Principles Of Corporate Finance
14th Edition By Brealey and Myers,
all Chapters 1 – 34 fully covered
, TABLE OF CONTENTS
E E
Chaptere1:eIntroductionetoeCorporateeFinance
Chaptere2:eHowetoeCalculateePresenteValues
Chaptere3:eValuingeBonds
Chaptere4:eValuingeStocks
Chaptere5:eNetePresenteValueeandeOthereInvestmenteCriteria
Chaptere6:eMakingeInvestmenteDecisionsewithetheeNetePresenteValueeRulee
Chaptere7:eIntroductionetoeRisk,eDiversification,eandePortfolioeSelection
Chaptere8:eTheeCapitaleAssetePricingeModel
Chaptere9:eRiskeandetheeCosteofeCapital
Chaptere10:eProjecteAnalysis
Chaptere11:eHowetoeEnsureeThateProjectseTrulyeHaveePositiveNPVse
Chaptere12:eEfficienteMarketseandeBehavioraleFinance
Chaptere13:eAneOvervieweofeCorporateeFinancing
Chaptere14:eHoweCorporationseIssueeSecuritiese
Chaptere15:ePayoutePolicy
Chaptere16:eDoeseDebtePolicyeMatter?
Chaptere17:eHoweMucheShouldeaeCorporationeBorrow?
Chaptere18:eFinancingeandeValuatione
Chaptere19:eAgencyeProblemseandeCorporateeGovernance
Chaptere20:eStakeholdereCapitalismeandeResponsibleeBusinesse
Chaptere21:eUnderstandingeOptions
Chaptere22:eValuingeOptions
Chaptere23:eRealeOptionse
Chaptere24:eCrediteRiskeandetheeValueeofeCorporateeDebt
Chaptere25:eTheeManyeDifferenteKindseofeDebt
Chaptere26:eLeasing
Chaptere27:eManagingeRisk
Chaptere28:eInternationaleFinancialeManagemente
Chaptere29:eFinancialeAnalysis
Chaptere30:eFinancialePlanning
Chaptere31:eWorkingeCapitaleManagement
Chaptere32:eMergers
Chaptere33:eCorporateeRestructuringe
,Chaptere34:eConclusion:eWhateWeeDoeandeDoeNoteKnoweabouteFinance
CHAPTERe1
IntroductionetoeCorporateeFinance
Theevalueseshowneinetheesolutionsemayebeeroundedeforedisplayepurposes.eHowever,etheeanswersewereederiv
edeusingeaespreadsheetewithouteanyeintermediateerounding.
AnswersetoeProblemeSets
1. a. real
b. executiveeairplanes
c. brandenames
d. financial
e. bonds
*f. investmenteorecapitaleexpenditure
*g. capitalebudgetingeoreinvestment
h. financing
*Noteethatefeandegeareeinterchangeableeinetheequestion.
Estetime:e01-05
2. Aetrademark,eaefactory,eundevelopedeland,eandeyoureworkeforcee(c,ed,ee,eandeg)eareeallerealeassets.
eRealeassetseareeidentifiableeaseitemsewitheintrinsicevalue.eTheeotherseinetheelisteareefinancialeasset
s,ethate is,etheseeassetsederivee valueebecausee ofeaecontractualeclaim.
Estetime:e01-05
3. a.
Financialeassets,esucheasestockseorebanke loans,e areeclaimseheldebyeinvestors.eCor
porationsesellefinancialeassetsetoeraiseetheecashetoeinvesteinerealeassetsesucheaseplantean
deequipment.eSomeerealeassetseareeintangible.
b. Capitaleexpenditureemeanseinvestmenteinerealeassets.eFinancingemeanseraisingethee cas
heforethise investment.
, c. Theeshareseofepublicecorporationseareetradedeonestockeexchangeseandecanebeepurchase
debyeaewideerangeeofeinvestors.eTheeshareseofecloselyeheldecorporationse areenote publiclyet
radedeandearee heldebyeaesmallegroupeofe privateeinvestors.
d. Unlimitedeliability:eInvestorseareeresponsibleeforealletheefirm‘sedebts.eAesoleeproprietoreha
seunlimitedeliability.eInvestorseinecorporationsehaveelimitedeliability.eTheyecaneloseetheirein
vestment,ebute noemore.
Estetime:e01-05