Tutoring For Ross, Westerfield, Jaffe and Jordan’s Corporate Finance Textbooks: Fundamentals of Corporate Finance, Fundamentals of Corporate Finance, Essentials of Corporate Finance and Corporate Finance: Core Principles and Applications.

Stephan A. Ross, Randolph W. Westerfield, Jeffrey F. Jaffe, and Bradford D. Jordan, known collectively as the Ross, Westerfield, Jaffe, and Jordan team, have been leaders in writing corporate finance textbooks for over thirty years. Their first textbook came out in 1988! Together, this quartet brings over a century and a half of experience in teaching the fundamental principles of corporate finance. Their collaborative work has resulted in numerous widely used textbooks with multiple editions, designed for both graduate and undergraduate business programs. GraduateTutor.com offers finance tutoring for all of these textbooks, including their most popular titles: Corporate Finance (Core), Fundamentals of Corporate Finance, Essentials of Corporate Finance and Corporate Finance: Core Principles and Applications.

These books are published by various publishers who own the copyrights to these books. Our finance tutors only provide live online and in person tutoring to graduate and undergraduate students who use these textbooks. This pages covers the following topics:

  1. Corporate finance textbooks authored by Ross, Westerfield, Jaffe, and Jordan
  2. Why We Do Corporate Finance Tutoring for Ross, Westerfield, Jaffe, and Jordan Textbooks
  3. Structure of the Corporate Finance TextBook
    • Foundational Overview Of Corporate Finance
    • Valuation Companies Or Assets And Capital Allocation or Capital Budgeting
    • Risk in Corporate Finance
    • Capital Structure and Dividend Policy in Finance
    • Long-Term Financing: Debt or Equity
    • Options, Futures, and Other Topics in Corporate Finance
  4. Brief Backgrounds of the Authors Ross, Westerfield, Jaffe and Jordan
  5. Key Features or Updates of Various Editions of Corporate Finance Textbooks by Ross, Westerfield, Jaffe, and Jordan
    • Editions of Corporate Finance by Ross, Westerfield, Jaffe, and Jordan
    • Editions of Fundamentals of Corporate Finance by Ross, Westerfield, Jaffe, and Jordan
    • Editions of Essentials of Corporate Finance by Ross, Westerfield, Jaffe, and Jordan
    • Editions of Corporate Finance: Core Principles and Applications by Ross, Westerfield, Jaffe, and Jordan
  6. Obituary: Stephan A. Ross
  7. Tutoring for any of the Ross, Westerfield, Jaffe and Jordan team’s finance Text Books

Corporate Finance Books Authored by Ross, Westerfield, Jaffe, and Jordan

Here are the well-known corporate finance books authored by Stephan A. Ross, Randolph W. Westerfield, Jeffrey F. Jaffe, and Bradford D. Jordan, who have collaborated on multiple editions:

  1. Corporate Finance: This is one of their core texts, often used in graduate and MBA programs, covering advanced topics in corporate finance with an emphasis on theory and real-world applications.
  2. Fundamentals of Corporate Finance: Geared toward undergraduate students, this book introduces the essential concepts of corporate finance and provides a solid foundation in financial principles, valuation, and decision-making.
  3. Essentials of Corporate Finance: This book is a condensed version of Fundamentals of Corporate Finance, designed to cover the most crucial corporate finance concepts for shorter or introductory courses.
  4. Corporate Finance – Core Principles and Applications: This textbook is another streamlined version, focusing on core principles and applications of corporate finance without the extensive depth of Corporate Finance.

Why We Do Corporate Finance Tutoring for Ross, Westerfield, Jaffe, and Jordan Textbooks

Our finance team has a deep appreciation for these textbooks for a variety of reasons.

Emphasis on Valuation: One of the core strengths of the Ross, Westerfield, Jaffe, and Jordan textbooks is their focus on valuation as a central component of finance. The authors strongly believe that a finance professional’s primary role, alongside management, is to increase a business’s value. Their textbooks emphasize valuation and net present value as critical drivers of financial decision-making, with detailed discussions on how various finance concepts impact valuation.

Decision-Making Focus: The textbooks emphasize that finance theory and practice are intended to support decision-making with a finance or valuation perspective. The authors highlight a range of finance theories, tools, and techniques that assist in decision-making, noting both their benefits and limitations. In cases where there are different schools of thought, the authors present these opposing views, offering students a well-rounded understanding.

Focus on Key Concepts: The authors carefully curate their content to focus on the most essential finance concepts for introductory and intermediate students, leaving advanced topics for other textbooks. This approach ensures that students build a solid foundation without being overwhelmed by complexity too early.

Consideration of Course Constraints: Acknowledging that finance courses often span limited timeframes—sometimes only a few months, weeks, or even weekends—Ross, Westerfield, Jaffe, and Jordan emphasize readability and suitability for self-study. Their approach is particularly beneficial for students in both synchronous and asynchronous online programs where interaction with faculty may be limited.

Real-World Examples: To bring theory to life, the authors include numerous real-world examples that illustrate corporate finance concepts, techniques, and tools. This not only deepens students’ understanding of finance theory but also provides insight into the practical role of a finance professional in the corporate environment. Reviews on platforms like Amazon underscore the effectiveness of this approach in helping students bridge the gap between theory and practice.

Structure of the Corporate Finance Textbooks By Ross, et al.

Foundational Overview Of Corporate Finance

The first part of the textbook, encompassing Chapters 1 to 3, provides a foundational overview of corporate finance. It begins with an introduction to corporate finance, which lays out key principles and the role of finance in business. Next, it covers Financial Statements and Cash Flow, emphasizing the importance of understanding and managing cash flow for business health. The section concludes with Financial Statement Analysis and Financial Models, where students learn to analyze financial data and utilize models to make informed financial decisions. Together, these chapters establish essential knowledge for further exploration of corporate finance.

Valuation Companies Or Assets And Capital Allocation or Capital Budgeting

The second part of the textbook, covering Chapters 4 through 8, delves into Valuation and Capital Budgeting. It begins with discounted cash flow valuation, which introduces methods for assessing the value of future cash flows. This is followed by a chapter on Net Present Value and Other Investment Rules, which examines criteria for evaluating investment opportunities. Making Capital Investment Decisions provides practical frameworks for selecting and managing investments, while Risk Analysis, Real Options, and Capital Budgeting explores the impact of Risk and flexibility in project evaluation. Finally, Interest Rates and Bond Valuation offers insights into interest rate dynamics and the principles of valuing bonds, rounding out a comprehensive guide to making sound financial decisions in capital budgeting. 

Risk in Corporate Finance

The third part of the textbook, spanning Chapters 10 through 13, focuses on the theme of Risk. It begins with Lessons from Market History, which provides insights into historical market behavior as a basis for understanding Risk. Return, Risk, and the Capital Asset Pricing Model introduces the CAPM framework, linking Risk to expected returns. In An Alternative View of Risk and Return, students explore other perspectives on managing and interpreting Risk. The section concludes with Risk, Cost of Capital, and Valuation, where the relationship between Risk, capital costs, and valuation strategies is examined, emphasizing how risk factors into financial decision-making and asset valuation.

Capital Structure and Dividend Policy in Finance

The fourth part of the textbook, spanning Chapters 14 through 19, addresses Capital Structure and Dividend Policy. It begins with Efficient Capital Markets and Behavioral Challenges, exploring market efficiency and behavioral factors influencing financial decision-making. Long-Term Financing follows, discussing strategies for raising capital over extended periods. The next two chapters, Capital Structure: Basic Concepts and Capital Structure: Limits to the Use of Debt, provide foundational knowledge on capital structure and examine the potential drawbacks of excessive debt. Valuation and Capital Budgeting for the Levered Firm integrates leverage considerations into valuation and investment decisions, while the section concludes with Dividends and Other Payouts, offering insights into dividend policies and distribution methods. Together, these chapters present a comprehensive look at capital structure and payout strategies.

Long-Term Financing: Debt or Equity

The fifth part of the textbook, covering Chapters 20 and 21, focuses on Long-Term Financing. Chapter 20, Raising Capital, explores the various methods companies use to secure long-term funding, from issuing equity to debt financing, along with the associated challenges and strategies. Chapter 21, Leasing, examines leasing as an alternative financing option, discussing its advantages, limitations, and implications for financial planning. This section provides a detailed look at how firms can effectively structure long-term financing to support their growth and operational needs.

Options, Futures, and Other Topics in Corporate Finance

The sixth part of the textbook, spanning Chapters 22 and 23, covers Options, Futures, and Corporate Finance. Chapter 22, Options and Corporate Finance, introduces the fundamental principles of options and their relevance to corporate finance, providing insights into how options can be used in financial decision-making. Chapter 23, Options and Corporate Finance: Extensions and Applications, builds on these concepts by exploring advanced applications and strategies involving options within corporate finance. Together, these chapters equip readers with an understanding of options as valuable tools for enhancing financial strategies and managing Risk.

Brief Backgrounds of the Authors Ross, Westerfield, Jaffe and Jordan

Stephan A. Ross

Stephan A. Ross was a renowned economist and one of the most influential figures in financial economics. Known for his pioneering work on the Arbitrage Pricing Theory (APT), Ross made significant contributions to understanding how assets are priced in the market. His research paper, “The Arbitrage Theory of Capital Asset Pricing” (1976), laid the foundation for APT, which provided an alternative to the Capital Asset Pricing Model (CAPM). Ross also contributed to the development of agency theory and the concept of risk-neutral pricing, both of which are integral to modern finance. His work has had a lasting impact on corporate finance, investment strategies, and risk management, making him a respected authority in the field. Since 2005, Stephen Ross has been involved in developing complex valuation models for options, compensation packages, etc. through Compensation Valuation, Inc. in partnership with Andrew Jeffery, Richard Roll and Rick Antle.

Professor Stephan A. Ross has an extensive publication record in finance and business journals, alongside authoring numerous textbooks on corporate finance. A former president of the American Finance Association, he currently holds roles as an associate editor for several leading academic and practitioner journals. Beyond academia, he serves as a trustee at CalTech, a director of the College Retirement Equity Fund (CREF) and Freddie Mac, and co-chairs Roll and Ross Asset Management Corporation. Additionally, Professor Ross has held teaching positions at prestigious institutions, including Yale University and the Wharton School of Business.

Professor Stephan A. Ross has also written a book “Neoclassical Finance” in the ‘Princeton Lectures in Finance’ series and published by Princeton University Press.

Randolph W. Westerfield

Randolph W. Westerfield is a distinguished professor and finance expert with a career dedicated to corporate finance and investments. He has published widely on topics such as stock market behavior, investment analysis, and financial management. His paper “Estimating Risk Premia in CAPM,” co-authored with other prominent scholars, explores the estimation of risk premiums in financial markets and contributes to our understanding of asset pricing models. Westerfield’s work is highly regarded in both academic and professional circles, as he brings a robust theoretical foundation to real-world financial practices, especially in corporate finance and valuation.

Professor Randolph Westerfield is the Dean of the Marshall School of Business at the University of Southern California, where he also holds the Robert R. Dockson Dean’s Chair in Business Administration. From 1988 to 1993, he served as the chairman of USC’s finance and business economics department and held the Charles B. Thornton Professorship in Finance. Prior to joining USC, Professor Westerfield spent two decades at the Wharton School, University of Pennsylvania, where he chaired the finance department and was a long-standing member of the finance faculty. His expertise spans corporate financial policy, investment management and analysis, mergers and acquisitions, and stock market price behavior. Professor Westerfield has served on the Continental Bank’s trust committee, overseeing trust department activities, and has acted as a consultant for numerous organizations, including AT&T, Mobil Oil, and Pacific Enterprises, as well as for the United Nations, the U.S. Departments of Justice and Labor, and the State of California.

Jeffrey F. Jaffe

Jeffrey F. Jaffe is a respected finance academic whose research spans corporate finance, investments, and market efficiency. One of his notable research contributions is the paper “Abnormal Stock Returns and Insider Trading,” which explores the impact of insider trading on stock prices and has influenced policy and regulation around market behavior. Jaffe has published widely on market efficiency, mergers, and capital structure, shedding light on critical topics that shape modern finance. His work emphasizes the practical implications of finance theories, making his research accessible and relevant to finance professionals and students alike.

Professor Jeffrey Jaffe has been a member of the Wharton School faculty since completing his PhD in 1973, marking a distinguished career spanning over four decades at the same institution. He is a prolific contributor to finance and economics literature, with articles published in prominent journals such as the Quarterly Economic Journal, The Journal of Finance, The Journal of Financial and Quantitative Analysis,The Journal of Financial Economics, and The Financial Analysts Journal. Professor Jaffe is best known for his influential work on insider trading, where he demonstrated that corporate insiders consistently earn abnormal profits from their trades, and that regulation has limited impact on curbing these profits. His research contributions also cover a broad range of topics, including initial public offerings, utility regulation, market maker behavior, gold price fluctuations, the theoretical and empirical effects of inflation on interest rates and capital asset prices, the January effect in small-cap stocks, and corporate capital structure decisions.

Bradford D. Jordan

Bradford D. Jordan is a finance professor and researcher known for his work in the areas of investments, market behavior, and asset pricing. His research interests often focus on how financial markets operate and how assets are valued over time. In his paper “Pricing Defaultable Bonds Using the Jarrow-Turnbull Model,” Jordan examines bond pricing models in the presence of default risk, which is highly relevant for corporate finance and investment strategies. Jordan’s research is characterized by a rigorous analytical approach, and his insights have enriched the understanding of bond markets and valuation techniques, making his contributions valuable for both academic and practical applications in finance.

Professor Bradford D. Jordan is the Professor of Finance and holds the Richard W. and Janis H. Furst Endowed Chair in Finance at the Gatton College of Business and Economics, University of Kentucky. He earned both his BSBA and PhD in Finance from the University of Florida. Professor Jordan joined the Gatton College faculty in 1997, following previous faculty positions at the University of Georgia and the University of Missouri. Specializing in corporate finance and financial asset valuation, he has authored numerous articles in top finance journals and has been honored with various research awards for his contributions to the field.

Various Editions of Corporate Finance by Ross, Westerfield, Jaffe, and Jordan

Highlighting one major change or addition in each Edition of Corporate Finance by Ross, Westerfield, Jaffe, and Jordan can help illustrate how the text has evolved to meet the changing needs of students and the field. Here’s an overview:

  1. 1st Edition (1988): Launched as a comprehensive, theory-driven textbook emphasizing valuation and capital budgeting, setting a foundation for modern corporate finance education.
  2. 2nd Edition (1990): Introduced more real-world examples and applications to help students bridge theory and practice, emphasizing practical finance decision-making.
  3. 3rd Edition (1993): Added in-depth coverage of international finance topics, responding to the increasing globalization of financial markets.
  4. 4th Edition (1996): Expanded coverage on risk management, with a focus on derivatives and options, reflecting their growing importance in corporate finance.
  5. 5th Edition (1999): Included new content on corporate governance and agency problems, addressing rising concerns about corporate responsibility and management accountability.
  6. 6th Edition (2002): Integrated financial statement analysis and cash flow management more thoroughly, catering to a growing interest in financial health and performance metrics post-Enron.
  7. 7th Edition (2005): Emphasized capital structure decisions, with updated insights into optimal debt-equity ratios, reflecting new research in capital structure theory.
  8. 8th Edition (2008): Responded to the global financial crisis by expanding risk analysis content, including topics on market volatility and financial resilience.
  9. 9th Edition (2010): Enhanced content on behavioral finance, addressing the psychological factors that influence financial decision-making and investor behavior.
  10. 10th Edition (2013): Added contemporary case studies and examples from recent corporate finance events to keep the material relevant and engaging.
  11. 11th Edition (2016): Increased focus on technology’s role in finance, including fintech developments and electronic trading, to prepare students for a digitalized finance industry.
  12. 12th Edition (2019): Expanded sections on sustainability and corporate social responsibility, reflecting the growing importance of ESG (Environmental, Social, and Governance) criteria in finance.
  13. 13th Edition (2021): Introduced content on data analytics in finance, incorporating skills for analyzing large data sets and applying quantitative methods, in response to the data-driven nature of modern finance.

Each Edition reflects the authors’ efforts to keep the book current with trends, regulations, and technological advancements, making it a continually relevant resource for finance students and professionals.

Various Editions of Fundamentals of Corporate Finance by Ross, Westerfield, Jaffe, and Jordan

“Fundamentals of Corporate Finance” by Stephen A. Ross, Randolph W. Westerfield, Jeffrey F. Jaffe, and Bradford D. Jordan has undergone several editions, each incorporating significant updates to reflect the evolving landscape of corporate finance. Below is an overview of the editions, their publication years, and notable changes introduced in each:

  1. 1st Edition (1991): Established a foundational approach to corporate finance, emphasizing core principles and valuation techniques.
  2. 2nd Edition (1993): Introduced enhanced coverage of international finance topics, acknowledging the growing globalization of financial markets.
  3. 3rd Edition (1996): Expanded discussions on risk management and derivatives, reflecting their increasing importance in financial strategy.
  4. 4th Edition (1999): Added comprehensive sections on corporate governance and ethical considerations in financial decision-making.
  5. 5th Edition (2002): Incorporated real-world case studies to bridge theory and practice, enhancing practical understanding.
  6. 6th Edition (2005): Updated content to include advancements in financial technology and electronic trading platforms.
  7. 7th Edition (2008): Responded to the global financial crisis by including new material on financial crises and risk assessment.
  8. 8th Edition (2011): Emphasized behavioral finance, exploring how psychological factors influence financial decisions.
  9. 9th Edition (2014): Integrated sustainability and corporate social responsibility topics, aligning with emerging trends in finance.
  10. 10th Edition (2017): Enhanced focus on data analytics and its applications in financial analysis and decision-making.
  11. 11th Edition (2020): Updated to reflect recent tax reforms and their implications for corporate finance strategies.
  12. 12th Edition (2023): Expanded coverage of fintech innovations, including blockchain technology and cryptocurrency impacts on finance.

Each Edition has been meticulously revised to incorporate contemporary developments, ensuring that readers receive current and relevant information in the field of corporate finance.

Various Editions of Essentials of Corporate Finance by Ross, Westerfield, Jaffe, and Jordan

“Essentials of Corporate Finance” by Stephen A. Ross, Randolph W. Westerfield, Jeffrey F. Jaffe, and Bradford D. Jordan has been a foundational text in finance education, with each Edition incorporating significant updates to reflect the evolving landscape of corporate finance. Below is an overview of the editions, their publication years, and notable changes introduced in each:

  1. 1st Edition (1996): Established a concise approach to corporate finance, focusing on core principles and valuation techniques.
  2. 2nd Edition (1999): Introduced enhanced coverage of international finance topics, acknowledging the growing globalization of financial markets.
  3. 3rd Edition (2002): Expanded discussions on risk management and derivatives, reflecting their increasing importance in financial strategy.
  4. 4th Edition (2005): Added comprehensive sections on corporate governance and ethical considerations in financial decision-making.
  5. 5th Edition (2008): Incorporated real-world case studies to bridge theory and practice, enhancing practical understanding.
  6. 6th Edition (2010): Updated content to include advancements in financial technology and electronic trading platforms.
  7. 7th Edition (2013): Responded to the global financial crisis by including new material on financial crises and risk assessment.
  8. 8th Edition (2016): Emphasized behavioral finance, exploring how psychological factors influence financial decisions.
  9. 9th Edition (2019): Integrated sustainability and corporate social responsibility topics, aligning with emerging trends in finance.
  10. 10th Edition (2022): Enhanced focus on data analytics and its applications in financial analysis and decision-making.

Each Edition has been meticulously revised to incorporate contemporary developments, ensuring that readers receive current and relevant information in the field of corporate finance.

Various Editions of Corporate Finance: Core Principles and Applications by Ross, Westerfield, Jaffe, and Jordan

“Corporate Finance: Core Principles and Applications” by Stephen A. Ross, Randolph W. Westerfield, Jeffrey F. Jaffe, and Bradford D. Jordan has been a foundational text in finance education, with each Edition incorporating significant updates to reflect the evolving landscape of corporate finance. Below is an overview of the editions, their publication years, and notable changes introduced in each:

  1. 1st Edition (2006): Established a concise approach to corporate finance, focusing on core principles and valuation techniques.
  2. 2nd Edition (2008): Introduced enhanced coverage of international finance topics, acknowledging the growing globalization of financial markets.
  3. 3rd Edition (2011): Expanded discussions on risk management and derivatives, reflecting their increasing importance in financial strategy.
  4. 4th Edition (2014): Added comprehensive sections on corporate governance and ethical considerations in financial decision-making.
  5. 5th Edition (2017): Incorporated real-world case studies to bridge theory and practice, enhancing practical understanding.
  6. 6th Edition (2020): Updated content to include advancements in financial technology and electronic trading platforms.
  7. 7th Edition (2024): Responded to the global financial crisis by including new material on financial crises and risk assessment.

Each Edition has been meticulously revised to incorporate contemporary developments, ensuring that readers receive current and relevant information in the field of corporate finance.

Obituary: Stephan A. Ross

Stephen A. Ross (February 3, 1944 – March 3, 2017), a trailblazer in financial economics and a celebrated author, left an enduring legacy in finance upon his passing. Over his career, Ross held prestigious academic positions, including at the Massachusetts Institute of Technology and Yale University, and was widely regarded for his rigorous yet accessible approach to finance. Beyond academia, he served on numerous boards, contributing to both research and practical applications of financial theory. Professor Ross’s contributions will continue to shape the field of finance for generations to come.

Tutoring for the Ross, Westerfield, Jaffe and Jordan’s Finance Text Books

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