Stephen A. Ross,
Massachusetts Institute of Technology Randolph W. Westerfield,
University of Southern California Jeffrey Jaffe,
University of Pennsylvania
ISBN: 0072829206 Copyright year: 2005
What's New
Significant reorganization and expanded content of financial accounting, cash flows, and sustainable growth. The previous edition's chapter on corporate financial models and long-term planning that appeared late in the book is now included with the early chapters to provide earlier, more foundational coverage of cash flow and sustainable growth to bridge accounting and valuation concepts.
Chapter 8 includes approximately 50% new material on risk analysis and real options. This is reflected in the new chapter title, Risk Analysis, Real Options, and Capital Budgeting. This reinforces the capital budgeting material from the previous chapter. There is very modern, new coverage of real options now moved earlier in the book. There is also coverage of Monte Carlo simulation techniques.
Chapter 6 is greatly improved by presenting alternatives to Net Present Value such as modified Internal Rate of Return and better treatment of the profitability index. There is also new material on capital budgeting "best practices," where the authors relate what companies actually do to theoretical models. This content showcases the latest research and scholarship—it is very fresh and modern.
Chapter 13 includes new material on efficient markets behavioral finance. This content covers a new way of thinking about financial markets and behavioral issues versus efficient markets theory. There is a lot of interest and research in this new "cutting edge" topic.
Incorporates the latest theoretical developments in capital budgeting, capital structure and dividends throughout chapters 7, 15, 16, and 18. The recent tax code is also included (e.g. the new marginal individual tax rates and the lower taxes on dividends and capital gains.)
New Student CD-ROM is packaged free with each new book. It includes Self-Study Questions (prepared by Robert Hanson of Eastern Michigan University) and web links to the book's Online Learning Center, Excel Templates, Corporate Finance Online, Finance Around the World and selected video clips on key corporate finance topics.
The Solutions Manual has been entirely reworked and revised by the authors. It has been thoroughly reviewed for accuracy by multiple sources. There are worked-out solutions for all of the problems in the end-of-chapter material. Much effort has been placed on providing solutions in greater detail, to eliminate ambiguity as to what the final answer should be.
Many new problems have been added to the end of most chapters, with particular emphasis on expanding the problems in the capital budgeting chapters (5, 6, 7). There are also new S&P Problems that directly incorporate the Educational Version of Market Insight. Access to this online resource is free with each new copy of the book. The site contains quantitative and qualitative data on over 500 top companies; it is powered by S&P's renowned COMPUSTAT® database. These problems provide an easy way to bring current, real-world data into the classroom.
Includes free access to the new Ethics in Finance PowerWeb, a dynamic, comprehensive resource for finance students to understand both the roots and current events surrounding corporate and financial ethics. The site includes many recent articles from both academic and popular press resources, along with an abstract on each article. In addition, there is a news feed that continually updates the site.
To obtain an instructor login for this Online Learning Center, ask your local sales representative.
If you're an instructor thinking about adopting this textbook, request a free copy for review.
2005 McGraw-Hill Higher Education