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

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


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 Cha
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pter 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 1x 1x 1x


Chapter 11: How to Ensure That Projects Truly Have PositiveNPVs
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Chapter 12: Efficient Markets and Behavioral Finance
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Chapter 13: An Overview of Corporate Financing Chap
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ter 14: How Corporations Issue Securities
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Chapter 1x 15: Payout Policy
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Chapter 1x 16: Does Debt Policy Matter?
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Chapter 1x 17: How Much Should a Corporation Borrow?
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Chapter 1x 18: Financing and Valuation
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Chapter 19: Agency Problems and Corporate Governance Ch
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apter 20: Stakeholder Capitalism and Responsible Business
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Chapter 21: Understanding Options
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Chapter 22: Valuing Options Chap
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ter 23: Real Options
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Chapter 24: Credit Risk and the Value of Corporate Debt Cha
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pter 25: The Many Different Kinds of Debt
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Chapter 26: Leasing 1x 1x




Chapter 27: Managing Risk 1x 1x 1x


Chapter 28: International Financial Management
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Chapter 29: Financial Analysis Cha
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pter 30: Financial Planning
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Chapter 31: Working Capital Management
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Chapter 32: Mergers 1x 1x


Chapter 33: Corporate Restructuring
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,Chapter 34: Conclusion: What We Do and Do Not Know about Finance
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CHAPTER 1 1x


Introduction to Corporate Finance 1x 1x 1x




The values shown in the solutions may be rounded forDdisplayDpurposes. However, the answer
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s were derived using a spreadsheet without any intermediate rounding.
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Answers to Problem Sets
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1. a. real

b. executive airplanes 1x




c. brand names 1x




d. financial

e. bonds

*f. investment or capital expenditure 1x 1x 1x




*g. capital budgeting or investment
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h. financing

*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 r
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eal a ssets. Real assets are identifiable as items with intrinsic value. The others in t
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he list are fina ncial assets, that is, these assets derive value because of a contra
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ctual claim. 1 x

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 asset
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s such a s plant and equipment. Some real assets are intangible.
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b. Capital expenditure means investment in real assets. Financing means raisi
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ng the cash for this investment.
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, c. The shares ofDpublic corporations are traded on stock exchanges and can b
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e purch ased by a wide range of investors. The shares of closely held cor
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porations are not publicly traded and are held by a small group of private
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investors.
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d. Unlimited liability: Investors are responsible for all the firm‘s debts. ADsole p
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roprieto r has unlimited liability. Investors in corporations have limited liability. They
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can lose their investment, but no more.
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Est time: 01-05
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