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 D D



Chapter 1: Introduction to Corporate Finance
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Chapter 2: How to Calculate Present Value
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s Chapter 3: Valuing Bonds
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Chapter 4: Valuing Stocks
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Chapter 5: Net Present Value and Other Investment Criteria
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Chapter 6: Making Investment Decisions with the Net Present Value Rule
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Chapter 7: Introduction to Risk, Diversification, and Portfolio Selection
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cChapter 8: The Capital Asset Pricing Model
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Chapter 9: Risk and the Cost of Capital
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Chapter 10: Project Analysis c g




Chapt
c g 11: How to Ensure That Projects Truly Have PositiveNPVs
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er
Chapter 12: Efficient Markets and Behavioral Finance c g c g c g c g




Chapt
c g 13: An Overview of Corporate Financing H
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er Cha c g 14: ow Corporations Issue Securities c g c g c g




pter
Chapter 15: Payout Policy c g




Chapt
c g 16: Does Debt Policy Matter? c g c g c g




er Cha c g 17: How Much Should a Corporation Borrow?
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pter Ch c g 18: Financing and Valuation
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apter
Chapter 19: Agency Problems and Corporate Governance Sta c g c g c g c g c g




Chapt
c g 20: keholder Capitalism and Responsible Business c g c g c g c g




er
Chapter 21: Understanding Options c g




Chapt
c g 22: Valuing Options c g c g




er Cha c g 23: Real Options c g




pter
Chapter 24: Credit Risk and the Value of Corporate Debt c g c g c g c g c g c g c g c




Chapt
c g 25: The Many Different Kinds of Debt
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er Cha c g 26: Leasing
pter
Chapter 27: Managing Risk c g




Chapt
c g 28: International Financial Management c g c g




er
Chapter 29: Financial Analysis cg c




Chapt
c g 30: Financial Plannin g c g




er Cha c g 31: g
pter Working Capital Management c g c g




Chapter 32: Mergers
Chapt
c g 33: Corporate Restructuring c g




er
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,Chapter 34: Conclusion: What We Do and Do Not Know about Finance
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CHAPTER 1 cg




Introduction to Corporate Finance cg cg cg




The values shown in the solutions may be rounded for display purposes. However, the answers wer
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e derived using a spreadsheet without any intermediate rounding.
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Answers to Problem Setsc g c g c g




1. a. real cg




b. executive airplanes cg cg




c. brand names c g cg




d. financial cg




e. bonds cg




*f. investment or capital expenditure c g c g c g cg




*g.

capital budgeting or investment c g c g c g c




g h. financing cg




*Note that f and g are interchangeable in the question.
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Est time: 01-05
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2. A trademark, a factory, undeveloped land, and your work force (c, d, e, and g) are all rea
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l a ssets. Real assets are identifiable as items with intrinsic value. The others in the list
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are fina ncial assets,that is, these assets derive value because of a contractual claim.
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Est time: 01-05
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3. a.
Financial assets, such as stocks or bank loans, are claims held by investors
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. Corporations sell financial assets to raise the cash to invest in real assets su
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ch a s plantand equipment. Some real assets are intangible.
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b. Capital expenditure means investment in real assets. Financing means raising th
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cg

, e cashfor this investment.
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