<PAGE>1
Filed Pursuant to
Rule 424(b)(3)
File No. 33-58989
PRICING SUPPLEMENT NO. 25 DATED
September 12, 1996 TO PROSPECTUS
DATED June 15, 1995 AND PROSPECTUS
SUPPLEMENT DATED June 15, 1995
McDONNELL DOUGLAS FINANCE CORPORATION
Series X Medium-Term Notes
Due Nine Months or More From Date of Issue
Except as set forth herein, the Series X Medium-Term Notes offered hereby
(the "Notes") have such terms as are described in the accompanying Prospectus
dated June 15, 1995, as amended and supplemented by the Prospectus Supplement
dated June 15, 1995 (the "Prospectus").
Aggregate Principal
Amount: $10,000,000
Original Issue Date
(Settlement Date): September 17, 1996
Stated Maturity Date: September 17, 1998
Interest Rate: 6.55%
Interest Payment Dates: March 15 and September 15 commencing March 15, 1997
Type of Notes Issued: [X] Senior Note [X] Fixed Rate Notes
[ ] Subordinated Notes [ ] Floating Rate Notes
Optional Redemption: [ ] Yes
[X] No
Form of Notes Issued: [X] Book-Entry Notes
[ ] Certificated Notes
CUSIP Number: 58017DEJ5
PURCHASE AS PRINCIPAL
This Pricing Supplement relates to $10,000,000 aggregate principal amount
of Notes that are being purchased, as principal, by Morgan Stanley & Co.
Incorporated ("Morgan Stanley") for resale to one or more investors at varying
prices related to prevailing market conditions at the time or times of resale
as determined by Morgan Stanley. Net proceeds payable by Morgan Stanley to
McDonnell Douglas Finance Corporation (the "Company") will be 99.927% of the
aggregate principal amount of the Notes, or $9,992,700 before deduction of
expenses payable by the Company. In connection with the sale of the Notes,
Morgan Stanley may be deemed to have received compensation from the Company in
the form of underwriting discounts in the amount of .073% or $7,300.
