Corporate Finance - European Edition

E-Book Overview

Corporate Finance, 1st European Edition, is an adaptation of the hugely successful Corporate Finance text by Ross, Westerfield, Jaffe and Jordan aimed specifically at courses outside the United States. Covering the core and emerging topics in an engaging and effective way makes this text a must have for all students studying corporate finance.

E-Book Information

  • Year: 2,016

  • Edition: 3rd

  • Pages: 904

  • Pages In File: 1,248

  • Language: English

  • Topic: 2

  • Identifier: 0077173635,9780077173630

  • Org File Size: 31,653,954

  • Extension: pdf

  • Toc: Title......Page 5 Copyright......Page 6 Dedication......Page 8 Brief table of contents......Page 9 Detailed table of contents......Page 11 Preface......Page 26 Guided Tour......Page 27 Connect Page......Page 30 About the Author......Page 36 Acknowledgements......Page 37 Half Title......Page 2 Part 1: Overview......Page 43 1 Introduction to Corporate Finance......Page 45 1.1 What is Corporate Finance?......Page 46 1.2 The Goal of Financial Management......Page 54 1.3 Financial Markets......Page 57 1.4 Corporate Finance in Action: The Case of Google......Page 65 Questions and Problems......Page 69 Practical Case Study......Page 74 Additional Reading......Page 75 Endnote......Page 76 2 Corporate Governance......Page 77 2.1 The Corporate Firm......Page 79 2.2 The Agency Problem and Control of the Corporation......Page 87 2.3 The Governance Structure of Corporations......Page 100 2.4 The OECD Principles of Corporate Governance......Page 104 2.5 International Corporate Governance......Page 111 2.6 Corporate Governance in Action: Starbucks......Page 115 Questions and Problems......Page 117 Mini Case......Page 120 Additional Reading......Page 121 Part 2: Value and Capital Budgeting......Page 131 3 Financial Statement Analysis......Page 132 3.1 The Statement of Financial Position......Page 133 3.2 The Income Statement......Page 136 3.3 Taxes......Page 137 3.5 Cash Flow......Page 140 3.6 Financial Statement Analysis......Page 143 3.7 Ratio Analysis......Page 144 3.8 The Du Pont Identity......Page 154 3.9 Using Financial Statement Information......Page 156 Summary and Conclusions......Page 159 Questions and Problems......Page 160 Exam Question (45 minutes)......Page 166 Mini Case......Page 167 Additional Reading......Page 170 Endnote......Page 171 4 Discounted Cash Flow Valuation......Page 172 4.1 Valuation: The One-period Case......Page 173 4.2 Valuation: The Multi-period Case......Page 177 4.3 Compounding Periods......Page 185 4.4 Simplifications......Page 189 Summary and Conclusions......Page 199 Questions and Problems......Page 201 Exam Question (45 minutes)......Page 205 Mini Case......Page 206 Endnotes......Page 207 5 Bond, Equity and Firm Valuation......Page 208 5.1 Definition and Example of a Bond......Page 209 5.2 How to Value Bonds......Page 211 5.3 Bond Concepts......Page 213 5.4 The Present Value of Equity......Page 215 5.5 Estimates of Parameters in the Dividend Growth Model......Page 220 5.6 Growth Opportunities......Page 225 5.7 The Dividend Growth Model and the NPVGO Model......Page 229 5.8 Stock Market Report

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