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
VB VB



Chaptervb1:vbIntroductionvbtovbCorporatevbFinance
Chaptervb2:vbHowvbtovbCalculatevbPresentvbValues
Chaptervb3:vbValuingvbBonds
Chaptervb4:vbValuingvbStocks
Chaptervb5:vbNetvbPresentvbValuevbandvbOthervbInvestmentvbCriteria
Chaptervb6:vbMakingvbInvestmentvbDecisionsvbwithvbthevbNetvbPresentvbValuevbRulevb

Chaptervb7:vbIntroductionvbtovbRisk,vbDiversification,vbandvbPortfoliovbSelection
Chaptervb8:vbThevbCapitalvbAssetvbPricingvbModel
Chaptervb9:vbRiskvbandvbthevbCostvbofvbCapital

Chaptervb10:vbProjectvbAnalysis
Chaptervb11:vbHowvbtovbEnsurevbThatvbProjectsvbTrulyvbHavevbPositiveNPVsvb

Chaptervb12:vbEfficientvbMarketsvbandvbBehavioralvbFinance
Chaptervb13:vbAnvbOverviewvbofvbCorporatevbFinancing
Chaptervb14:vbHowvbCorporationsvbIssuevbSecuritiesvb

Chaptervb15:vbPayoutvbPolicy
Chaptervb16:vbDoesvbDebtvbPolicyvbMatter?
Chaptervb17:vbHowvbMuchvbShouldvbavbCorporationvbBorrow?
Chaptervb18:vbFinancingvbandvbValuationvb

Chaptervb19:vbAgencyvbProblemsvbandvbCorporatevbGovernance
Chaptervb20:vbStakeholdervbCapitalismvbandvbResponsiblevbBusinessvb

Chaptervb21:vbUnderstandingvbOptions
Chaptervb22:vbValuingvbOptions
Chaptervb23:vbRealvbOptionsvb

Chaptervb24:vbCreditvbRiskvbandvbthevbValuevbofvbCorporatevbDebt
Chaptervb25:vbThevbManyvbDifferentvbKindsvbofvbDebt
Chaptervb26:vbLeasing

Chaptervb27:vbManagingvbRisk
Chaptervb28:vbInternationalvbFinancialvbManagementvb

Chaptervb29:vbFinancialvbAnalysis
Chaptervb30:vbFinancialvbPlanning
Chaptervb31:vbWorkingvbCapitalvbManagement

Chaptervb32:vbMergers
Chaptervb33:vbCorporatevbRestructuringvb

,Chaptervb34:vbConclusion:vbWhatvbWevbDovbandvbDovbNotvbKnowvbaboutvbFinance




CHAPTERvb1
IntroductionvbtovbCorporatevbFinance


Thevbvaluesvbshownvbinvbthevbsolutionsvbmayvbbevbroundedvbforvbdisplayvbpurposes.vbHowever,vbthevbanswer
svbwerevbderivedvbusingvbavbspreadsheetvbwithoutvbanyvbintermediatevbrounding.


AnswersvbtovbProblemvbSets

1. a. real

b. executivevbairplanes

c. brandvbnames

d. financial

e. bonds

*f. investmentvborvbcapitalvbexpenditure

*g. capitalvbbudgetingvborvbinvestment

h. financing

*Notevbthatvbfvbandvbgvbarevbinterchangeablevbinvbthevbquestion.
Estvbtime:vb01-05



2. Avbtrademark,vbavbfactory,vbundevelopedvbland,vbandvbyourvbworkvbforcevb(c,vbd,vbe,vbandvbg)vbarevbal
lvbrealvbassets.vbRealvbassetsvbarevbidentifiablevbasvbitemsvbwithvbintrinsicvbvalue.vbThevbothersvbinvbt
hevblistvbarevbfinancialvbassets,vbthatvbis,vbthesevbassetsvbderivevbvaluevbbecausevbofvbavbcontractualvb
claim.
Estvbtime:vb01-05



3. a.
Financialvbassets,vbsuchvbasvbstocksvborvbbankvbloans,vbarevbclaimsvbheldvbbyvbinve
stors.vbCorporationsvbsellvbfinancialvbassetsvbtovbraisevbthevbcashvbtovbinvestvbinvbrealvbass
etsvbsuchvbasvbplantvbandvbequipment.vbSomevbrealvbassetsvbarevbintangible.

b. Capitalvbexpenditurevbmeansvbinvestmentvbinvbrealvbassets.vbFinancingvbmeansvbraisingvb

, thevb cashvbforvbthisvbinvestment.

c. Thevbsharesvbofvbpublicvbcorporationsvbarevbtradedvbonvbstockvbexchangesvbandvbcanvbbev
bpurchasedvbbyvbavbwidevbrangevbofvbinvestors.vbThevbsharesvbofvbcloselyvbheldvbcorporatio
nsvbarevbnotvb publiclyvbtradedvbandvbarevbheldvbbyvbavbsmallvbgroupvbofvbprivatevbinvestors
.

d. Unlimitedvbliability:vbInvestorsvbarevbresponsiblevbforvballvbthevbfirm‘svbdebts.vbAvbsolevbpro
prietorvbhasvbunlimitedvbliability.vbInvestorsvbinvbcorporationsvbhavevblimitedvbliability.vbThey
vbcanvblosevbtheirvbinvestment,vbbutvb novbmore.
Estvbtime:vb01-05