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
GT GT



Chaptergt1:gtIntroductiongttogtCorporategtFinance
Chaptergt2:gtHowgttogtCalculategtPresentgtValues
Chaptergt3:gtValuinggtBonds
Chaptergt4:gtValuinggtStocks
Chaptergt5:gtNetgtPresentgtValuegtandgtOthergtInvestmentgtCriteria
Chaptergt6:gtMakinggtInvestmentgtDecisionsgtwithgtthegtNetgtPresentgtValuegtRulegt

Chaptergt7:gtIntroductiongttogtRisk,gtDiversification,gtandgtPortfoliogtSelection
Chaptergt8:gtThegtCapitalgtAssetgtPricinggtModel
Chaptergt9:gtRiskgtandgtthegtCostgtofgtCapital

Chaptergt10:gtProjectgtAnalysis
Chaptergt11:gtHowgttogtEnsuregtThatgtProjectsgtTrulygtHavegtPositiveNPVsgt

Chaptergt12:gtEfficientgtMarketsgtandgtBehavioralgtFinance
Chaptergt13:gtAngtOverviewgtofgtCorporategtFinancing
Chaptergt14:gtHowgtCorporationsgtIssuegtSecuritiesgt

Chaptergt15:gtPayoutgtPolicy
Chaptergt16:gtDoesgtDebtgtPolicygtMatter?
Chaptergt17:gtHowgtMuchgtShouldgtagtCorporationgtBorrow?
Chaptergt18:gtFinancinggtandgtValuationgt

Chaptergt19:gtAgencygtProblemsgtandgtCorporategtGovernance
Chaptergt20:gtStakeholdergtCapitalismgtandgtResponsiblegtBusinessgt

Chaptergt21:gtUnderstandinggtOptions
Chaptergt22:gtValuinggtOptions
Chaptergt23:gtRealgtOptionsgt

Chaptergt24:gtCreditgtRiskgtandgtthegtValuegtofgtCorporategtDebt
Chaptergt25:gtThegtManygtDifferentgtKindsgtofgtDebt
Chaptergt26:gtLeasing

Chaptergt27:gtManaginggtRisk
Chaptergt28:gtInternationalgtFinancialgtManagementgt

Chaptergt29:gtFinancialgtAnalysis
Chaptergt30:gtFinancialgtPlanning
Chaptergt31:gtWorkinggtCapitalgtManagement

Chaptergt32:gtMergers
Chaptergt33:gtCorporategtRestructuringgt

,Chaptergt34:gtConclusion:gtWhatgtWegtDogtandgtDogtNotgtKnowgtaboutgtFinance




CHAPTERgt1
IntroductiongttogtCorporategtFinance


Thegtvaluesgtshowngtingtthegtsolutionsgtmaygtbegtroundedgtforgtdisplaygtpurposes.gtHowever,gtthegtanswersgtwe
regtderivedgtusinggtagtspreadsheetgtwithoutgtanygtintermediategtrounding.


AnswersgttogtProblemgtSets

1. a. real

b. executivegtairplanes

c. brandgtnames

d. financial

e. bonds

*f. investmentgtorgtcapitalgtexpenditure

*g. capitalgtbudgetinggtorgtinvestment

h. financing

*Notegtthatgtfgtandgtggtaregtinterchangeablegtingtthegtquestion.
Estgttime:gt01-05



2. Agttrademark,gtagtfactory,gtundevelopedgtland,gtandgtyourgtworkgtforcegt(c,gtd,gte,gtandgtg)gtaregtallgtrea
lgtassets.gtRealgtassetsgtaregtidentifiablegtasgtitemsgtwithgtintrinsicgtvalue.gtThegtothersgtingtthegtlistgtar
egtfinancialgtassets,gtthatgtis,gtthesegtassetsgtderivegtvaluegtbecausegtofgtagtcontractualgtclaim.
Estgttime:gt01-05



3. a.
Financialgtassets,gtsuchgtasgtstocksgtorgtbankgtloans,gtaregtclaimsgtheldgtbygtinvestor
s.gtCorporationsgtsellgtfinancialgtassetsgttogtraisegtthegtcashgttogtinvestgtingtrealgtassetsgtsuc
hgtasgtplantgtandgtequipment.gtSomegtrealgtassetsgtaregtintangible.

b. Capitalgtexpendituregtmeansgtinvestmentgtingtrealgtassets.gtFinancinggtmeansgtraisinggtthe
gt cashgtforgtthisgtinvestment.

, c. Thegtsharesgtofgtpublicgtcorporationsgtaregttradedgtongtstockgtexchangesgtandgtcangtbegtpur
chasedgtbygtagtwidegtrangegtofgtinvestors.gtThegtsharesgtofgtcloselygtheldgtcorporationsgtaregt
notgt publiclygttradedgtandgtaregtheldgtbygtagtsmallgtgroupgtofgtprivategtinvestors.

d. Unlimitedgtliability:gtInvestorsgtaregtresponsiblegtforgtallgtthegtfirm‘sgtdebts.gtAgtsolegtpropriet
orgthasgtunlimitedgtliability.gtInvestorsgtingtcorporationsgthavegtlimitedgtliability.gtTheygtcangtl
osegttheirgtinvestment,gtbutgtnogtmore.
Estgttime:gt01-05