Corporate Finance 10th Edition Ross Westerfield Jaffe.pdf Jun 2026

Introduction to Corporate Finance

Corporate finance is concerned with the management of a firm's financial resources and activities. The goal of corporate finance is to maximize shareholder wealth.

Financial Statements and Cash Flow

The three main financial statements are the balance sheet, income statement, and statement of cash flows. The balance sheet provides a snapshot of a firm's financial position at a point in time. The income statement shows a firm's revenues and expenses over a period of time. The statement of cash flows shows the inflows and outflows of cash over a period of time. Corporate Finance 10th Edition Ross Westerfield Jaffe.pdf

Financial Markets and Instruments

Financial markets provide a platform for firms to raise capital and for investors to buy and sell securities. Common types of securities include stocks, bonds, and derivatives.

Time Value of Money

The time value of money refers to the idea that a dollar received today is worth more than a dollar received in the future. The present value (PV) of a future cash flow is the amount that would need to be invested today to generate that cash flow. The future value (FV) of a present cash flow is the amount that the cash flow will grow to in the future.

Risk and Return

Risk refers to the uncertainty associated with an investment's returns. Return refers to the gain or loss on an investment over a period of time. The risk-return tradeoff refers to the idea that investments with higher expected returns also have higher levels of risk. The balance sheet provides a snapshot of a

Cost of Capital

The cost of capital refers to the minimum return that a firm must earn on its investments to satisfy its creditors and shareholders. The cost of capital is typically calculated as a weighted average of the costs of debt and equity.