Principles of corporate finance:
Gespeichert in:
| Hauptverfasser: | , , |
|---|---|
| Format: | Buch |
| Sprache: | English |
| Veröffentlicht: |
Boston [u.a.]
McGraw-Hill
2008
|
| Ausgabe: | 9. ed., internat. ed. |
| Schriftenreihe: | The McGraw-Hill/Irwin series in finance, insurance, and real estate : Financial management
|
| Schlagworte: | |
| Online-Zugang: | Inhaltsverzeichnis |
| Beschreibung: | 8. Aufl. u.d.T.: Brealey, Richard A.: Corporate finance |
| Beschreibung: | Getr. Zählung graph. Darst. |
| ISBN: | 9780071266758 9780071263276 |
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| 245 | 1 | 0 | |a Principles of corporate finance |c Richard A. Brealey ; Stewart C. Myers ; Franklin Allen |
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Datensatz im Suchindex
| _version_ | 1804137535445663744 |
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| adam_text | N I N T H E D I T I O N RICHARD A. BREALEY PROFESSOR OF FINANCE LONDON
BUSINESS SCHOOL STEWART C. MYERS ROBERT C. MERTON (1970) PROFESSOR OF
FINANCE SLOAN SCHOOL OF MANAGEMENT MASSACHUSETTS INSTITUTE OF TECHNOLOGY
FRANKLIN ALLEN NIPPON LIFE PROFESSOR OF FINANCE THE WHARTON SCHOOL
UNIVERSITY OF PENNSYLVANIA MC GRAW HILL BOSTON BURRRIDGE, IL DUBUQUE, IA
NEW YORK SAN FRANCISCO ST. LOUIS BANGKOK BOGOTA CARACAS KUALA LUMPUR
LISBON LONDON MADRID MEXICO CITY MILAN MONTREAL NEW DELHI SANTIAGO SEOUL
SINGAPORE SYDNEY TAIPEI TORONTO CONTENTS P A R T O N E VALUE 1 C HA P T
E R 1 FINANCE AND THE FINANCIAL MANAGER 2 1.1 WHAT IS A CORPORATION? 3
1.2 THE ROLE OF THE FINANCIAL MANAGER 4 1.3 WHO IS THE FINANCIAL
MANAGER? 6 1.4 SEPARATION OF OWNERSHIP AND MANAGEMENT 7 1.5 TOPICS
COVERED IN THIS BOOK 9 SUMMARY 10 FURTHER READING 10 CONCEPT REVIEW
QUESTIONS 11 QUIZ 11 C H A P T E R 2 PRESENT VALUES, THE OBJECTIVES OF
THE FIRM, AND CORPORATE GOVERNANCE 13 2.1 2.2 2.3 INTRODUCTION TO
PRESENT VALUE 14 CALCULATING FUTURE VALUE AND PRESENT VALUE /NET PRESENT
VALUE / RISK AND PRESENT VALUE / PRESENT VALUES AND RATES OF RETURN /
THE OPPORTUNITY COST OF CAPITAL / A SOURCE OFCONFUSION FOUNDATIONS OF
THE NET PRESENT VALUE RULE 19 HOW CAPITAL MARKETS RECONCILE PREFERENCES
FOR CURRENT US. FUTURE CONSUMPTION /A FUNDAMENTAL RESULT / OTHER
CORPORATE GOALS CORPORATE GOALS AND CORPORATE GOVERNANCE 23 SHOULD
MANAGERS LOOK AFTER THE INTERESTS OF SHAREHOLDERS? /SHOULD FIRNIS
BEMANAGEDFOR SHAREHOLDERS OR ALL STAKEHOLDERS? /ENRON, WORLDCOM, AND SOX
SUMMARY 29 FURTHER READING 31 CONCEPT REVIEW QUESTIONS 31 QUIZ 31
PRACTICE QUESTIONS 32 CHALLENGE QUESTION 34 C H A P T E R 3 HOW TO
CALCULATE PRESENT VALUES 35 3.1 VALUING LONG-LIVED ASSETS 35 VALUING
CASH FLOWS IN SEVERAL PERIODS / WHY THE DISCOUNT FACTOR DECLINES AS
FUTURITY INCREASES * AND A DIGRESSION ON MONEY MACHINES / CALCULATING
PVS AND NPVS 3.2 LOOKING FOR SHORTCUTS*PERPETUITIES AND ANNUITIES 40 HOW
TO VALUE PERPETUITIES /HOW TO VALUE ANNUITIES / PV ANNUITIES: AN EXAMPLE
/ PV ANNUITIES: ANOTHER EXAMPLE/PV ANNUITIES DUE / CALCULATING ANNUAL
PAYMENTS: AN EXAMPLE /FUTURE VALUE OFAN ANNUITY: AN EXAMPLE 3.3 MORE
SHORTCUTS*GROWING PERPETUITIES AND ANNUITIES 46 GROWING PERPETUITIES /
GROWING ANNUITIES 3.4 COMPOUND INTEREST AND PRESENT VALUES 48 A NOTE ON
COMPOUNDING INTERVALS / CONTINUOUS COMPOUNDING SUMMARY 53 WEB PROJECTS
54 CONCEPT REVIEW QUESTIONS 54 QUIZ 54 PRACTICE QUESTIONS 55 CHALLENGE
QUESTIONS 58 XVIII CONTENTS C H A P T E R 4 VALUING BONDS 59 4.1 USING
THE PRESENT VALUE FORMULA TO VALUE BONDS 60 A SHORT TRIP TO GERMANY TO
VALUE A GOVERNMENT BOND /BACK TO THE UNITED STATES: SEMIANNUAL COUPONS
AND BOND PRICES 4.2 HOW BOND PRICES VARY WITH INTEREST RATES 63 DURATION
AND BOND VOLATILITY / A CAUTIONARY NOTE 4.3 THE TERM STRUCTURE OF
INTEREST RATES 67 THE YIELD TO MATURITY AND THE TERM STRUCTURE /
MEASURING THE TERM STRUCTURE 4.4 EXPLAINING THE TERM STRUCTURE 69 THE
EXPECTATIONS THEORY / INTRODUCING RISK / INFLATION AND TERM STRUCTURE
4.5 REAL AND NOMINAL RATES OF INTEREST 72 INDEXED BONDS AND THE REAL
RATE OF INTEREST / INFLATION AND NOMINAL INTEREST RATES /HOW WELL DOES
FISHER S THEORY EXPLAIN INTEREST RATES? SUMMARY 78 FURTHER READING 79
WEB PROJECT 79 CONCEPT REVIEW QUESTIONS 80 QUIZ 80 PRACTICE QUESTIONS 82
CHALLENGE QUESTIONS 84 C H A P T E R 5 THE VALUE OF COMMON STOCKS 85 5.1
HOW COMMON STOCKS ARE TRADED 86 5.2 HOW COMMON STOCKS ARE VALUED 88
TODAY S PRICE/BUT WHAT DETERMINES NEXT YEAR S PRICE? 5.3 ESTIMATING THE
COST OF EQUITY CAPITAL 92 USING THE DCF MODEL TO SET GAS AND ELECTRICITY
PRICES / DANGERS LURK IN CONSTANT-GROWTH FORMULAS 5.4 THE LINK BETWEEN
STOCK PRICE AND EARNINGS PER SHARE 98 CALCULATING THE PRESENT VALUE
OFGROWTH OPPORTUNITIES FOR FLEDGLING ELECTRONICS / EXAMPLES OFGROWTH
OPPORTUNITIES 5.5 VALUING A BUSINESS BY DISCOUNTED CASH FLOW 102 VALUING
THE CONCATENATOR BUSINESS / VALUATION FORMAT ESTIMATING HORIZON VALUE /
A FURTHER REALITY CHECK SUMMARY 106 FURTHER READING 108 CONCEPT REVIEW
QUESTIONS 108 QUIZ 108 PRACTICE QUESTIONS 109 CHALLENGE QUESTIONS 112
MINI-CASE: REEBY SPORTS 113 C H A P T E R 6 WHY NET PRESENT VALUE LEADS
TO BETTER INVESTMENT DECISIONS THAN OTHER CRITERIA 115 6.1 A REVIEW OF
THE BASICS 116 NET PRESENT VALUE S COMPETITORS / THREE POINTS TO
REMEMBER ABOUT NPV /NPV DEPENDS ON CASH FLOW, NOT ON BOOK RETURNS 6.2
PAYBACK 120 THE PAYBACK RULE 6.3 INTERNAL (OR DISCOUNTED-CASH-FLOW) RATE
OF RETURN 121 CALCULATING THE IRR / THE IRR RULE/PITFALL L~LENDING OR
BORROWING? /PITFALL 2 * MULTIPLE RATES OF RETURN / PITF ALL 3 * MUTUALLY
EXCLUSIVE PROJECTS / PITFALL 4 * WHAT HAPPENS WHEN WE CAN T FINESSE THE
TERM STRUCTURE OF INTEREST RATES? /THE VERDICT ON IRR 6.4 CHOOSING
CAPITAL INVESTMENTS WHEN RESOURCES ARE LIMITED 131 AN EASY PROBLEM IN
CAPITAL RATIONING / USES OF CAPITAL RATIONING MODELS SUMMARY 134 FURTHER
READING 135 CONCEPT REVIEW QUESTIONS 136 QUIZ 136 PRACTICE QUESTIONS 137
CHALLENGE QUESTIONS 139 MINI-CASE: VEGETRON S CFO CALLS AGAIN 140 C H A
P T E R 7 MAKING INVESTMENT DECISIONS WITH THE NET PRESENT VALUE RULE
142 7.1 APPLYING THE NET PRESENT VALUE RULE 143 ONLY CASH FLOW IS
RELEVANT / ESTIMATE CASH FLOWS ON AN INCREMENTAL BASIS / TREAT INFLATION
CONSISTENTLY 7.2 EXAMPLE*IM&C S FERTILIZER PROJECT 147 SEPARATING
INVESTMENT AND FINANCING DECISIONS / INVESTMENTS IN WORKING CAPITAL / A
FURTHER NOTE ON DEPRECIATION IA FINAL COMMENT ON TAXES / PROJECT
ANALYSIS / CALCULATING NPV IN OTHER COUNTRIES AND GURRENDES 7.3
EQUIVALENT ANNUAL COSTS 155 INVESTING TO PRODUCE REFORMULATED GASOLINE
AT CALIFORNIA REFINERIES / CHOOSING BETWEEN LONG- AND SHORT-LIVED
EAUIPMENT / DECIDING WHEN TO REPLACE AN EXISTING MACHINE XIX CONTENTS
SUMMARY 160 CONCEPT REVIEW QUESTIONS 161 QUIZ 161 PRACTICE QUESTIONS 163
CHALLENGE QUESTIONS 167 MINI-CASE: NEW ECONOMY TRANSPORT (A) AND (B) 168
P A R T T W O RISK 171 C H A P T E R 8 INTRODUCTION TO RISK, RETURN, AND
THE OPPORTUNITY COST OF CAPITAL 172 8.1 OVER A CENTURY OF CAPITAL MARKET
HISTORY IN ONE EASY LESSON 172 ARITHMETIC AVERAGES AND COMPOUND ANNUAL
RETURNS / USING HISTORICAL EVIDENCE TO EVALUATE TODAY S COST OF CAPITAL
I DIVIDEND YIELDS AND THE RISK PREMIUM 8.2 MEASURING PORTFOLIO RISK 180
VARIANCE AND STANDARD DEVIATION /MEASURING VARIABILITY / HOW
DIVERSISSCATION REDUCES RISK 8.3 CALCULATING PORTFOLIO RISK 189 GENERAL
FORMULAFOR COMPUTING PORTFOLIO RISK /LIMITS TO DIVERSIFICATION 8.4 HOW
INDIVIDUAL SECURITIES AFFECT PORTFOLIO RISK 193 MARKET RISK IS MEASURED
BY BETA / WHY SECURITY BETAS DETERMINE PORTFOLIO RISK 8.5
DIVERSIFICATION AND VALUE ADDITIVITY 197 SUMMARY 198 FURTHER READING 199
CONCEPT REVIEW QUESTIONS 199 QUIZ 200 PRACTICE QUESTIONS 201 CHALLENGE
QUESTIONS 204 C H A P T E R 9 RISK AND RETURN 206 9.1 HARRY MARKOWITZ
AND THE BIRTH OF PORTFOLIO THEORY 206 COMBINING STOCKS INTO PORTFOLIOS /
WE INTRODUCE BORROWING AND LENDING 9.2 THE RELATIONSHIP BETWEEN RISK AND
RETURN 213 SOME ESTIMATES OFEXPECTED RETURNS / REVIEW OFTHE CAPITAL
ASSET PRICING MODEL / WHAT IFA STOCK DID NOT HIE ON THE SECURITY MARKET
LINE? 9.3 VALIDITY AND ROLE OF THE CAPITAL ASSET PRICING MODEL 217 TESTS
OFTHE CAPITAL ASSET PRICING MODEL / ASSUMPTIONS BEHIND THE CAPITAL ASSET
PRICING MODEL 9.4 SOME ALTERNATIVE THEORIES 222 CONSUMPTION BETAS VERSUS
MARKET BETAS /ARBITRAGE PRICING THEORY / A COMPARISON OFTHE CAPITAL
ASSET PRICING MODEL AND ARBITRAGE PRICING THEORY / THE THREE-FACTOR
MODEL SUMMARY 227 FURTHER READING 228 CONCEPT REVIEW QUESTIONS 229 QUIZ
229 PRACTICE QUESTIONS 231 CHALLENGE QUESTIONS 235 MINI-CASE: JOHN AND
MARSHA ON PORTFOLIO SELECTION 236 C H A P T E R 10 CAPITAL BUDGETING AND
RISK 238 10.1 COMPANY AND PROJECT COSTS OF CAPITAL 239 PERFECT PITCH AND
THE COST OF CAPITAL / DEBT AND THE COMPANY COST OF CAPITAL 10.2
MEASURING THE COST OF EQUITY 242 ESTIMATING BETA / THE EXPECTED RETURN
ON UNION PACIFIC CORPORATION S COMMON STOCK 10.3 SETTING DISCOUNT RATES
WHEN YOU DON T HAVE A BETA 246 AVOID FUDGE FACTORS IN DISCOUNT RATES /
WHAT DETERMINES ASSET BETAS? 10.4 CERTAINTY EQUIVALENTS*ANOTHER WAY TO
ADJUST FOR RISK 250 VALUATION BY CERTAINTY EQUIVALENTS / WHEN TO USE A
SINGLE RISK-ADJUSTED DISCOUNT RATE FOR LONG-LIVED ASSETS / A COMMON
MISTAKE / WHEN YOU CANNOT USE A SINGLE RISK-ADJUSTED DISCOUNT RATE FOR
LONG- LIVED ASSETS 10.5 DISCOUNT RATES FOR INTERNATIONAL PROJECTS 255
FOREIGN INVESTMENTS ARE NOT ALWAYS RISKIER I FOREIGN INVESTMENT IN THE
UNITED STATES /DO SOME COUNTRIES HAVE A LOWER COST OF CAPITAL? SUMMARY
258 FURTHER READING 259 CONCEPT REVIEW QUESTIONS 259 QUIZ 260 PRACTICE
QUESTIONS 260 CHALLENGE QUESTIONS 264 MINI-CASE: THE JONES FAMILY,
INCORPORATED 264 XX CONTENTS P A R T T H R E E BEST PRACTICES IN CAPITAL
BUDGETING 267 C H A P T E R 11 PROJECT ANALYSIS 268 11.1 THE CAPITAL
INVESTMENT PROCESS 269 PROJECT AUTHORIZATIONS * AND THE PROBLEM OFBIASED
FORECASTS /POSTAUDITS 11.2 SENSITIVITY ANALYSIS 271 VALUE OF INFORMATION
I LIMITS TO SENSITIVITY ANALYSIS / SCENARIO ANALYSIS / BREAK-EVEN
ANALYSIS / OPERATING LEVERAGE AND BREAK-EVEN POINTS 11.3 MONTE CARLO
SIMULATION 278 SIMULATING THE ELECTRIC SCOOTER PROJECT / SIMULATION OF
PHARMACEUTICAL RESEARCH AND DEVELOPMENT 11.4 REAL OPTIONS AND DECISION
TREES 283 THE OPTION TO EXPAND / THE OPTION TO ABANDON / PRODUCTION
OPTIONS I TIMING OPTIONS /MORE ON DECISION TREES /AN EXAMPLE: MAGNA
CHARTER /PRO AND CON DECISION TREES /DECISION TREES AND MONTE CARLO
SIMULATION SUMMARY 294 FURTHER READING 295 CONCEPT REVIEW QUESTIONS 295
QUIZ 295 PRACTICE QUESTIONS 296 CHALLENGE QUESTIONS 299 MINI-CASE: WALDO
COUNTY 299 C H A P T E R 12 INVESTMENT, STRATEGY, AND ECONOMIC RENTS 302
12.1 LOOK FIRST TO MARKET VALUES 303 THE CADILLAC AND THE MOVIE STAR /
EXAMPLE: INVESTING IN A NEW DEPARTMENT STORE / ANOTHER EXAMPLE: OPENING
A GOLD MINE 12.2 ECONOMIC RENTS AND COMPETITIVE ADVANTAGE 308 HOW ONE
COMPANY AVOIDED A $100 MILLION MISTAKE 12.3 EXAMPLE: MARVIN ENTERPRISES
DECIDES TO EXPLOIT A NEW TECHNOLOGY 311 PORECASTING PRICES OFGARGLE
BLASTERS /THE VALUE OF MARVIN S NEW EXPANSION /ALTERNATIVE EXPANSION
PLANS / THE VALUE OF MARVIN STOCK / THE LESSONS OF MARVIN ENTERPRISES
SUMMARY 319 FURTHER READING 319 CONCEPT REVIEW QUESTIONS 320 QUIZ 320
PRACTICE QUESTIONS 321 CHALLENGE QUESTIONS 323 MINI-CASE: ECSY-COLA 325
C H A P T E R 13 AGENCY PROBLEMS, MANAGEMENT COMPENSATION, AND THE
MEASUREMENT OF PERFORMANCE 327 13.1 INCENTIVES AND COMPENSATION 328
AGENCY PROBLEMS IN CAPITAL BUDGETING /MONITORING / MANAGEMENT
COMPENSATION 13.2 MEASURING AND REWARDING PERFORMANCE: RESIDUAL INCOME
AND EVA 333 PROS AND CONS OFEVA 13.3 BIASES IN ACCOUNTING MEASURES OF
PERFORMANCE 337 EXAMPLE: MEASURING THE PROFITABILITY OFTHE NODHEAD
SUPERMARKET /MEASURING ECONOMIC PROFITABILITY /DO THE BIASES WASH OUT IN
THE LONG RUN? / WHAT CAN WE DO ABOUT BIASES IN ACCOUNTING PROFITABILITY
MEASURES? /EARNINGS AND EARNINGS TARGETS SUMMARY 345 FURTHER READING 346
CONCEPT REVIEW QUESTIONS 347 QUIZ 347 PRACTICE QUESTIONS 348 CHALLENGE
QUESTIONS 350 P A R T F O U R FINANCING DECISIONS - AND MARKET
EFFICIENCY 351 C H A P T E R 14 EFFICIENT MARKETS AND BEHAVIORAL FINANCE
352 14.1 WE ALWAYS COME BACK TO NPV 353 DIFFERENCES BETWEEN INVESTMENT
AND FINANCING DECISIONS 14.2 WHAT IS AN EFFICIENT MARKET? 355 A
STARTLING DISCOVERY: PRICE CHANGES ARE RANDOM / THREE FORMS OF MARKET
EFFICIENCY / EFFICIENT MARKETS: THE EVIDENCE 14.3 THE EVIDENCE AGAINST
MARKET EFFICIENCY 363 DO INVESTORS RESPOND SLOWLY TO NEW INFORMATION?
/ARE STOCK PRICES DETERMINED BY FUNDAMENTALS? / THE DOT.COM BOOM AND
RELATIVE EFFICIENCY 14.4 BEHAVIORAL FINANCE 369 LIMITS TO ARBITRAGE /
BEHAVIORAL FINANCE AND MARKET EFFICIENCY * XXI CONTENTS 14.5 THE SIX
LESSONS OF MARKET EFFICIENCY 372 LESSON 1: MARKETS HAVE NO MEMORY /
LESSON 2: TRUST MARKET PRICES /LESSON 3: READ THE ENTRAILS /LESSON 4:
THERE ARE NO FINANCIAL ILLUSIONS / LESSON 5: THE DO-IT- YOURSELF
ALTERNATIVE / LESSON 6: SEEN ONE STOCK, SEEN THERN ALL / WHAT IF MARKETS
ARE NOT EFFICIENT? IMPLICATIONS FOR THE FINANCIAL MANAGER SUMMARY 378
FURTHER READING 379 CONCEPT REVIEW QUESTIONS 380 QUIZ 380 PRACTICE
QUESTIONS 381 CHALLENGE QUESTIONS 383 C H A P T E R 15 AN OVERVIEW OF
CORPORATE FINANCING 385 15.1 PATTERNS OF CORPORATE FINANCING 386 DO
FIRNIS RELY TOO MUCH ON INTERNAL FUNDS? /HOW MACH DO FIRMS BORROW? 15.2
COMMON STOCK 390 OWNERSHIP OFTHE CORPORATION / VOTING PROCEDURES AND THE
VALUE OF VOTES / EQUITY IN DISGUISE / PREFERRED STOCK 15.3 DEBT 396 DEBT
COMES IN MANY FORMS / A DEBT BY ANY OTHER NAME / VARIETY S THE VERY
SPIEE OFLIFE 15.4 FINANCIAL MARKETS AND INSTITUTIONS 400 FINANCIAL
INSTITUTIONS SUMMARY 402 FURTHER READING 403 WEB PROJECTS 404 CONCEPT
REVIEW QUESTIONS 404 QUIZ 404 PRACTICE QUESTIONS 405 CHALLENGE QUESTION
406 C H A P T E R 16 HOW CORPORATIONS ISSUE SECURITIES 407 16.1 VENTURE
CAPITAL 408 THE VENTURE CAPITAL MARKET 16.2 THE INITIAL PUBLIC OFFERING
412 ARRANGING AN INITIAL PUBLIC OFFERING I THE SAELE OF MARVIN STOCK /
THE UNDERWRITERS / COSTS OF A NEW ISSUE I UNDERPRICING OFIPOS /HOT
NEW-ISSUE PERIODS 16.3 OTHER NEW-ISSUE PROCEDURES 422 TYPES OF AUCTION
16.4 SECURITY SALES BY PUBLIC COMPANIES 424 GENERAL CASH OFFERS
/INTERNATIONAL SECURITY ISSUES / THE COSTS OF A GENERAL CASH OFF ER /
MARKET REACTION TO STOCK ISSUES /RIGHTS ISSUES 16.5 PRIVATE PLACEMENTS
AND PUBLIC ISSUES 430 SUMMARY 430 FURTHER READING 431 WEB PROJECT 432
CONCEPT REVIEW QUESTIONS 432 QUIZ 432 PRACTICE QUESTIONS 434 CHALLENGE
QUESTIONS 435 APPENDIX: MARVIN S NEW-ISSUE PROSPECTUS 436 P A R T F I V
E PAYOUT POLICY AND CAPITAL STRUCTURE 441 C H A P T E R 17 PAYOUT POLICY
442 17.1 THE CHOICE OF PAYOUT POLICY 443 17.2 HOW FIRMS PAY DIVIDENDS
AND REPURCHASE STOCK 444 HOW FIRMS REPURCHASE STOCK 17.3 HOW DO
COMPANIES DECIDE ON THE PAYOUT? 446 17.4 THE INFORMATION IN DIVIDENDS
AND STOCK REPURCHASES 447 THE INFORMATION CONTENT OFSHARE REPURCHASE
17.5 THE PAYOUT CONTROVERSY 450 DIVIDEND POLICY IS IRRELEVANT IN PERFECT
CAPITAL MARKETS / DIVIDEND IRRELEVANCE * AN ILLUSTRATION I CALCULATING
SHARE PRICE / STOCK REPURCHASE / STOCK REPURCHASE AND VALUATION 17.6 THE
RIGHTISTS 455 PAYOUT POLICY, INVESTMENT POLICY, AND MANAGEMENT
INCENTIVES 17.7 TAXES AND THE RADICAL LEFT 457 WHY PAY ANY DIVIDENDS AT
ALL? / EMPIRICAL EVIDENCE ON DIVIDENDS AND TAXES /THE TAXATION OF
DIVIDENDS AND CAPITAL GAINS 17.8 THE MIDDLE-OF-THE-ROADERS 461
ALTERNATIVE TAX SYSTEMS SUMMARY 464 FURTHER READING 465 CONCEPT REVIEW
QUESTIONS 466 QUIZ 466 PRACTICE QUESTIONS 467 CHALLENGE QUESTIONS 470
XXN CONTENTS C H A P T E R 18 DOES DEBT POLICY MATTER? 472 18.1 THE
EFFECT OF FINANCIAL LEVERAGE IN A COMPETITIVE TAX-FREE ECONOMY 473 ENTER
MODIGLIANI AND MILLER / THE LAW OF CONSERVATION OF VALUE I AN EXAMPLE OF
PROPOSITION 1 18.2 FINANCIAL RISK AND EXPECTED RETURNS 479 PROPOSITION 2
/HOW CHANGING CAPITAL STRUCTURE AFFECTS BETA 18.3 THE WEIGHTED-AVERAGE
COST OF CAPITAL 483 TWO WARNINGS / RATES OF RETURN ON LEVERED EQUITY *
THE TRADITIONAL POSITION / TODAY S UNSATISFIED CLIENTEIES ARE PROBABLY
INTERESTED IN EXOTIC SECURITIES / IMPERFECTIONS AND OPPORTUNITIES 18.4 A
FINAL WORD ON THE AFTER-TAX WEIGHTED-AVERAGE COST OF CAPITAL 488 UNION
PACIFIC S WACC SUMMARY 489 FURTHER READING 490 CONCEPT REVIEW QUESTIONS
491 QUIZ 491 PRACTICE QUESTIONS 493 CHALLENGE QUESTIONS 495 C H A P T E
R 19 HOW MUCH SHOULD A FIRM BORROW? 496 19.1 CORPORATE TAXES 497 HOW DO
INTEREST TAX SHIELDS CONTRIBUTE TO THE VALUE OF STOCKHOLDERS EQUITY?
/RECASTING MERCK S CAPITAL STRUCTURE /MM AND TAXES 19.2 CORPORATE AND
PERSONAL TAXES 501 19.3 COSTS OF FINANCIAL DISTRESS 503 BANKRUPTCY COSTS
/ EVIDENTE ON BANKRUPTCY COSTS / DIRECT VERSUS INDIRECT COSTS OF
BANKRUPTCY / FINANCIAL DISTRESS WITHOUT BANKRUPTCY / DEBT AND INCENTIVES
/ RISK SHIFTING: THE FIRST GAME / REFUSING TO CONTRIBUTE EQUITY CAPITAL:
THE SECOND GAME /AND THREE MORE GAMES, BRIEFLY / WHAT THE GAMES COST /
COSTS OF DISTRESS VARY WITH TYPE OFASSET / THE TRADE-OFF THEORY OF
CAPITAL STRUCTURE 19 .4 THE PECKING ORDER OF FINANCING CHOICES 517 DEBT
AND EQUITY ISSUES WITH ASYMMETRIE INFORMATION / IMPLICATIONS OF THE
PECKING ORDER / THE TRADE-OFF THEORY VS. THE PECKING-ORDER THEORY * SOME
RECENT TESTS / THE BRIGHT SIDE AND THE DARK SIDE OF FINANCIAL SLACK
SUMMARY 522 FURTHER READING 524 CONCEPT REVIEW QUESTIONS 524 QUIZ 524
PRACTICE QUESTIONS 525 CHALLENGE QUESTIONS 528 C H A P T E R 20
FINANCING AND VALUATION 529 20.1 THE AFTER-TAX WEIGHTED-AVERAGE COST OF
CAPITAL 530 EXAMPLE: SANGRIA CORPORATION /REVIEW OF ASSUMPTIONS 20.2
VALUING BUSINESSES 533 VALUING RIO CORPORATION / ESTIMATING HORIZON
VALUE / WACC VS. THE FLOW-TO-EQUITY METHOD 20.3 USING WACC IN PRACTICE
538 SOME TRICKS OFTHE TRADE /MISTAKES PEOPLE MAKE IN USING THE
WEIGHTED-AVERAGE FORMULA / ADJUSTING WACC WHEN DEBT RATIOS OR BUSINESS
RISKS DIFFER / UNLEVERING AND RELEVERING BETAS / THE IMPORTANCE OF
REBALANCING / THE MODIGLIANI-MILLER FORMULA, PLUS SOME FINAL ADVICE 20.4
ADJUSTED PRESENT VALUE 546 APVFOR THE PERPETUAL CRUSHER / OTHER
FINANCING SIDE EFFECTS /APVFOR BUSINESSES /APVFOR INTERNATIONAL
INVESTMENTS 20.5 YOUR QUESTIONS ANSWERED 550 SUMMARY 552 FURTHER READING
554 CONCEPT REVIEW QUESTIONS 554 QUIZ 554 PRACTICE QUESTIONS 555
CHALLENGE QUESTIONS 559 APPENDIX: DISCOUNTING SAFE, NOMINAL CASH FLOWS
559 P A R T S I X OPTIONS 563 C H A P T E R 21 UNDERSTANDING OPTIONS 564
21.1 CALLS, PUTS, AND SHARES 565 CALL OPTIONS AND POSITION DIAGRAMS /
PUT OPTIONS / SELLING CALLS, PUTS, AND SHARES / POSITION DIAGRAMS ARE
NOT PROFIT DIAGRAMS 21.2 FINANCIAL ALCHEMY WITH OPTIONS 569 SPOTTING THE
OPTION 21.3 WHAT DETERMINES OPTION VALUES? 576 RISK AND OPTION VALUES
SUMMARY 582 FURTHER READING 582 CONCEPT REVIEW QUESTIONS 582 .* XXI N
CONTENTS QUIZ 583 PRACTICE QUESTIONS 584 CHALLENGE QUESTIONS 586 C H A P
T E R 22 VALUING OPTIONS 588 22.1 A SIMPLE OPTION-VALUATION MODEL 589
WHY DISCOUNTED CASH FLOW WON T WORK FOR OPTIONS / CONSTRUCTING OPTION
EQUIVALENTS FROM COMMON STOCKS AND BORROWING / VALUING THE GENENTECH PUT
OPTION 22.2 THE BINOMIAL METHOD FOR VALUING OPTIONS 593 EXAMPLE: THE
TWO-STAGE BINOMIAL METHOD / THE GENERAL BINOMIAL METHOD / THE BINOMIAL
METHOD AND DECISION TREES 22.3 THE BLACK-SCHOLES FORMULA 599 USING THE
BLACK-SCHOLES FORMULA / THE BLACK-SCHOLES FORMULA AND THE BINOMIAL
METHOD IIA BLACK-SCHOLES IN ACTION 603 EXECUTIVE STOCK OPTIONS /
WARRANTS / PORTFOLIO INSURANCE / CALCULATING IMPLIED VOLATILITIES 22.5
OPTION VALUES AT A GLANCE 606 22.6 THE OPTION MENAGERIE 608 SUMMARY 608
FURTHER READING 609 CONCEPT REVIEW QUESTIONS 609 QUIZ 609 PRACTICE
QUESTIONS 610 CHALLENGE QUESTIONS 613 MINI-CASE: BRUCE HONIBALL S
INVENTION 613 APPENDIX: HOW DILUTION AFFECTS OPTION VALUE 615 C H A P T
E R 23 REAL OPTIONS 619 23.1 THE VALUE OF FOLLOW-ON INVESTMENT
OPPORTUNITIES 620 QUESTIONS AND ANSWERS ABOUT BLITZEN S MARK II / OTHER
EXPANSION OPTIONS 23.2 THE TIMING OPTION 624 VALUING THE MALTED HERRING
OPTION / OPTIMAL TIMING FOR REAL ESTATE DEVELOPMENT 23.3 THE ABANDONMENT
OPTION 627 THE ZIRCON SUBDUCTOR PROJECT /ABANDONMENT VALUE AND PROJECT
LIFE / TEMPORARY ABANDONMENT 23.4 FLEXIBLE PRODUCTION 632 23.5 AIRCRAFT
PURCHASE OPTIONS 634 23.6 A CONCEPTUAL PROBLEM? 636 PRACTICA! CHALLENGES
SUMMARY 638 FURTHER READING 638 CONCEPT REVIEW QUESTIONS 639 QUIZ 639
PRACTICE QUESTIONS 640 CHALLENGE QUESTIONS 642 P A R T S E V E N DEBT
FINANCING 645 C H A P T E R 24 CREDIT RISK AND THE VALUE OF CORPORATE
DEBT 646 24.1 YIELDS ON CORPORATE DEBT 647 WHAT DETERMINES THE YIELD
SPREAD? 24.2 THE OPTION TO DEFAULT 651 VALUING THE DEFAULT OPTION /
VALUING GOVERNMENT LOAN GUARANTEES 24.3 BOND RATINGS AND THE PROBABILITY
OF DEFAULT 656 24.4 PREDICTING THE PROBABILITY OF DEFAULT 658 CREDIT
SCORING / MARKET-BASED RISK MODELS 24.5 VALUE AT RISK 663 SUMMARY 664
FURTHER READING 665 CONCEPT REVIEW QUESTIONS 665 QUIZ 665 PRACTICE
QUESTIONS 666 CHALLENGE QUESTIONS 666 C H A P T E R 25 THE MANY
DIFFERENT KINDS OF DEBT 667 25.1 DOMESTIC BONDS, FOREIGN BONDS, AND
EUROBONDS 668 25.2 THE BOND CONTRACT 669 INDENTURE, OR TRUST DEED / THE
BOND TERMS 25.3 SECURITY AND SENIORITY 671 ASSET-BACKED SECURITIES 25.4
REPAYMENT PROVISIONS 674 SINKING FUNDS / CALL PROVISIONS 25.5 DEBT
COVENANTS 676 25.6 CONVERTIBLE BONDS AND WARRANTS 678 THE VALUE OF A
CONVERTIBLE AT MATURITY / FORCING CONVERSION / WHY DO COMPANIES ISSUE
CONVERTIBLES? / VALUING CONVERTIBLE BONDS IA VARIATION ON CONVERTIBLE
BONDS: MANDATORY CONVERTIBLES I ANOTHER VARIATION ON CONVERTIBLE BONDS:
THE BOND-WARRANT PACKAGE XXIV CONTENTS 25.7 PRIVATE PLACEMENTS AND
PROJECT FINANCE 684 PROJECT FINANCE / PROJECT FINANCE * SOME COMMON
FEATURES / THE ROLE OF PROJECT FINANCE 25.8 INNOVATION IN THE BOND
MARKET 688 SUMMARY 691 FURTHER READING 692 CONCEPT REVIEW QUESTIONS 692
QUIZ 692 PRACTICE QUESTIONS 694 CHALLENGE QUESTIONS 696 MINI-CASE: THE
SHOCKING DEMISE OF MR. THORNDIKE 697 C H A P T E R 26 LEASING 698 26.1
WHAT IS A LEASE? 698 26.2 WHY LEASE? 699 SENSIBLE REASONSFOR LEASING /
SOME DUBIOUS REASONS FOR LEASING 26.3 OPERATING LEASES 703 EXAMPLE OFAN
OPERATING LEASE /LEASE OR BUY? 26.4 VALUING FINANCIAL LEASES 706 EXAMPLE
OF A FINANCIAL LEASE / WHO REALLY OWNS THE LEASED ASSET? / LEASING AND
THE INTERNAL REVENUE SERVICE / A FIRST PASS AT VALUING A LEASE CONTRACT
/ THE STORY SO FAR 26.5 WHEN DO FINANCIAL LEASES PAY? 712 LEASING AROUND
THE WORLD 26.6 LEVERAGED LEASES 713 SUMMARY 714 FURTHER READING 715
CONCEPT REVIEW QUESTIONS 716 QUIZ 716 PRACTICE QUESTIONS 717 CHALLENGE
QUESTIONS 719 P A R T E I G H T RISK MANAGEMENT 721 C H A P T E R 27
MANAGING RISK 722 27.1 WHY MANAGE RISK? 722 REDUCING THE RISK OFCASH
SHORTFALLS OR FINANCIAL DISTRESS / AGENCY COSTS MAY BE MITIGATED BY RISK
MANAGEMENT / THE EVIDENCE ON RISK MANAGEMENT 27.2 INSURANCE 726 HOW BP
CHANGED ITS INSURANCE STRATEGY 27.3 FORWARD AND FUTURES CONTRACTS 729 A
SIMPLE FORWARD CONTRACT / FUTURES EXCHANGES / THE MECHANICS OF FUTURES
TRADING / TRADING AND PRICING FINANCIAL FUTURES CONTRACTS / SPOT AND
FUTURES PRICES * COMMODITIES /MORE ABOUT FORWARD CONTRACTS /HOMEMADE
FORWARD RATE CONTRACTS TIA SWAPS 736 INTEREST RATE SWAPS / CURRENCY
SWAPS / SWAPS 27.5 HOW TO SET UP A HEDGE 741 USING THEORY TO SET UP THE
HEDGE: AN EXAMPLE / OPTIONS, DELTAS, AND BETAS 27.6 IS DERIVATIVE A
FOUR-LETTER WORD? 744 SUMMARY 747 FURTHER READING 748 CONCEPT REVIEW
QUESTIONS 748 QUIZ 749 PRACTICE QUESTIONS 750 CHALLENGE QUESTIONS 754 C
H A P T E R 28 MANAGING INTERNATIONAL RISKS 755 28.1 THE FOREIGN
EXCHANGE MARKET 755 28.2 SOME BASIC RELATIONSHIPS 757 INTEREST RATES AND
EXCHANGE RATES / THE FORWARD PREMIUM AND CHANGES IN SPOT RATES / CHANGES
IN THE EXCHANGE RATE AND INFLATION RATES / INTEREST RATES AND INFLATION
RATES /IS LIFE REALLY THAT SIMPLE? 28.3 HEDGING CURRENCY RISK 767
TRANSACTION EXPOSURE AND ECONOMIC EXPOSURE / CURRENCY SPECULATION 28.4
EXCHANGE RISK AND INTERNATIONAL INVESTMENT DECISIONS 771 MORE ABOUT THE
COST OF CAPITAL 28.5 POLITICAL RISK 774 SUMMARY 776 FURTHER READING 777
WEB PROJECT 778 CONCEPT REVIEW QUESTIONS 778 QUIZ 778 PRACTICE QUESTIONS
780 CHALLENGE QUESTIONS 782 MINI-CASE: EXACTA, S.A. 782 CONTENTS P A R T
N I N E FINANCIAL PLANNING AND THE MANAGEMENT OF WORKING CAPITAL 785 C H
A P T E R 29 FINANCIAL ANALYSIS AND PLANNING 786 29.1 FINANCIAL
STATEMENTS 787 29.2 EXECUTIVE PAPER S FINANCIAL STATEMENTS 787 THE
BALANCE SHEET / THE INCOME STATEMENT / SOURCES AND USES OF FUNDS 29.3
MEASURING EXECUTIVE PAPER S FINANCIAL CONDITION 792 HOW MUCH HAS
EXECUTIVE PAPER BORROWED? /HOW LIQUID IS EXECUTIVE PAPER? /HOW
PRODUCTIVELY IS EXECUTIVE PAPER USING ITS ASSETS? /HOW PROFITABLE IS
EXECUTIVE PAPER? /HOW HIGHLY IS EXECUTIVE PAPER VALUED BY INVESTORS?
/THE DUPONT SYSTEM/INDUSTRY COMPARISONS 29.4 FINANCIAL PLANNING 804 29.5
FINANCIAL PLANNING MODELS 804 PITFALLS IN MODEL DESIGN / THERE IS NO
FINANCE IN FINANCIAL PLANNING MODELS 29.6 GROWTH AND EXTERNAL FINANCING
807 SUMMARY 808 FURTHER READING 809 WEB PROJECTS 810 CONCEPT REVIEW
QUESTIONS 810 QUIZ 810 PRACTICE QUESTIONS 813 CHALLENGE QUESTIONS 813 C
H A P T E R 30 WORKING CAPITAL MANAGEMENT 819 30.1 INVENTORIES 820 30.2
CREDIT MANAGEMENT 823 TERMS OF SAELE / THE PROMISE TO PAY / CREDIT
ANALYSIS / THE CREDIT DECISION / COLLECTION POLICY 30.3 CASH 830 HOW
PURCHASES ARE PAID FOR / ELECTRONIC FUNDS TRANSFER /SPEEDING UP CHECK
COLLECTIONS /INTERNATIONAL CASH MANAGEMENT / PAYING FOR BANK SERVICES
30.4 MARKETABLE SECURITIES 836 CALCULATING THE YIELD ON MONEY-MARKET
INVESTMENTS / YIELDS ON MONEY-MARKET INVESTMENTS / THE INTERNATIONAL
MONEY MARKET /MONEY-MARKET INSTRUMENTS SUMMARY 842 FURTHER READING 844
WEB PROJECTS 844 CONCEPT REVIEW QUESTIONS 845 QUIZ 845 PRACTICE
QUESTIONS 847 CHALLENGE QUESTIONS 849 C H A P T E R 31 SHORT-TERM
FINANCIAL PLANNING 851 31.1 LINKS BETWEEN LONG-TERM AND SHORT-TERM
FINANCING DECISIONS 852 31.2 TRACING CHANGES IN CASH AND WORKING CAPITAL
855 TRACING CHANGES IN NET WORKING CAPITAL /PROFITS AND CASH FLOW 31.3
CASH BUDGETING 859 PREPARING THE CASH BUDGET: INFLOW / PREPARING THE
CASH BUDGET: OUTFLOW 31.4 THE SHORT-TERM FINANCING PLAN 862 OPTIONSFOR
SHORT-TERM FINANCING/ DYNAMIC S FINANCING PLAN / EVALUATING THE PLAN IA
NOTE ON SHORT- TERM FINANCIAL PLANNING MODELS 31.5 SOURCES OF SHORT-TERM
BORROWING 865 BANK LOANS / COMMERCIAL PAPER / MEDIUM-TERM NOTES SUMMARY
872 FURTHER READING 874 WEB PROJECT 874 CONCEPT REVIEW QUESTIONS 874
QUIZ 875 PRACTICE QUESTIONS 876 CHALLENGE QUESTIONS 879 P A R T T E N
MERGERS, CORPORATE CONTROL, AND GOVERNANCE 881 C H A P T E R 32 MERGERS
882 32.1 SENSIBLE MOTIVES FOR MERGERS 882 ECONOMIES OF SCALE / ECONOMIES
OF VERTICAL INTEGRATION / COMPLEMENTARY RESOURCES / SURPLUS FUNDS /
ELIMINATING INEFFICIENCIES / INDUSTRY CONSOLIDATION 32.2 SOME DUBIOUS
REASONS FOR MERGERS 888 DIVERSIFICATION /INCREASING EARNINGS PER SHARE:
THE BOOTSTRAP GAME /LOWER FINANCING COSTS XXVI CONTENTS 32.3 ESTIMATING
MERGER GAINS AND COSTS 891 RIGHT AND WRONG WAYS TO ESTIMATE THE BENEFITS
OF MERGERS /MORE ON ESTIMATING COSTS * WHAT IFTHE TARGET S STOCK PRICE
ANTICIPATES THE MERGER? / ESTIMATING COST WHEN THE MERGER IS FINANCED BY
STOCK I ASYMMETRIE INFORMATION 32.4 THE MECHANICS OF A MERGER 896
MERGERS, ANTITRUST LAW, AND POPULAER OPPOSITION I THE FORM OF ACQUISITION
/MERGER ACCOUNTING /SOME TAX CONSIDERATIONS 32.5 PROXY FIGHTS,
TAKEOVERS, AND THE MARKET FOR CORPORATE CONTROL 900 PROXY CONTESTS /
TAKEOVERS / ORACLE BIDSFOR PEOPLESCFT / TAKEOVER DEFENSES / WHO GAINS
MOST IN MERGERS? 32.6 MERGERS AND THE ECONOMY 907 MERGER WAVES / DO
MERGERS GENERATE NET BENEFITS? SUMMARY 909 FURTHER READING 909 CONCEPT
REVIEW QUESTIONS 910 QUIZ 910 PRACTICE QUESTIONS 911 CHALLENGE QUESTIONS
913 APPENDIX: CONGLOMERATE MERGERS AND VALUE ADDITIVITY 913 C H A P T E
R 33 CORPORATE RESTRUCTURING 916 33.1 LEVERAGED BUYOUTS 917 RJR NABISCO
/BARBARIANS AT THE GATE? /LEVERAGED RESTRUCTURINGS / LBOS AND LEVERAGED
RESTRUCTURINGS 33.2 FUSION AND FISSION IN CORPORATE FINANCE 921
SPIN-OFFS I CARVE-OUTS / ASSET SALES / PRIVATIZATION 33.3 PRIVATE EQUITY
927 PRIVATE-EAUITY PARTNERSHIPS /ARE PRIVATE-EQUITY FUNDS TODAY S
CONGLOMERATES? 33.4 BANKRUPTCY 933 IS CHAPTER 11 EFFICIENT? / WORKOUTS
/ALTERNATIVE BANKRUPTCY PROCEDURES SUMMARY 938 FURTHER READING 939
CONCEPT REVIEW QUESTIONS 940 QUIZ 940 PRACTICE QUESTIONS 941 C H A P T E
R 34 GOVERNANCE AND CORPORATE CONTROL AROUND THE WORLD 943 34.1
FINANCIAL MARKETS AND INSTITUTIONS 944 INVESTOR PROTECTION AND THE
DEVELOPMENT OF FINANCIAL MARKETS 34.2 OWNERSHIP, CONTROL, AND GOVERNANCE
948 OWNERSHIP AND CONTROL IN JAPAN / OWNERSHIP AND CONTROL IN GERMANY /
EUROPEAN BOARDS OFDIRECTORS / OWNERSHIP AND CONTROL IN OTHER COUNTRIES /
CONGLOMERATES REVISITED 34.3 DO THESE DIFFERENCES MATTER? 957 RISK AND
SHORT-TERMISM / GROWTH INDUSTRIES AND DECLINING INDUSTRIES /
TRANSPARENCY AND GOVERNANCE SUMMARY 961 FURTHER READING 963 CONCEPT
REVIEW QUESTIONS 963 QUIZ 963 PRACTICE QUESTIONS 964 P A R T E L E V E N
CONCLUSION 966 C H A P T E R 35 CONCLUSION: WHAT WE DO AND DO NOT KNOW
ABOUT FINANCE 966 35.1 WHAT WE DO KNOW: THE SEVEN MOST IMPORTANT IDEAS
IN FINANCE 966 1. NET PRESENT VALUE / 2. THE CAPITAL ASSET PRICING
MODEL/3. EFFICIENT CAPITAL MARKETS /4. VALUE ADDITIVITY AND THE LAW OF
CONSERVATION OF VALUE / 5. CAPITAL STRUCTURE THEORY / 6. OPTION THEORY /
7. AGENCY THEORY 35.2 WHAT WE DO NOT KNOW: 10 UNSOLVED PROBLEMS IN
FINANCE 969 1. WHAT DETERMINES PROJECT RISK AND PRESENT VALUE? / 2. RISK
AND RETURN * WHAT HAVE WE MISSED? / 3. HOW IMPORTANT ARE THE EXCEPTIONS
TO THE EFFICIENT-MARKET THEORY? 14. IS MANAGEMENT AN OFF-BALANCE-SHEET
LIABILITY? / 5. HOW CAN WE EXPLAIN THE SUCCESS OFNEW SECURITIES AND NEW
MARKETS? / 6. HOW CAN WE RESOLVE THE PAYOUT CONTROVERSY? /7. WHAT RISKS
SHOULD A FIRM TAKE? / 8. WHAT IS THE VALUE OFLIQUIDITY? / 9. HOW CAN WE
EXPLAIN MERGER WAVES? /10. HOW CAN WE EXPLAIN INTERNATIONAL DIFFERENCES
IN FINANCIAL ARCHITECTURE? 35.3 A FINAL WORD 976 APPENDIX A PRESENT
VALUE TABLES A APPENDIX B ANSWERS TO QUIZZES B GLOSSARY G GLOBAL INDEX
1-1 GENERAL INDEX 1-7 * XXVLL
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N I N T H E D I T I O N RICHARD A. BREALEY PROFESSOR OF FINANCE LONDON
BUSINESS SCHOOL STEWART C. MYERS ROBERT C. MERTON (1970) PROFESSOR OF
FINANCE SLOAN SCHOOL OF MANAGEMENT MASSACHUSETTS INSTITUTE OF TECHNOLOGY
FRANKLIN ALLEN NIPPON LIFE PROFESSOR OF FINANCE THE WHARTON SCHOOL
UNIVERSITY OF PENNSYLVANIA MC GRAW HILL BOSTON BURRRIDGE, IL DUBUQUE, IA
NEW YORK SAN FRANCISCO ST. LOUIS BANGKOK BOGOTA CARACAS KUALA LUMPUR
LISBON LONDON MADRID MEXICO CITY MILAN MONTREAL NEW DELHI SANTIAGO SEOUL
SINGAPORE SYDNEY TAIPEI TORONTO CONTENTS P A R T O N E VALUE 1 C HA P T
E R 1 FINANCE AND THE FINANCIAL MANAGER 2 1.1 WHAT IS A CORPORATION? 3
1.2 THE ROLE OF THE FINANCIAL MANAGER 4 1.3 WHO IS THE FINANCIAL
MANAGER? 6 1.4 SEPARATION OF OWNERSHIP AND MANAGEMENT 7 1.5 TOPICS
COVERED IN THIS BOOK 9 SUMMARY 10 FURTHER READING 10 CONCEPT REVIEW
QUESTIONS 11 QUIZ 11 C H A P T E R 2 PRESENT VALUES, THE OBJECTIVES OF
THE FIRM, AND CORPORATE GOVERNANCE 13 2.1 2.2 2.3 INTRODUCTION TO
PRESENT VALUE 14 CALCULATING FUTURE VALUE AND PRESENT VALUE /NET PRESENT
VALUE / RISK AND PRESENT VALUE / PRESENT VALUES AND RATES OF RETURN /
THE OPPORTUNITY COST OF CAPITAL / A SOURCE OFCONFUSION FOUNDATIONS OF
THE NET PRESENT VALUE RULE 19 HOW CAPITAL MARKETS RECONCILE PREFERENCES
FOR CURRENT US. FUTURE CONSUMPTION /A FUNDAMENTAL RESULT / OTHER
CORPORATE GOALS CORPORATE GOALS AND CORPORATE GOVERNANCE 23 SHOULD
MANAGERS LOOK AFTER THE INTERESTS OF SHAREHOLDERS? /SHOULD FIRNIS
BEMANAGEDFOR SHAREHOLDERS OR ALL STAKEHOLDERS? /ENRON, WORLDCOM, AND SOX
SUMMARY 29 FURTHER READING 31 CONCEPT REVIEW QUESTIONS 31 QUIZ 31
PRACTICE QUESTIONS 32 CHALLENGE QUESTION 34 C H A P T E R 3 HOW TO
CALCULATE PRESENT VALUES 35 3.1 VALUING LONG-LIVED ASSETS 35 VALUING
CASH FLOWS IN SEVERAL PERIODS / WHY THE DISCOUNT FACTOR DECLINES AS
FUTURITY INCREASES * AND A DIGRESSION ON MONEY MACHINES / CALCULATING
PVS AND NPVS 3.2 LOOKING FOR SHORTCUTS*PERPETUITIES AND ANNUITIES 40 HOW
TO VALUE PERPETUITIES /HOW TO VALUE ANNUITIES / PV ANNUITIES: AN EXAMPLE
/ PV ANNUITIES: ANOTHER EXAMPLE/PV ANNUITIES DUE / CALCULATING ANNUAL
PAYMENTS: AN EXAMPLE /FUTURE VALUE OFAN ANNUITY: AN EXAMPLE 3.3 MORE
SHORTCUTS*GROWING PERPETUITIES AND ANNUITIES 46 GROWING PERPETUITIES /
GROWING ANNUITIES 3.4 COMPOUND INTEREST AND PRESENT VALUES 48 A NOTE ON
COMPOUNDING INTERVALS / CONTINUOUS COMPOUNDING SUMMARY 53 WEB PROJECTS
54 CONCEPT REVIEW QUESTIONS 54 QUIZ 54 PRACTICE QUESTIONS 55 CHALLENGE
QUESTIONS 58 XVIII CONTENTS C H A P T E R 4 VALUING BONDS 59 4.1 USING
THE PRESENT VALUE FORMULA TO VALUE BONDS 60 A SHORT TRIP TO GERMANY TO
VALUE A GOVERNMENT BOND /BACK TO THE UNITED STATES: SEMIANNUAL COUPONS
AND BOND PRICES 4.2 HOW BOND PRICES VARY WITH INTEREST RATES 63 DURATION
AND BOND VOLATILITY / A CAUTIONARY NOTE 4.3 THE TERM STRUCTURE OF
INTEREST RATES 67 THE YIELD TO MATURITY AND THE TERM STRUCTURE /
MEASURING THE TERM STRUCTURE 4.4 EXPLAINING THE TERM STRUCTURE 69 THE
EXPECTATIONS THEORY / INTRODUCING RISK / INFLATION AND TERM STRUCTURE
4.5 REAL AND NOMINAL RATES OF INTEREST 72 INDEXED BONDS AND THE REAL
RATE OF INTEREST / INFLATION AND NOMINAL INTEREST RATES /HOW WELL DOES
FISHER'S THEORY EXPLAIN INTEREST RATES? SUMMARY 78 FURTHER READING 79
WEB PROJECT 79 CONCEPT REVIEW QUESTIONS 80 QUIZ 80 PRACTICE QUESTIONS 82
CHALLENGE QUESTIONS 84 C H A P T E R 5 THE VALUE OF COMMON STOCKS 85 5.1
HOW COMMON STOCKS ARE TRADED 86 5.2 HOW COMMON STOCKS ARE VALUED 88
TODAY'S PRICE/BUT WHAT DETERMINES NEXT YEAR'S PRICE? 5.3 ESTIMATING THE
COST OF EQUITY CAPITAL 92 USING THE DCF MODEL TO SET GAS AND ELECTRICITY
PRICES / DANGERS LURK IN CONSTANT-GROWTH FORMULAS 5.4 THE LINK BETWEEN
STOCK PRICE AND EARNINGS PER SHARE 98 CALCULATING THE PRESENT VALUE
OFGROWTH OPPORTUNITIES FOR FLEDGLING ELECTRONICS / EXAMPLES OFGROWTH
OPPORTUNITIES 5.5 VALUING A BUSINESS BY DISCOUNTED CASH FLOW 102 VALUING
THE CONCATENATOR BUSINESS / VALUATION FORMAT ESTIMATING HORIZON VALUE /
A FURTHER REALITY CHECK SUMMARY 106 FURTHER READING 108 CONCEPT REVIEW
QUESTIONS 108 QUIZ 108 PRACTICE QUESTIONS 109 CHALLENGE QUESTIONS 112
MINI-CASE: REEBY SPORTS 113 C H A P T E R 6 WHY NET PRESENT VALUE LEADS
TO BETTER INVESTMENT DECISIONS THAN OTHER CRITERIA 115 6.1 A REVIEW OF
THE BASICS 116 NET PRESENT VALUE'S COMPETITORS / THREE POINTS TO
REMEMBER ABOUT NPV /NPV DEPENDS ON CASH FLOW, NOT ON BOOK RETURNS 6.2
PAYBACK 120 THE PAYBACK RULE 6.3 INTERNAL (OR DISCOUNTED-CASH-FLOW) RATE
OF RETURN 121 CALCULATING THE IRR / THE IRR RULE/PITFALL L~LENDING OR
BORROWING? /PITFALL 2 * MULTIPLE RATES OF RETURN / PITF ALL 3 * MUTUALLY
EXCLUSIVE PROJECTS / PITFALL 4 * WHAT HAPPENS WHEN WE CAN'T FINESSE THE
TERM STRUCTURE OF INTEREST RATES? /THE VERDICT ON IRR 6.4 CHOOSING
CAPITAL INVESTMENTS WHEN RESOURCES ARE LIMITED 131 AN EASY PROBLEM IN
CAPITAL RATIONING / USES OF CAPITAL RATIONING MODELS SUMMARY 134 FURTHER
READING 135 CONCEPT REVIEW QUESTIONS 136 QUIZ 136 PRACTICE QUESTIONS 137
CHALLENGE QUESTIONS 139 MINI-CASE: VEGETRON'S CFO CALLS AGAIN 140 C H A
P T E R 7 MAKING INVESTMENT DECISIONS WITH THE NET PRESENT VALUE RULE
142 7.1 APPLYING THE NET PRESENT VALUE RULE 143 ONLY CASH FLOW IS
RELEVANT / ESTIMATE CASH FLOWS ON AN INCREMENTAL BASIS / TREAT INFLATION
CONSISTENTLY 7.2 EXAMPLE*IM&C'S FERTILIZER PROJECT 147 SEPARATING
INVESTMENT AND FINANCING DECISIONS / INVESTMENTS IN WORKING CAPITAL / A
FURTHER NOTE ON DEPRECIATION IA FINAL COMMENT ON TAXES / PROJECT
ANALYSIS / CALCULATING NPV IN OTHER COUNTRIES AND GURRENDES 7.3
EQUIVALENT ANNUAL COSTS 155 INVESTING TO PRODUCE REFORMULATED GASOLINE
AT CALIFORNIA REFINERIES / CHOOSING BETWEEN LONG- AND SHORT-LIVED
EAUIPMENT / DECIDING WHEN TO REPLACE AN EXISTING MACHINE XIX CONTENTS
SUMMARY 160 CONCEPT REVIEW QUESTIONS 161 QUIZ 161 PRACTICE QUESTIONS 163
CHALLENGE QUESTIONS 167 MINI-CASE: NEW ECONOMY TRANSPORT (A) AND (B) 168
P A R T T W O RISK 171 C H A P T E R 8 INTRODUCTION TO RISK, RETURN, AND
THE OPPORTUNITY COST OF CAPITAL 172 8.1 OVER A CENTURY OF CAPITAL MARKET
HISTORY IN ONE EASY LESSON 172 ARITHMETIC AVERAGES AND COMPOUND ANNUAL
RETURNS / USING HISTORICAL EVIDENCE TO EVALUATE TODAY'S COST OF CAPITAL
I DIVIDEND YIELDS AND THE RISK PREMIUM 8.2 MEASURING PORTFOLIO RISK 180
VARIANCE AND STANDARD DEVIATION /MEASURING VARIABILITY / HOW
DIVERSISSCATION REDUCES RISK 8.3 CALCULATING PORTFOLIO RISK 189 GENERAL
FORMULAFOR COMPUTING PORTFOLIO RISK /LIMITS TO DIVERSIFICATION 8.4 HOW
INDIVIDUAL SECURITIES AFFECT PORTFOLIO RISK 193 MARKET RISK IS MEASURED
BY BETA / WHY SECURITY BETAS DETERMINE PORTFOLIO RISK 8.5
DIVERSIFICATION AND VALUE ADDITIVITY 197 SUMMARY 198 FURTHER READING 199
CONCEPT REVIEW QUESTIONS 199 QUIZ 200 PRACTICE QUESTIONS 201 CHALLENGE
QUESTIONS 204 C H A P T E R 9 RISK AND RETURN 206 9.1 HARRY MARKOWITZ
AND THE BIRTH OF PORTFOLIO THEORY 206 COMBINING STOCKS INTO PORTFOLIOS /
WE INTRODUCE BORROWING AND LENDING 9.2 THE RELATIONSHIP BETWEEN RISK AND
RETURN 213 SOME ESTIMATES OFEXPECTED RETURNS / REVIEW OFTHE CAPITAL
ASSET PRICING MODEL / WHAT IFA STOCK DID NOT HIE ON THE SECURITY MARKET
LINE? 9.3 VALIDITY AND ROLE OF THE CAPITAL ASSET PRICING MODEL 217 TESTS
OFTHE CAPITAL ASSET PRICING MODEL / ASSUMPTIONS BEHIND THE CAPITAL ASSET
PRICING MODEL 9.4 SOME ALTERNATIVE THEORIES 222 CONSUMPTION BETAS VERSUS
MARKET BETAS /ARBITRAGE PRICING THEORY / A COMPARISON OFTHE CAPITAL
ASSET PRICING MODEL AND ARBITRAGE PRICING THEORY / THE THREE-FACTOR
MODEL SUMMARY 227 FURTHER READING 228 CONCEPT REVIEW QUESTIONS 229 QUIZ
229 PRACTICE QUESTIONS 231 CHALLENGE QUESTIONS 235 MINI-CASE: JOHN AND
MARSHA ON PORTFOLIO SELECTION 236 C H A P T E R 10 CAPITAL BUDGETING AND
RISK 238 10.1 COMPANY AND PROJECT COSTS OF CAPITAL 239 PERFECT PITCH AND
THE COST OF CAPITAL / DEBT AND THE COMPANY COST OF CAPITAL 10.2
MEASURING THE COST OF EQUITY 242 ESTIMATING BETA / THE EXPECTED RETURN
ON UNION PACIFIC CORPORATION'S COMMON STOCK 10.3 SETTING DISCOUNT RATES
WHEN YOU DON'T HAVE A BETA 246 AVOID FUDGE FACTORS IN DISCOUNT RATES /
WHAT DETERMINES ASSET BETAS? 10.4 CERTAINTY EQUIVALENTS*ANOTHER WAY TO
ADJUST FOR RISK 250 VALUATION BY CERTAINTY EQUIVALENTS / WHEN TO USE A
SINGLE RISK-ADJUSTED DISCOUNT RATE FOR LONG-LIVED ASSETS / A COMMON
MISTAKE / WHEN YOU CANNOT USE A SINGLE RISK-ADJUSTED DISCOUNT RATE FOR
LONG- LIVED ASSETS 10.5 DISCOUNT RATES FOR INTERNATIONAL PROJECTS 255
FOREIGN INVESTMENTS ARE NOT ALWAYS RISKIER I FOREIGN INVESTMENT IN THE
UNITED STATES /DO SOME COUNTRIES HAVE A LOWER COST OF CAPITAL? SUMMARY
258 FURTHER READING 259 CONCEPT REVIEW QUESTIONS 259 QUIZ 260 PRACTICE
QUESTIONS 260 CHALLENGE QUESTIONS 264 MINI-CASE: THE JONES FAMILY,
INCORPORATED 264 XX CONTENTS P A R T T H R E E BEST PRACTICES IN CAPITAL
BUDGETING 267 C H A P T E R 11 PROJECT ANALYSIS 268 11.1 THE CAPITAL
INVESTMENT PROCESS 269 PROJECT AUTHORIZATIONS * AND THE PROBLEM OFBIASED
FORECASTS /POSTAUDITS 11.2 SENSITIVITY ANALYSIS 271 VALUE OF INFORMATION
I LIMITS TO SENSITIVITY ANALYSIS / SCENARIO ANALYSIS / BREAK-EVEN
ANALYSIS / OPERATING LEVERAGE AND BREAK-EVEN POINTS 11.3 MONTE CARLO
SIMULATION 278 SIMULATING THE ELECTRIC SCOOTER PROJECT / SIMULATION OF
PHARMACEUTICAL RESEARCH AND DEVELOPMENT 11.4 REAL OPTIONS AND DECISION
TREES 283 THE OPTION TO EXPAND / THE OPTION TO ABANDON / PRODUCTION
OPTIONS I TIMING OPTIONS /MORE ON DECISION TREES /AN EXAMPLE: MAGNA
CHARTER /PRO AND CON DECISION TREES /DECISION TREES AND MONTE CARLO
SIMULATION SUMMARY 294 FURTHER READING 295 CONCEPT REVIEW QUESTIONS 295
QUIZ 295 PRACTICE QUESTIONS 296 CHALLENGE QUESTIONS 299 MINI-CASE: WALDO
COUNTY 299 C H A P T E R 12 INVESTMENT, STRATEGY, AND ECONOMIC RENTS 302
12.1 LOOK FIRST TO MARKET VALUES 303 THE CADILLAC AND THE MOVIE STAR /
EXAMPLE: INVESTING IN A NEW DEPARTMENT STORE / ANOTHER EXAMPLE: OPENING
A GOLD MINE 12.2 ECONOMIC RENTS AND COMPETITIVE ADVANTAGE 308 HOW ONE
COMPANY AVOIDED A $100 MILLION MISTAKE 12.3 EXAMPLE: MARVIN ENTERPRISES
DECIDES TO EXPLOIT A NEW TECHNOLOGY 311 PORECASTING PRICES OFGARGLE
BLASTERS /THE VALUE OF MARVIN'S NEW EXPANSION /ALTERNATIVE EXPANSION
PLANS / THE VALUE OF MARVIN STOCK / THE LESSONS OF MARVIN ENTERPRISES
SUMMARY 319 FURTHER READING 319 CONCEPT REVIEW QUESTIONS 320 QUIZ 320
PRACTICE QUESTIONS 321 CHALLENGE QUESTIONS 323 MINI-CASE: ECSY-COLA 325
C H A P T E R 13 AGENCY PROBLEMS, MANAGEMENT COMPENSATION, AND THE
MEASUREMENT OF PERFORMANCE 327 13.1 INCENTIVES AND COMPENSATION 328
AGENCY PROBLEMS IN CAPITAL BUDGETING /MONITORING / MANAGEMENT
COMPENSATION 13.2 MEASURING AND REWARDING PERFORMANCE: RESIDUAL INCOME
AND EVA 333 PROS AND CONS OFEVA 13.3 BIASES IN ACCOUNTING MEASURES OF
PERFORMANCE 337 EXAMPLE: MEASURING THE PROFITABILITY OFTHE NODHEAD
SUPERMARKET /MEASURING ECONOMIC PROFITABILITY /DO THE BIASES WASH OUT IN
THE LONG RUN? / WHAT CAN WE DO ABOUT BIASES IN ACCOUNTING PROFITABILITY
MEASURES? /EARNINGS AND EARNINGS TARGETS SUMMARY 345 FURTHER READING 346
CONCEPT REVIEW QUESTIONS 347 QUIZ 347 PRACTICE QUESTIONS 348 CHALLENGE
QUESTIONS 350 P A R T F O U R FINANCING DECISIONS - AND MARKET
EFFICIENCY 351 C H A P T E R 14 EFFICIENT MARKETS AND BEHAVIORAL FINANCE
352 14.1 WE ALWAYS COME BACK TO NPV 353 DIFFERENCES BETWEEN INVESTMENT
AND FINANCING DECISIONS 14.2 WHAT IS AN EFFICIENT MARKET? 355 A
STARTLING DISCOVERY: PRICE CHANGES ARE RANDOM / THREE FORMS OF MARKET
EFFICIENCY / EFFICIENT MARKETS: THE EVIDENCE 14.3 THE EVIDENCE AGAINST
MARKET EFFICIENCY 363 DO INVESTORS RESPOND SLOWLY TO NEW INFORMATION?
/ARE STOCK PRICES DETERMINED BY FUNDAMENTALS? / THE DOT.COM BOOM AND
RELATIVE EFFICIENCY 14.4 BEHAVIORAL FINANCE 369 LIMITS TO ARBITRAGE /
BEHAVIORAL FINANCE AND MARKET EFFICIENCY * XXI CONTENTS 14.5 THE SIX
LESSONS OF MARKET EFFICIENCY 372 LESSON 1: MARKETS HAVE NO MEMORY /
LESSON 2: TRUST MARKET PRICES /LESSON 3: READ THE ENTRAILS /LESSON 4:
THERE ARE NO FINANCIAL ILLUSIONS / LESSON 5: THE DO-IT- YOURSELF
ALTERNATIVE / LESSON 6: SEEN ONE STOCK, SEEN THERN ALL / WHAT IF MARKETS
ARE NOT EFFICIENT? IMPLICATIONS FOR THE FINANCIAL MANAGER SUMMARY 378
FURTHER READING 379 CONCEPT REVIEW QUESTIONS 380 QUIZ 380 PRACTICE
QUESTIONS 381 CHALLENGE QUESTIONS 383 C H A P T E R 15 AN OVERVIEW OF
CORPORATE FINANCING 385 15.1 PATTERNS OF CORPORATE FINANCING 386 DO
FIRNIS RELY TOO MUCH ON INTERNAL FUNDS? /HOW MACH DO FIRMS BORROW? 15.2
COMMON STOCK 390 OWNERSHIP OFTHE CORPORATION / VOTING PROCEDURES AND THE
VALUE OF VOTES / EQUITY IN DISGUISE / PREFERRED STOCK 15.3 DEBT 396 DEBT
COMES IN MANY FORMS / A DEBT BY ANY OTHER NAME / VARIETY'S THE VERY
SPIEE OFLIFE 15.4 FINANCIAL MARKETS AND INSTITUTIONS 400 FINANCIAL
INSTITUTIONS SUMMARY 402 FURTHER READING 403 WEB PROJECTS 404 CONCEPT
REVIEW QUESTIONS 404 QUIZ 404 PRACTICE QUESTIONS 405 CHALLENGE QUESTION
406 C H A P T E R 16 HOW CORPORATIONS ISSUE SECURITIES 407 16.1 VENTURE
CAPITAL 408 THE VENTURE CAPITAL MARKET 16.2 THE INITIAL PUBLIC OFFERING
412 ARRANGING AN INITIAL PUBLIC OFFERING I THE SAELE OF MARVIN STOCK /
THE UNDERWRITERS / COSTS OF A NEW ISSUE I UNDERPRICING OFIPOS /HOT
NEW-ISSUE PERIODS 16.3 OTHER NEW-ISSUE PROCEDURES 422 TYPES OF AUCTION
16.4 SECURITY SALES BY PUBLIC COMPANIES 424 GENERAL CASH OFFERS
/INTERNATIONAL SECURITY ISSUES / THE COSTS OF A GENERAL CASH OFF ER /
MARKET REACTION TO STOCK ISSUES /RIGHTS ISSUES 16.5 PRIVATE PLACEMENTS
AND PUBLIC ISSUES 430 SUMMARY 430 FURTHER READING 431 WEB PROJECT 432
CONCEPT REVIEW QUESTIONS 432 QUIZ 432 PRACTICE QUESTIONS 434 CHALLENGE
QUESTIONS 435 APPENDIX: MARVIN'S NEW-ISSUE PROSPECTUS 436 P A R T F I V
E PAYOUT POLICY AND CAPITAL STRUCTURE 441 C H A P T E R 17 PAYOUT POLICY
442 17.1 THE CHOICE OF PAYOUT POLICY 443 17.2 HOW FIRMS PAY DIVIDENDS
AND REPURCHASE STOCK 444 HOW FIRMS REPURCHASE STOCK 17.3 HOW DO
COMPANIES DECIDE ON THE PAYOUT? 446 17.4 THE INFORMATION IN DIVIDENDS
AND STOCK REPURCHASES 447 THE INFORMATION CONTENT OFSHARE REPURCHASE
17.5 THE PAYOUT CONTROVERSY 450 DIVIDEND POLICY IS IRRELEVANT IN PERFECT
CAPITAL MARKETS / DIVIDEND IRRELEVANCE * AN ILLUSTRATION I CALCULATING
SHARE PRICE / STOCK REPURCHASE / STOCK REPURCHASE AND VALUATION 17.6 THE
RIGHTISTS 455 PAYOUT POLICY, INVESTMENT POLICY, AND MANAGEMENT
INCENTIVES 17.7 TAXES AND THE RADICAL LEFT 457 WHY PAY ANY DIVIDENDS AT
ALL? / EMPIRICAL EVIDENCE ON DIVIDENDS AND TAXES /THE TAXATION OF
DIVIDENDS AND CAPITAL GAINS 17.8 THE MIDDLE-OF-THE-ROADERS 461
ALTERNATIVE TAX SYSTEMS SUMMARY 464 FURTHER READING 465 CONCEPT REVIEW
QUESTIONS 466 QUIZ 466 PRACTICE QUESTIONS 467 CHALLENGE QUESTIONS 470
XXN CONTENTS C H A P T E R 18 DOES DEBT POLICY MATTER? 472 18.1 THE
EFFECT OF FINANCIAL LEVERAGE IN A COMPETITIVE TAX-FREE ECONOMY 473 ENTER
MODIGLIANI AND MILLER / THE LAW OF CONSERVATION OF VALUE I AN EXAMPLE OF
PROPOSITION 1 18.2 FINANCIAL RISK AND EXPECTED RETURNS 479 PROPOSITION 2
/HOW CHANGING CAPITAL STRUCTURE AFFECTS BETA 18.3 THE WEIGHTED-AVERAGE
COST OF CAPITAL 483 TWO WARNINGS / RATES OF RETURN ON LEVERED EQUITY *
THE TRADITIONAL POSITION / TODAY'S UNSATISFIED CLIENTEIES ARE PROBABLY
INTERESTED IN EXOTIC SECURITIES / IMPERFECTIONS AND OPPORTUNITIES 18.4 A
FINAL WORD ON THE AFTER-TAX WEIGHTED-AVERAGE COST OF CAPITAL 488 UNION
PACIFIC'S WACC SUMMARY 489 FURTHER READING 490 CONCEPT REVIEW QUESTIONS
491 QUIZ 491 PRACTICE QUESTIONS 493 CHALLENGE QUESTIONS 495 C H A P T E
R 19 HOW MUCH SHOULD A FIRM BORROW? 496 19.1 CORPORATE TAXES 497 HOW DO
INTEREST TAX SHIELDS CONTRIBUTE TO THE VALUE OF STOCKHOLDERS' EQUITY?
/RECASTING MERCK'S CAPITAL STRUCTURE /MM AND TAXES 19.2 CORPORATE AND
PERSONAL TAXES 501 19.3 COSTS OF FINANCIAL DISTRESS 503 BANKRUPTCY COSTS
/ EVIDENTE ON BANKRUPTCY COSTS / DIRECT VERSUS INDIRECT COSTS OF
BANKRUPTCY / FINANCIAL DISTRESS WITHOUT BANKRUPTCY / DEBT AND INCENTIVES
/ RISK SHIFTING: THE FIRST GAME / REFUSING TO CONTRIBUTE EQUITY CAPITAL:
THE SECOND GAME /AND THREE MORE GAMES, BRIEFLY / WHAT THE GAMES COST /
COSTS OF DISTRESS VARY WITH TYPE OFASSET / THE TRADE-OFF THEORY OF
CAPITAL STRUCTURE 19 .4 THE PECKING ORDER OF FINANCING CHOICES 517 DEBT
AND EQUITY ISSUES WITH ASYMMETRIE INFORMATION / IMPLICATIONS OF THE
PECKING ORDER / THE TRADE-OFF THEORY VS. THE PECKING-ORDER THEORY * SOME
RECENT TESTS / THE BRIGHT SIDE AND THE DARK SIDE OF FINANCIAL SLACK
SUMMARY 522 FURTHER READING 524 CONCEPT REVIEW QUESTIONS 524 QUIZ 524
PRACTICE QUESTIONS 525 CHALLENGE QUESTIONS 528 C H A P T E R 20
FINANCING AND VALUATION 529 20.1 THE AFTER-TAX WEIGHTED-AVERAGE COST OF
CAPITAL 530 EXAMPLE: SANGRIA CORPORATION /REVIEW OF ASSUMPTIONS 20.2
VALUING BUSINESSES 533 VALUING RIO CORPORATION / ESTIMATING HORIZON
VALUE / WACC VS. THE FLOW-TO-EQUITY METHOD 20.3 USING WACC IN PRACTICE
538 SOME TRICKS OFTHE TRADE /MISTAKES PEOPLE MAKE IN USING THE
WEIGHTED-AVERAGE FORMULA / ADJUSTING WACC WHEN DEBT RATIOS OR BUSINESS
RISKS DIFFER / UNLEVERING AND RELEVERING BETAS / THE IMPORTANCE OF
REBALANCING / THE MODIGLIANI-MILLER FORMULA, PLUS SOME FINAL ADVICE 20.4
ADJUSTED PRESENT VALUE 546 APVFOR THE PERPETUAL CRUSHER / OTHER
FINANCING SIDE EFFECTS /APVFOR BUSINESSES /APVFOR INTERNATIONAL
INVESTMENTS 20.5 YOUR QUESTIONS ANSWERED 550 SUMMARY 552 FURTHER READING
554 CONCEPT REVIEW QUESTIONS 554 QUIZ 554 PRACTICE QUESTIONS 555
CHALLENGE QUESTIONS 559 APPENDIX: DISCOUNTING SAFE, NOMINAL CASH FLOWS
559 P A R T S I X OPTIONS 563 C H A P T E R 21 UNDERSTANDING OPTIONS 564
21.1 CALLS, PUTS, AND SHARES 565 CALL OPTIONS AND POSITION DIAGRAMS /
PUT OPTIONS / SELLING CALLS, PUTS, AND SHARES / POSITION DIAGRAMS ARE
NOT PROFIT DIAGRAMS 21.2 FINANCIAL ALCHEMY WITH OPTIONS 569 SPOTTING THE
OPTION 21.3 WHAT DETERMINES OPTION VALUES? 576 RISK AND OPTION VALUES
SUMMARY 582 FURTHER READING 582 CONCEPT REVIEW QUESTIONS 582 '.* XXI N
CONTENTS QUIZ 583 PRACTICE QUESTIONS 584 CHALLENGE QUESTIONS 586 C H A P
T E R 22 VALUING OPTIONS 588 22.1 A SIMPLE OPTION-VALUATION MODEL 589
WHY DISCOUNTED CASH FLOW WON'T WORK FOR OPTIONS / CONSTRUCTING OPTION
EQUIVALENTS FROM COMMON STOCKS AND BORROWING / VALUING THE GENENTECH PUT
OPTION 22.2 THE BINOMIAL METHOD FOR VALUING OPTIONS 593 EXAMPLE: THE
TWO-STAGE BINOMIAL METHOD / THE GENERAL BINOMIAL METHOD / THE BINOMIAL
METHOD AND DECISION TREES 22.3 THE BLACK-SCHOLES FORMULA 599 USING THE
BLACK-SCHOLES FORMULA / THE BLACK-SCHOLES FORMULA AND THE BINOMIAL
METHOD IIA BLACK-SCHOLES IN ACTION 603 EXECUTIVE STOCK OPTIONS /
WARRANTS / PORTFOLIO INSURANCE / CALCULATING IMPLIED VOLATILITIES 22.5
OPTION VALUES AT A GLANCE 606 22.6 THE OPTION MENAGERIE 608 SUMMARY 608
FURTHER READING 609 CONCEPT REVIEW QUESTIONS 609 QUIZ 609 PRACTICE
QUESTIONS 610 CHALLENGE QUESTIONS 613 MINI-CASE: BRUCE HONIBALL'S
INVENTION 613 APPENDIX: HOW DILUTION AFFECTS OPTION VALUE 615 C H A P T
E R 23 REAL OPTIONS 619 23.1 THE VALUE OF FOLLOW-ON INVESTMENT
OPPORTUNITIES 620 QUESTIONS AND ANSWERS ABOUT BLITZEN 'S MARK II / OTHER
EXPANSION OPTIONS 23.2 THE TIMING OPTION 624 VALUING THE MALTED HERRING
OPTION / OPTIMAL TIMING FOR REAL ESTATE DEVELOPMENT 23.3 THE ABANDONMENT
OPTION 627 THE ZIRCON SUBDUCTOR PROJECT /ABANDONMENT VALUE AND PROJECT
LIFE / TEMPORARY ABANDONMENT 23.4 FLEXIBLE PRODUCTION 632 23.5 AIRCRAFT
PURCHASE OPTIONS 634 23.6 A CONCEPTUAL PROBLEM? 636 PRACTICA! CHALLENGES
SUMMARY 638 FURTHER READING 638 CONCEPT REVIEW QUESTIONS 639 QUIZ 639
PRACTICE QUESTIONS 640 CHALLENGE QUESTIONS 642 P A R T S E V E N DEBT
FINANCING 645 C H A P T E R 24 CREDIT RISK AND THE VALUE OF CORPORATE
DEBT 646 24.1 YIELDS ON CORPORATE DEBT 647 WHAT DETERMINES THE YIELD
SPREAD? 24.2 THE OPTION TO DEFAULT 651 VALUING THE DEFAULT OPTION /
VALUING GOVERNMENT LOAN GUARANTEES 24.3 BOND RATINGS AND THE PROBABILITY
OF DEFAULT 656 24.4 PREDICTING THE PROBABILITY OF DEFAULT 658 CREDIT
SCORING / MARKET-BASED RISK MODELS 24.5 VALUE AT RISK 663 SUMMARY 664
FURTHER READING 665 CONCEPT REVIEW QUESTIONS 665 QUIZ 665 PRACTICE
QUESTIONS 666 CHALLENGE QUESTIONS 666 C H A P T E R 25 THE MANY
DIFFERENT KINDS OF DEBT 667 25.1 DOMESTIC BONDS, FOREIGN BONDS, AND
EUROBONDS 668 25.2 THE BOND CONTRACT 669 INDENTURE, OR TRUST DEED / THE
BOND TERMS 25.3 SECURITY AND SENIORITY 671 ASSET-BACKED SECURITIES 25.4
REPAYMENT PROVISIONS 674 SINKING FUNDS / CALL PROVISIONS 25.5 DEBT
COVENANTS 676 25.6 CONVERTIBLE BONDS AND WARRANTS 678 THE VALUE OF A
CONVERTIBLE AT MATURITY / FORCING CONVERSION / WHY DO COMPANIES ISSUE
CONVERTIBLES? / VALUING CONVERTIBLE BONDS IA VARIATION ON CONVERTIBLE
BONDS: MANDATORY CONVERTIBLES I ANOTHER VARIATION ON CONVERTIBLE BONDS:
THE BOND-WARRANT PACKAGE XXIV CONTENTS 25.7 PRIVATE PLACEMENTS AND
PROJECT FINANCE 684 PROJECT FINANCE / PROJECT FINANCE * SOME COMMON
FEATURES / THE ROLE OF PROJECT FINANCE 25.8 INNOVATION IN THE BOND
MARKET 688 SUMMARY 691 FURTHER READING 692 CONCEPT REVIEW QUESTIONS 692
QUIZ 692 PRACTICE QUESTIONS 694 CHALLENGE QUESTIONS 696 MINI-CASE: THE
SHOCKING DEMISE OF MR. THORNDIKE 697 C H A P T E R 26 LEASING 698 26.1
WHAT IS A LEASE? 698 26.2 WHY LEASE? 699 SENSIBLE REASONSFOR LEASING /
SOME DUBIOUS REASONS FOR LEASING 26.3 OPERATING LEASES 703 EXAMPLE OFAN
OPERATING LEASE /LEASE OR BUY? 26.4 VALUING FINANCIAL LEASES 706 EXAMPLE
OF A FINANCIAL LEASE / WHO REALLY OWNS THE LEASED ASSET? / LEASING AND
THE INTERNAL REVENUE SERVICE / A FIRST PASS AT VALUING A LEASE CONTRACT
/ THE STORY SO FAR 26.5 WHEN DO FINANCIAL LEASES PAY? 712 LEASING AROUND
THE WORLD 26.6 LEVERAGED LEASES 713 SUMMARY 714 FURTHER READING 715
CONCEPT REVIEW QUESTIONS 716 QUIZ 716 PRACTICE QUESTIONS 717 CHALLENGE
QUESTIONS 719 P A R T E I G H T RISK MANAGEMENT 721 C H A P T E R 27
MANAGING RISK 722 27.1 WHY MANAGE RISK? 722 REDUCING THE RISK OFCASH
SHORTFALLS OR FINANCIAL DISTRESS / AGENCY COSTS MAY BE MITIGATED BY RISK
MANAGEMENT / THE EVIDENCE ON RISK MANAGEMENT 27.2 INSURANCE 726 HOW BP
CHANGED ITS INSURANCE STRATEGY 27.3 FORWARD AND FUTURES CONTRACTS 729 A
SIMPLE FORWARD CONTRACT / FUTURES EXCHANGES / THE MECHANICS OF FUTURES
TRADING / TRADING AND PRICING FINANCIAL FUTURES CONTRACTS / SPOT AND
FUTURES PRICES * COMMODITIES /MORE ABOUT FORWARD CONTRACTS /HOMEMADE
FORWARD RATE CONTRACTS TIA SWAPS 736 INTEREST RATE SWAPS / CURRENCY
SWAPS / SWAPS 27.5 HOW TO SET UP A HEDGE 741 USING THEORY TO SET UP THE
HEDGE: AN EXAMPLE / OPTIONS, DELTAS, AND BETAS 27.6 IS "DERIVATIVE" A
FOUR-LETTER WORD? 744 SUMMARY 747 FURTHER READING 748 CONCEPT REVIEW
QUESTIONS 748 QUIZ 749 PRACTICE QUESTIONS 750 CHALLENGE QUESTIONS 754 C
H A P T E R 28 MANAGING INTERNATIONAL RISKS 755 28.1 THE FOREIGN
EXCHANGE MARKET 755 28.2 SOME BASIC RELATIONSHIPS 757 INTEREST RATES AND
EXCHANGE RATES / THE FORWARD PREMIUM AND CHANGES IN SPOT RATES / CHANGES
IN THE EXCHANGE RATE AND INFLATION RATES / INTEREST RATES AND INFLATION
RATES /IS LIFE REALLY THAT SIMPLE? 28.3 HEDGING CURRENCY RISK 767
TRANSACTION EXPOSURE AND ECONOMIC EXPOSURE / CURRENCY SPECULATION 28.4
EXCHANGE RISK AND INTERNATIONAL INVESTMENT DECISIONS 771 MORE ABOUT THE
COST OF CAPITAL 28.5 POLITICAL RISK 774 SUMMARY 776 FURTHER READING 777
WEB PROJECT 778 CONCEPT REVIEW QUESTIONS 778 QUIZ 778 PRACTICE QUESTIONS
780 CHALLENGE QUESTIONS 782 MINI-CASE: EXACTA, S.A. 782 CONTENTS P A R T
N I N E FINANCIAL PLANNING AND THE MANAGEMENT OF WORKING CAPITAL 785 C H
A P T E R 29 FINANCIAL ANALYSIS AND PLANNING 786 29.1 FINANCIAL
STATEMENTS 787 29.2 EXECUTIVE PAPER'S FINANCIAL STATEMENTS 787 THE
BALANCE SHEET / THE INCOME STATEMENT / SOURCES AND USES OF FUNDS 29.3
MEASURING EXECUTIVE PAPER'S FINANCIAL CONDITION 792 HOW MUCH HAS
EXECUTIVE PAPER BORROWED? /HOW LIQUID IS EXECUTIVE PAPER? /HOW
PRODUCTIVELY IS EXECUTIVE PAPER USING ITS ASSETS? /HOW PROFITABLE IS
EXECUTIVE PAPER? /HOW HIGHLY IS EXECUTIVE PAPER VALUED BY INVESTORS?
/THE DUPONT SYSTEM/INDUSTRY COMPARISONS 29.4 FINANCIAL PLANNING 804 29.5
FINANCIAL PLANNING MODELS 804 PITFALLS IN MODEL DESIGN / THERE IS NO
FINANCE IN FINANCIAL PLANNING MODELS 29.6 GROWTH AND EXTERNAL FINANCING
807 SUMMARY 808 FURTHER READING 809 WEB PROJECTS 810 CONCEPT REVIEW
QUESTIONS 810 QUIZ 810 PRACTICE QUESTIONS 813 CHALLENGE QUESTIONS 813 C
H A P T E R 30 WORKING CAPITAL MANAGEMENT 819 30.1 INVENTORIES 820 30.2
CREDIT MANAGEMENT 823 TERMS OF SAELE / THE PROMISE TO PAY / CREDIT
ANALYSIS / THE CREDIT DECISION / COLLECTION POLICY 30.3 CASH 830 HOW
PURCHASES ARE PAID FOR / ELECTRONIC FUNDS TRANSFER /SPEEDING UP CHECK
COLLECTIONS /INTERNATIONAL CASH MANAGEMENT / PAYING FOR BANK SERVICES
30.4 MARKETABLE SECURITIES 836 CALCULATING THE YIELD ON MONEY-MARKET
INVESTMENTS / YIELDS ON MONEY-MARKET INVESTMENTS / THE INTERNATIONAL
MONEY MARKET /MONEY-MARKET INSTRUMENTS SUMMARY 842 FURTHER READING 844
WEB PROJECTS 844 CONCEPT REVIEW QUESTIONS 845 QUIZ 845 PRACTICE
QUESTIONS 847 CHALLENGE QUESTIONS 849 C H A P T E R 31 SHORT-TERM
FINANCIAL PLANNING 851 31.1 LINKS BETWEEN LONG-TERM AND SHORT-TERM
FINANCING DECISIONS 852 31.2 TRACING CHANGES IN CASH AND WORKING CAPITAL
855 TRACING CHANGES IN NET WORKING CAPITAL /PROFITS AND CASH FLOW 31.3
CASH BUDGETING 859 PREPARING THE CASH BUDGET: INFLOW / PREPARING THE
CASH BUDGET: OUTFLOW 31.4 THE SHORT-TERM FINANCING PLAN 862 OPTIONSFOR
SHORT-TERM FINANCING/'DYNAMIC'S FINANCING PLAN / EVALUATING THE PLAN IA
NOTE ON SHORT- TERM FINANCIAL PLANNING MODELS 31.5 SOURCES OF SHORT-TERM
BORROWING 865 BANK LOANS / COMMERCIAL PAPER / MEDIUM-TERM NOTES SUMMARY
872 FURTHER READING 874 WEB PROJECT 874 CONCEPT REVIEW QUESTIONS 874
QUIZ 875 PRACTICE QUESTIONS 876 CHALLENGE QUESTIONS 879 P A R T T E N
MERGERS, CORPORATE CONTROL, AND GOVERNANCE 881 C H A P T E R 32 MERGERS
882 32.1 SENSIBLE MOTIVES FOR MERGERS 882 ECONOMIES OF SCALE / ECONOMIES
OF VERTICAL INTEGRATION / COMPLEMENTARY RESOURCES / SURPLUS FUNDS /
ELIMINATING INEFFICIENCIES / INDUSTRY CONSOLIDATION 32.2 SOME DUBIOUS
REASONS FOR MERGERS 888 DIVERSIFICATION /INCREASING EARNINGS PER SHARE:
THE BOOTSTRAP GAME /LOWER FINANCING COSTS XXVI CONTENTS 32.3 ESTIMATING
MERGER GAINS AND COSTS 891 RIGHT AND WRONG WAYS TO ESTIMATE THE BENEFITS
OF MERGERS /MORE ON ESTIMATING COSTS * WHAT IFTHE TARGET'S STOCK PRICE
ANTICIPATES THE MERGER? / ESTIMATING COST WHEN THE MERGER IS FINANCED BY
STOCK I ASYMMETRIE INFORMATION 32.4 THE MECHANICS OF A MERGER 896
MERGERS, ANTITRUST LAW, AND POPULAER OPPOSITION I THE FORM OF ACQUISITION
/MERGER ACCOUNTING /SOME TAX CONSIDERATIONS 32.5 PROXY FIGHTS,
TAKEOVERS, AND THE MARKET FOR CORPORATE CONTROL 900 PROXY CONTESTS /
TAKEOVERS / ORACLE BIDSFOR PEOPLESCFT / TAKEOVER DEFENSES / WHO GAINS
MOST IN MERGERS? 32.6 MERGERS AND THE ECONOMY 907 MERGER WAVES / DO
MERGERS GENERATE NET BENEFITS? SUMMARY 909 FURTHER READING 909 CONCEPT
REVIEW QUESTIONS 910 QUIZ 910 PRACTICE QUESTIONS 911 CHALLENGE QUESTIONS
913 APPENDIX: CONGLOMERATE MERGERS AND VALUE ADDITIVITY 913 C H A P T E
R 33 CORPORATE RESTRUCTURING 916 33.1 LEVERAGED BUYOUTS 917 RJR NABISCO
/BARBARIANS AT THE GATE? /LEVERAGED RESTRUCTURINGS / LBOS AND LEVERAGED
RESTRUCTURINGS 33.2 FUSION AND FISSION IN CORPORATE FINANCE 921
SPIN-OFFS I CARVE-OUTS / ASSET SALES / PRIVATIZATION 33.3 PRIVATE EQUITY
927 PRIVATE-EAUITY PARTNERSHIPS /ARE PRIVATE-EQUITY FUNDS TODAY 'S
CONGLOMERATES? 33.4 BANKRUPTCY 933 IS CHAPTER 11 EFFICIENT? / WORKOUTS
/ALTERNATIVE BANKRUPTCY PROCEDURES SUMMARY 938 FURTHER READING 939
CONCEPT REVIEW QUESTIONS 940 QUIZ 940 PRACTICE QUESTIONS 941 C H A P T E
R 34 GOVERNANCE AND CORPORATE CONTROL AROUND THE WORLD 943 34.1
FINANCIAL MARKETS AND INSTITUTIONS 944 INVESTOR PROTECTION AND THE
DEVELOPMENT OF FINANCIAL MARKETS 34.2 OWNERSHIP, CONTROL, AND GOVERNANCE
948 OWNERSHIP AND CONTROL IN JAPAN / OWNERSHIP AND CONTROL IN GERMANY /
EUROPEAN BOARDS OFDIRECTORS / OWNERSHIP AND CONTROL IN OTHER COUNTRIES /
CONGLOMERATES REVISITED 34.3 DO THESE DIFFERENCES MATTER? 957 RISK AND
SHORT-TERMISM / GROWTH INDUSTRIES AND DECLINING INDUSTRIES /
TRANSPARENCY AND GOVERNANCE SUMMARY 961 FURTHER READING 963 CONCEPT
REVIEW QUESTIONS 963 QUIZ 963 PRACTICE QUESTIONS 964 P A R T E L E V E N
CONCLUSION 966 C H A P T E R 35 CONCLUSION: WHAT WE DO AND DO NOT KNOW
ABOUT FINANCE 966 35.1 WHAT WE DO KNOW: THE SEVEN MOST IMPORTANT IDEAS
IN FINANCE 966 1. NET PRESENT VALUE / 2. THE CAPITAL ASSET PRICING
MODEL/3. EFFICIENT CAPITAL MARKETS /4. VALUE ADDITIVITY AND THE LAW OF
CONSERVATION OF VALUE / 5. CAPITAL STRUCTURE THEORY / 6. OPTION THEORY /
7. AGENCY THEORY 35.2 WHAT WE DO NOT KNOW: 10 UNSOLVED PROBLEMS IN
FINANCE 969 1. WHAT DETERMINES PROJECT RISK AND PRESENT VALUE? / 2. RISK
AND RETURN * WHAT HAVE WE MISSED? / 3. HOW IMPORTANT ARE THE EXCEPTIONS
TO THE EFFICIENT-MARKET THEORY? 14. IS MANAGEMENT AN OFF-BALANCE-SHEET
LIABILITY? / 5. HOW CAN WE EXPLAIN THE SUCCESS OFNEW SECURITIES AND NEW
MARKETS? / 6. HOW CAN WE RESOLVE THE PAYOUT CONTROVERSY? /7. WHAT RISKS
SHOULD A FIRM TAKE? / 8. WHAT IS THE VALUE OFLIQUIDITY? / 9. HOW CAN WE
EXPLAIN MERGER WAVES? /10. HOW CAN WE EXPLAIN INTERNATIONAL DIFFERENCES
IN FINANCIAL ARCHITECTURE? 35.3 A FINAL WORD 976 APPENDIX A PRESENT
VALUE TABLES A APPENDIX B ANSWERS TO QUIZZES B GLOSSARY G GLOBAL INDEX
1-1 GENERAL INDEX 1-7 * XXVLL |
| any_adam_object | 1 |
| any_adam_object_boolean | 1 |
| author | Brealey, Richard A. 1936- Myers, Stewart C. 1940- Allen, Franklin 1956- |
| author_GND | (DE-588)124289401 (DE-588)129325023 (DE-588)136922465 |
| author_facet | Brealey, Richard A. 1936- Myers, Stewart C. 1940- Allen, Franklin 1956- |
| author_role | aut aut aut |
| author_sort | Brealey, Richard A. 1936- |
| author_variant | r a b ra rab s c m sc scm f a fa |
| building | Verbundindex |
| bvnumber | BV023238931 |
| callnumber-first | H - Social Science |
| callnumber-label | HG4026 |
| callnumber-raw | HG4026 |
| callnumber-search | HG4026 |
| callnumber-sort | HG 44026 |
| callnumber-subject | HG - Finance |
| classification_rvk | QP 700 SK 980 |
| classification_tum | WIR 680f |
| ctrlnum | (OCoLC)254375752 (DE-599)BVBBV023238931 |
| dewey-full | 658.15 |
| dewey-hundreds | 600 - Technology (Applied sciences) |
| dewey-ones | 658 - General management |
| dewey-raw | 658.15 |
| dewey-search | 658.15 |
| dewey-sort | 3658.15 |
| dewey-tens | 650 - Management and auxiliary services |
| discipline | Mathematik Wirtschaftswissenschaften |
| discipline_str_mv | Mathematik Wirtschaftswissenschaften |
| edition | 9. ed., internat. ed. |
| format | Book |
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| genre_facet | Einführung Lehrbuch |
| id | DE-604.BV023238931 |
| illustrated | Illustrated |
| index_date | 2024-07-02T20:23:10Z |
| indexdate | 2024-07-09T21:13:50Z |
| institution | BVB |
| isbn | 9780071266758 9780071263276 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-016424505 |
| oclc_num | 254375752 |
| open_access_boolean | |
| owner | DE-473 DE-BY-UBG DE-1047 DE-Aug4 DE-521 DE-858 DE-91 DE-BY-TUM DE-M382 DE-703 DE-861 DE-11 DE-1102 DE-523 DE-188 DE-706 DE-1049 DE-19 DE-BY-UBM |
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| physical | Getr. Zählung graph. Darst. |
| publishDate | 2008 |
| publishDateSearch | 2008 |
| publishDateSort | 2008 |
| publisher | McGraw-Hill |
| record_format | marc |
| series2 | The McGraw-Hill/Irwin series in finance, insurance, and real estate : Financial management |
| spelling | Brealey, Richard A. 1936- Verfasser (DE-588)124289401 aut Principles of corporate finance Richard A. Brealey ; Stewart C. Myers ; Franklin Allen 9. ed., internat. ed. Boston [u.a.] McGraw-Hill 2008 Getr. Zählung graph. Darst. txt rdacontent n rdamedia nc rdacarrier The McGraw-Hill/Irwin series in finance, insurance, and real estate : Financial management 8. Aufl. u.d.T.: Brealey, Richard A.: Corporate finance Glossar enthalten / Glossary included - 52 Lehrbuch / Textbook - 28 Unternehmensfinanzierung / Betriebliche Finanzwirtschaft / Theorie Corporations Finance Finanzmanagement (DE-588)4139075-1 gnd rswk-swf Corporate Finance (DE-588)4269795-5 gnd rswk-swf Finanzplanung (DE-588)4017200-4 gnd rswk-swf Finanzierung (DE-588)4017182-6 gnd rswk-swf Unternehmen (DE-588)4061963-1 gnd rswk-swf 1\p (DE-588)4151278-9 Einführung gnd-content 2\p (DE-588)4123623-3 Lehrbuch gnd-content Unternehmen (DE-588)4061963-1 s Finanzierung (DE-588)4017182-6 s Corporate Finance (DE-588)4269795-5 s 3\p DE-604 Finanzplanung (DE-588)4017200-4 s 4\p DE-604 Finanzmanagement (DE-588)4139075-1 s 5\p DE-604 Myers, Stewart C. 1940- Verfasser (DE-588)129325023 aut Allen, Franklin 1956- Verfasser (DE-588)136922465 aut GBV Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=016424505&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis 1\p cgwrk 20201028 DE-101 https://d-nb.info/provenance/plan#cgwrk 2\p cgwrk 20201028 DE-101 https://d-nb.info/provenance/plan#cgwrk 3\p cgwrk 20201028 DE-101 https://d-nb.info/provenance/plan#cgwrk 4\p cgwrk 20201028 DE-101 https://d-nb.info/provenance/plan#cgwrk 5\p cgwrk 20201028 DE-101 https://d-nb.info/provenance/plan#cgwrk |
| spellingShingle | Brealey, Richard A. 1936- Myers, Stewart C. 1940- Allen, Franklin 1956- Principles of corporate finance Glossar enthalten / Glossary included - 52 Lehrbuch / Textbook - 28 Unternehmensfinanzierung / Betriebliche Finanzwirtschaft / Theorie Corporations Finance Finanzmanagement (DE-588)4139075-1 gnd Corporate Finance (DE-588)4269795-5 gnd Finanzplanung (DE-588)4017200-4 gnd Finanzierung (DE-588)4017182-6 gnd Unternehmen (DE-588)4061963-1 gnd |
| subject_GND | (DE-588)4139075-1 (DE-588)4269795-5 (DE-588)4017200-4 (DE-588)4017182-6 (DE-588)4061963-1 (DE-588)4151278-9 (DE-588)4123623-3 |
| title | Principles of corporate finance |
| title_auth | Principles of corporate finance |
| title_exact_search | Principles of corporate finance |
| title_exact_search_txtP | Principles of corporate finance |
| title_full | Principles of corporate finance Richard A. Brealey ; Stewart C. Myers ; Franklin Allen |
| title_fullStr | Principles of corporate finance Richard A. Brealey ; Stewart C. Myers ; Franklin Allen |
| title_full_unstemmed | Principles of corporate finance Richard A. Brealey ; Stewart C. Myers ; Franklin Allen |
| title_short | Principles of corporate finance |
| title_sort | principles of corporate finance |
| topic | Glossar enthalten / Glossary included - 52 Lehrbuch / Textbook - 28 Unternehmensfinanzierung / Betriebliche Finanzwirtschaft / Theorie Corporations Finance Finanzmanagement (DE-588)4139075-1 gnd Corporate Finance (DE-588)4269795-5 gnd Finanzplanung (DE-588)4017200-4 gnd Finanzierung (DE-588)4017182-6 gnd Unternehmen (DE-588)4061963-1 gnd |
| topic_facet | Glossar enthalten / Glossary included - 52 Lehrbuch / Textbook - 28 Unternehmensfinanzierung / Betriebliche Finanzwirtschaft / Theorie Corporations Finance Finanzmanagement Corporate Finance Finanzplanung Finanzierung Unternehmen Einführung Lehrbuch |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=016424505&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
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