Essentials of Corporate Finance

Corporate finance becomes easier to follow when its ideas are connected to the decisions managers actually make. Essentials of Corporate Finance, Ninth Edition, builds an introductory course around that premise, giving core financial concepts an intuitive explanation before turning to their practical application.

Across 18 chapters, Stephen A. Ross, Randolph W. Westerfield, and Bradford D. Jordan guide readers from financial statements and cash flow through valuation, investment decisions, risk, and financing. The result is a focused undergraduate text designed for a one-term course—including students whose studies are not centered on finance.

One valuation idea ties the course together

Net present value (NPV) serves as the book’s central thread. Rather than treating finance as a collection of calculations, the authors connect topics through the question of how decisions affect value. That perspective helps readers see why a method matters, not just how to apply it.

From financial statements to investment choices

The opening parts introduce financial management, financial statements, cash flow, and the time value of money. The discussion then moves into stocks and bonds, capital budgeting, and risk and return—building a foundation for understanding how firms assess opportunities and financing choices.

A manager’s view of corporate finance

Later chapters turn to the cost of capital, capital structure, dividends, raising capital, short-term financial planning, and working capital management, before considering international aspects of financial management. Throughout, the emphasis is on the financial manager as a decision-maker who must use judgment as well as analysis.

Designed for a single-term introduction

The ninth edition is deliberately selective rather than encyclopedic. Its approachable, conversational teaching style and focus on essential principles make it relevant to undergraduate business students, including those taking a required finance course outside their major.

For readers seeking a structured introduction to corporate finance, this edition offers a clear route from foundational concepts to the decisions that shape a company’s financial direction.