SOLUTION MANUAL FOR Principles Of Corporate Finance 14th Edition By Richard Brealey, Stewart Myers, ALL Chapters (1 - 34)

SOLUTION MANUAL FOR

Principles Of Corporate Finance
14th Edition By Richard Brealey, Stewart Myers,
ALL Chapters (1 - 34)

, TABLE OF CONTENTS
J J



Chapterj1:jIntroductionjtojCorporatejFinance
Chapterj2:jHowjtojCalculatejPresentjValues
Chapterj3:jValuingjBonds
Chapterj4:jValuingjStocks
Chapterj5:jNetjPresentjValuejandjOtherjInvestmentjCriteria
Chapterj6:jMakingjInvestmentjDecisionsjwithjthejNetjPresentjValuejRulej

Chapterj7:jIntroductionjtojRisk,jDiversification,jandjPortfoliojSelection
Chapterj8:jThejCapitaljAssetjPricingjModel
Chapterj9:jRiskjandjthejCostjofjCapital

Chapterj10:jProjectjAnalysis
Chapterj11:jHowjtojEnsurejThatjProjectsjTrulyjHavejPositiveNPVsj

Chapterj12:jEfficientjMarketsjandjBehavioraljFinance
Chapterj13:jAnjOverviewjofjCorporatejFinancing
Chapterj14:jHowjCorporationsjIssuejSecuritiesj

Chapterj15:jPayoutjPolicy
Chapterj16:jDoesjDebtjPolicyjMatter?
Chapterj17:jHowjMuchjShouldjajCorporationjBorrow?
Chapterj18:jFinancingjandjValuationj

Chapterj19:jAgencyjProblemsjandjCorporatejGovernance
Chapterj20:jStakeholderjCapitalismjandjResponsiblejBusinessj

Chapterj21:jUnderstandingjOptions
Chapterj22:jValuingjOptions
Chapterj23:jRealjOptionsj

Chapterj24:jCreditjRiskjandjthejValuejofjCorporatejDebt
Chapterj25:jThejManyjDifferentjKindsjofjDebt
Chapterj26:jLeasing

Chapterj27:jManagingjRisk
Chapterj28:jInternationaljFinancialjManagementj

Chapterj29:jFinancialjAnalysis
Chapterj30:jFinancialjPlanning
Chapterj31:jWorkingjCapitaljManagement

Chapterj32:jMergers
Chapterj33:jCorporatejRestructuringj

,Chapterj34:jConclusion:jWhatjWejDojandjDojNotjKnowjaboutjFinance




CHAPTERj1
IntroductionjtojCorporatejFinance


Thejvaluesjshownjinjthejsolutionsjmayjbejroundedjforjdisplayjpurposes.jHowever,jthejanswersjwerejderivedjus
ingjajspreadsheetjwithoutjanyjintermediatejrounding.


AnswersjtojProblemjSets

1. a. real

b. executivejairplanes

c. brandjnames

d. financial

e. bonds

*f. investmentjorjcapitaljexpenditure

*g. capitaljbudgetingjorjinvestment

h. financing

*Notejthatjfjandjgjarejinterchangeablejinjthejquestion.
Estjtime:j01-05



2. Ajtrademark,jajfactory,jundevelopedjland,jandjyourjworkjforcej(c,jd,je,jandjg)jarejalljrealjassets.jRealj
assetsjarejidentifiablejasjitemsjwithjintrinsicjvalue.jThejothersjinjthejlistjarejfinancialjassets,jthatjis,jth
esejassetsjderivejvaluejbecausejofjajcontractualjclaim.
Estjtime:j01-05



3. a.
Financialjassets,jsuchjasjstocksjorjbankjloans,jarejclaimsjheldjbyj investors.jCorpora
tionsjselljfinancialjassetsjtojraisejthejcashjtojinvestjinjrealjassetsjsuchjasjplantjandjequipm
ent.jSomejrealjassetsjarejintangible.

b. Capitaljexpenditurejmeansjinvestmentjinjrealjassets.jFinancingjmeansjraisingjthej cashjforj
thisjinvestment.

, c. Thejsharesjofjpublicjcorporationsjarejtradedjonjstockjexchangesjandjcanjbejpurchasedjbyja
jwidejrangej ofjinvestors.jThejsharesjofjcloselyjheldjcorporationsj arejnotj publiclyjtradedjandj
arejheldjbyjajsmalljgroupjofjprivatejinvestors.

d. Unlimitedjliability:jInvestorsjarejresponsiblejforjalljthejfirm‘sjdebts.jAjsolejproprietorjhasjunli
mitedjliability.jInvestorsjinjcorporationsjhavejlimitedjliability.jTheyjcanjlosejtheirjinvestment
,jbutjnojmore.
Estjtime:j01-05