Stephen A. Ross,
Massachusetts Institute of Technology Randolph W. Westerfield,
University of Southern California Bradford D. Jordan,
University of Kentucky
ISBN: 0072439749 Copyright year: 2003
What's New
Extensive customer feedback has led to improvements and added features in the Sixth Edition of Fundamentals of Corporate Finance. We are grateful for the valuable feedback, and appreciate the many devoted instructors who helped shape improvements for this revision.
New chapter on Options and Corporate Finance! This edition of FCF contains a new chapter on options and corporate finance. This chapter (14), is an introduction to the increasingly important role of options in corporate finance. It covers stock options, employee stock options, real options and their role in capital budgeting, and the many different types of options found in corporate securities. Real options are an especially hot topic, and FCF contains the most thorough, up-to-date treatment available at the introductory level.
New chapter on Option Valuation! Available only in the alternate edition of FCF, this new chapter contains an all-new chapter (Chapter 24) on option valuation that covers the famous Black-Scholes Option Pricing Formula in depth and illustrates many applications in corporate finance.
Extensive updating! Extensive real-world illustrations have been added and updated to reflect very current events throughout the text. Material in numerous chapters has been updated to examine and describe new developments. To give a few examples, capital market history in Chapter 12 is updated to reflect market returns and events through 2000. A completely web-based illustration of cost-of-capital calculation is included in Chapter 15. Key developments in the IPO market such as the Internet "bubble," the role of "lockup" agreements, and current thinking on IPO underpricing have been added to Chapter 16. The discussion of mergers and acquisition in Chapter 25 (alternate edition only) has been updated to include important, just changed, rules regarding pooling of interests and goodwill.
Greater emphasis on the Internet! Numerous Internet features have been added, and this edition makes extensive use of the web, including a new box feature, numerous web screen shots, web links, and web exercises (in the end or chapter material). Work the Web boxes are found throughout the text, and show students how to research financial issues using the web and how to use the information they find to make business decisions. New web links are provided in the margins of the text. These links are specifically selected to accompany text material and provide students and instructors with a quick way to check for current and additional information using the Internet. Web exercises, called "What's on the Web," show students how to use and learn from the vast amount of financial resources available on the Internet.
Calculator hints! Brief calculator tutorials have been added in selected chapters to help students learn or brush up on their financial calculator skills. These complement the Spreadsheet Strategies that are retained features.
New Casebook! For the first time, an all-new casebook is available with FCF. Prepared by James DeMello of Western Michigan University, each hypothetical case is 3-4 pages long, followed by questions and problems for students to analyze situations and make decisions. There is also a short manual of teaching notes and PowerPoint slides to assist instructors with using the cases.
Fresh, contemporary new design! FCF 6/e includes, for the first time, a five-color design, which, along with a fresh, modern look, contributes to the pedagogical strengths of the book.
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