Corporate Finance,9th,Ross 1(4)

CorporateFinanceTheMcGraw-Hill/IrwinSeriesinFinance,Insurance,andRealEstateStephenA.RossFrancoModiglianiProfessorofFinanceandEconomicsConsultingEditorFinancialManagementAdairExcelApplicationsforCorporateFinanceBlock,Hirt,andDanielsenFoundationsofFinancialManagementBrealey,Myers,andAllenPrinciplesofCorporateFinanceBrealey,Myers,andAllenPrinciplesofCorporateFinance,ConciseBrealey,Myers,andMarcusFundamentalsofCorporateFinanceBrooksFinGameOnline5.0BrunerCaseStudiesinFinance:ManagingforCorporateValueCreationChewTheNewCorporateFinance:WhereTheoryMeetsPracticeCornett,Adair,andNofsingerFinance:ApplicationsandTheoryDeMelloCasesinFinanceGrinblatt(editor)StephenA.Ross,Mentor:InfluencethroughGenerationsGrinblattandTitmanFinancialMarketsandCorporateStrategyHigginsAnalysisforFinancialManagementKellisonTheoryofInterestKester,Ruback,andTufanoCaseProblemsinFinanceRoss,Westerfield,andJaffeCorporateFinanceRoss,Westerfield,Jaffe,andJordanCorporateFinance:CorePrinciplesandApplicationsRoss,Westerfield,andJordanEssentialsofCorporateFinanceRoss,Westerfield,andJordanFundamentalsofCorporateFinanceShefrinBehavioralCorporateFinance:DecisionsthatCreateValueWhiteFinancialAnalysiswithanElectronicCalculatorInvestmentsBodie,Kane,andMarcusEssentialsofInvestmentsBodie,Kane,andMarcusInvestmentsHirtandBlockFundamentalsofInvestmentManagementHirscheyandNofsingerInvestments:AnalysisandBehaviorJordanandMillerFundamentalsofInvestments:ValuationandManagementFinancialInstitutionsandMarketsRoseandHudginsBankManagementandFinancialServicesRoseandMarquisMoneyandCapitalMarkets:FinancialInstitutionsandInstrumentsinaGlobalMarketplaceSaundersandCornettFinancialInstitutionsManagement:ARiskManagementApproachSaundersandCornettFinancialMarketsandInstitutionsInternationalFinanceEunandResnickInternationalFinancialManagementKuemmerleCaseStudiesinInternationalEntrepreneurship:ManagingandFinancingVenturesintheGlobalEconomyRealEstateBrueggemanandFisherRealEstateFinanceandInvestmentsLingandArcherRealEstatePrinciples:AValueApproachFinancialPlanningandInsuranceAllen,Melone,Rosenbloom,andMahoneyRetirementPlans:401(k)s,IRAs,andOtherDeferredCompensationApproachesAltfestPersonalFinancialPlanningHarringtonandNiehausRiskManagementandInsuranceKapoor,Dlabay,andHughesFocusonPersonalFinance:AnactiveapproachtohelpyoudevelopsuccessfulfinancialskillsKapoor,Dlabay,andHughesPersonalFinanceCorporateFinanceStephenA.RossSloanSchoolofManagementMassachusettsInstituteofTechnologyRandolphW.WesterfieldMarshallSchoolofBusinessUniversityofSouthernCaliforniaJeffreyJaffeWhartonSchoolofBusinessUniversityofPennsylvaniaCORPORATEFINANCEPublishedbyMcGraw-Hill/Irwin,abusinessunitofTheMcGraw-HillCompanies,Inc.,1221AvenueoftheAmericas,NewYork,NY,10020.Copyright©2010,2008,2005,2002,1999,1996,1993,1990,1988byTheMcGraw-HillCompanies,Inc.Allrightsreserved.Nopartofthispublicationmaybereproducedordistributedinanyformorbyanymeans,orstoredinadatabaseorretrievalsystem,withoutthepriorwrittenconsentofTheMcGraw-HillCompanies,Inc.,including,butnotlimitedto,inanynetworkorotherelectronicstorageortransmission,orbroadcastfordistancelearning.Someancillaries,includingelectronicandprintcomponents,maynotbeavailabletocustomersoutsidetheUnitedStates.Thisbookisprintedonacid-freepaper.1234567890DOW/DOW09ISBN978-0-07-338233-3MHID0-07-338233-7Vicepresidentandeditor-in-chief:Publisher:Executiveeditor:Directorofdevelopment:Developmenteditor:Vicepresidentanddirectorofmarketing:Marketingdirector:Seniormarketingmanager:Vicepresidentofediting,designandproduction:Leadprojectmanager:Productionsupervisor:Interiordesigner:Leadmediaprojectmanager:Coverimage:©Typeface:Compositor:Printer:LibraryofCongressCataloging-in-PublicationDataRoss,StephenA.Corporatefinance/StephenA.Ross,RandolphW.Westerfield,JeffreyJaffe.--9thed.p.cm.--(TheMcGraw-Hill/Irwinseriesinfinance,insuranceandrealestate)Includesindex.ISBN-13:978-0-07-338233-3(alk.paper)ISBN-10:0-07-338233-7(alk.paper)1.Corporations—Finance.I.Westerfield,Randolph.II.Jaffe,JeffreyF.,1946-III.Title.HG4026.R6752010658.15--dc222009028916’sMarshallSchoolofBusinessandistheCharlesB.ThorntonProfessorofFinance.ProfessorWesterfieldcametoUSCfromtheWhartonSchool,UniversityofPennsylvania,wherehewasthechairmanofthefinancedepartmentandmemberofthefinancefacultyfor20years.HewasalsoelectedtomembershipintheFinancialEc