Fundamentals of Corporate Finance, Standard Edition is one of the premiere corporate finance books on the market today. Fundamentals of Corporate Finance, Standard Edition is published by McGraw-Hill. The book is written by Stephen A. Ross of the Massachusetts Institute of Technology, Randolph W. Westerfield of the University of Southern California, and Bradford D. Jordan, of the University of Kentucky-Lexington.
The various volumes of these corporate finance books are guided by the principle that corporate finance should be able to be taught in terms of three powerful ideas that are well integrated throughout the many publications of the Fundamentals of Corporate Finance, Standard Edition:
1. Emphasis on Intuition,
2. Unified Valuation Approach,
3. Managerial Focus.
The emphasis on intuition in Fundamentals of Corporate Finance, Standard Edition seeks to present the underlying ideas in general terms before going into examples that demonstrate in a concrete manner the course of action that might be taken by a financial manager.
The unified valuation approach differs from other corporate finance books since it demonstrates the “net present value” of each option as the underlying concept behind each decision in corporate finance. This means that each topic is analyzed for its valuation, and care is then taken to explain the valuation effects of each choice.
The managerial focus is the result of the authors’ emphasis on the decision-maker aspect of a financial manager’s job and stresses the need for managerial input and careful judgment.