Fundamentals of corporate finance

by Richard Brealy.
Bok · Engelsk · 2019 Richard A. Brealey

Utgitt	NY : : McGraw-Hill US Higher Ed ISE, , 2019.
Omfang	1 online resource (798 pages)
Utgave	10th ed.
Opplysninger	Cover -- Title -- Copyright -- About The Authors -- Preface -- Acknowledgments -- Contents in Brief -- Contents -- Part One: Introduction -- Chapter 1 Goals and Governance of the Corporation -- 1.1 Investment and Financing Decisions -- The Investment (Capital Budgeting) Decision -- The Financing Decision -- 1.2 What Is a Corporation? -- Other Forms of Business Organization -- 1.3 Who Is the Financial Manager? -- 1.4 Goals of the Corporation -- Shareholders Want Managers to Maximize Market Value -- 1.5 Agency Problems, Executive Compensation, and Corporate Governance -- Executive Compensation -- Corporate Governance -- 1.6 The Ethics of Maximizing Value -- 1.7 Careers in Finance -- 1.8 Preview of Coming Attractions -- 1.9 Snippets of Financial History -- Summary -- Questions and Problems -- Chapter 2 Financial Markets and Institutions -- 2.1 The Importance of Financial Markets and Institutions -- 2.2 The Flow of Savings to Corporations -- The Stock Market -- Other Financial Markets -- Financial Intermediaries -- Financial Institutions -- Total Financing of U.S. Corporations -- 2.3 Functions of Financial Markets and Intermediaries -- Transporting Cash across Time -- Risk Transfer and Diversification -- Liquidity -- The Payment Mechanism -- Information Provided by Financial Markets -- 2.4 The Crisis of 2007-2009 -- Summary -- Questions and Problems -- Chapter 3 Accounting and Finance -- 3.1 The Balance Sheet -- Book Values and Market Values -- 3.2 The Income Statement -- Income versus Cash Flow -- 3.3 The Statement of Cash Flows -- Free Cash Flow -- 3.4 Accounting Practice and Malpractice -- 3.5 Taxes -- Corporate Tax -- Personal Tax -- Summary -- Questions and Problems -- Chapter 4 Measuring Corporate Performance -- 4.1 How Financial Ratios Relate to Shareholder Value -- 4.2 Measuring Market Value and Market Value Added.. - 11.5 Thinking about Risk -- Message 1: Some Risks Look Big and Dangerous but Really Are Diversifiable -- Message 2: Market Risks Are Macro Risks -- Message 3: Risk Can Be Measured -- Summary -- Questions and Problems -- Chapter 12 Risk, Return, and Capital Budgeting -- 12.1 Measuring Market Risk -- Measuring Beta -- Betas for Ford and PG&amp -- E -- Total Risk and Market Risk -- 12.2 What Can You Learn from Beta? -- Portfolio Betas -- The Portfolio Beta Determines the Risk of a Diversified Portfolio -- 12.3 Risk and Return -- Why the CAPM Makes Sense -- The Security Market Line -- Using the CAPM to Estimate Expected Returns -- How Well Does the CAPM Work? -- 12.4 The CAPM and the Opportunity Cost of Capital -- The Company Cost of Capital -- What Determines Project Risk? -- Don't Add Fudge Factors to Discount Rates -- Summary -- Questions and Problems -- Chapter 13 The Weighted-Average Cost of Capital and Company Valuation -- 13.1 Geothermal's Cost of Capital -- 13.2 The Weighted-Average Cost of Capital -- Calculating Company Cost of Capital as a Weighted Average -- Use Market Weights, Not Book Weights -- Taxes and the Weighted-Average Cost of Capital -- What If There Are Three (or More) Sources of Financing? -- The NPV of Geothermal's Expansion -- Checking Our Logic -- 13.3 Interpreting the Weighted-Average Cost of Capital -- When You Can and Can't Use WACC -- Some Common Mistakes -- How Changing Capital Structure Affects Expected Returns -- What Happens When the Corporate Tax Rate Is Not Zero -- 13.4 Practical Problems: Measuring Capital Structure -- 13.5 More Practical Problems: Estimating Expected Returns -- The Expected Return on Bonds -- The Expected Return on Common Stock -- The Expected Return on Preferred Stock -- Adding It All Up -- Real-Company WACCs -- 13.6 Valuing Entire Businesses -- Calculating the Value of the Deconstruction Business.. - 4.3 Economic Value Added and Accounting Rates of Return -- Accounting Rates of Return -- Problems with EVA and Accounting Rates of Return -- 4.4 Measuring Efficiency -- 4.5 Analyzing the Return on Assets: The Du Pont System -- The Du Pont System -- 4.6 Measuring Financial Leverage -- Leverage and the Return on Equity -- 4.7 Measuring Liquidity -- 4.8 Interpreting Financial Ratios -- 4.9 The Role of Financial Ratios -- Summary -- Questions and Problems -- Minicase -- Part Two: Value -- Chapter 5 The Time Value of Money -- 5.1 Future Values and Compound Interest -- 5.2 Present Values -- Finding the Interest Rate -- 5.3 Multiple Cash Flows -- Future Value of Multiple Cash Flows -- Present Value of Multiple Cash Flows -- 5.4 Reducing the Chore of the Calculations: Part 1 -- Using Financial Calculators to Solve Simple Time-Value-of-Money Problems -- Using Spreadsheets to Solve Simple Time-Value-of-Money Problems -- 5.5 Level Cash Flows: Perpetuities and Annuities -- How to Value Perpetuities -- How to Value Annuities -- Future Value of an Annuity -- Annuities Due -- 5.6 Reducing the Chore of the Calculations: Part 2 -- Using Financial Calculators to Solve Annuity Problems -- Using Spreadsheets to Solve Annuity Problems -- 5.7 Effective Annual Interest Rates -- 5.8 Inflation and the Time Value of Money -- Real versus Nominal Cash Flows -- Inflation and Interest Rates -- Valuing Real Cash Payments -- Real or Nominal? -- Summary -- Questions and Problems -- Minicase -- Chapter 6 Valuing Bonds -- 6.1 The Bond Market -- Bond Characteristics -- 6.2 Interest Rates and Bond Prices -- How Bond Prices Vary with Interest Rates -- Interest Rate Risk -- 6.3 Yield to Maturity -- Calculating the Yield to Maturity -- 6.4 Bond Rates of Return -- 6.5 The Yield Curve -- Nominal and Real Rates of Interest -- 6.6 Corporate Bonds and the Risk of Default.. - Protecting against Default Risk -- Not All Corporate Bonds Are Plain Vanilla -- Summary -- Questions and Problems -- Chapter 7 Valuing Stocks -- 7.1 Stocks and the Stock Market -- Reading Stock Market Listings -- 7.2 Market Values, Book Values, and Liquidation Values -- 7.3 Valuing Common Stocks -- Valuation by Comparables -- Price and Intrinsic Value -- The Dividend Discount Model -- 7.4 Simplifying the Dividend Discount Model -- Case 1: The Dividend Discount Model with No Growth -- Case 2: The Dividend Discount Model with Constant Growth -- Case 3: The Dividend Discount Model with Nonconstant Growth -- 7.5 Valuing a Business by Discounted Cash Flow -- Valuing the Concatenator Business -- Repurchases and the Dividend Discount Model -- 7.6 There Are No Free Lunches on Wall Street -- Random Walks and Efficient Markets -- 7.7 Market Anomalies and Behavioral Finance -- Market Anomalies -- Bubbles and Market Efficiency -- Behavioral Finance -- Summary -- Questions and Problems -- Minicase -- Chapter 8 Net Present Value and Other Investment Criteria -- 8.1 Net Present Value -- A Comment on Risk and Present Value -- Valuing Long-Lived Projects -- Choosing between Alternative Projects -- 8.2 The Internal Rate of Return Rule -- A Closer Look at the Rate of Return Rule -- Calculating the Rate of Return for Long-Lived Projects -- A Word of Caution -- Some Pitfalls with the Internal Rate of Return Rule -- 8.3 The Profitability Index -- Capital Rationing -- Pitfalls of the Profitability Index -- 8.4 The Payback Rule -- Discounted Payback -- 8.5 More Mutually Exclusive Projects -- Problem 1: The Investment Timing Decision -- Problem 2: The Choice between Long- and Short-Lived Equipment -- Problem 3: When to Replace an Old Machine -- 8.6 A Last Look -- Summary -- Questions and Problems -- Minicase -- Appendix: More on the IRR Rule.. - Using the IRR to Choose between Mutually Exclusive Projects -- Using the Modified Internal Rate of Return When There Are Multiple IRRs -- Chapter 9 Using Discounted Cash-Flow Analysis to Make Investment Decisions -- 9.1 Identifying Cash Flows -- Discount Cash Flows, Not Profits -- Discount Incremental Cash Flows -- Discount Nominal Cash Flows by the Nominal Cost of Capital -- Separate Investment and Financing Decisions -- 9.2 Corporate Income Taxes -- 9.3 An Example-Blooper Industries -- Forecasting Blooper's Cash Flows -- Calculating the NPV of Blooper's Mine -- Further Notes and Wrinkles Arising from Blooper's Project -- Summary -- Questions and Problems -- Minicase -- Chapter 10 Project Analysis -- 10.1 How Firms Organize the Investment Process to Draw on Their Competitive Strengths -- The Capital Budget -- Problems and Some Solutions -- 10.2 Reducing Forecast Bias -- 10.3 Some "What-If" Questions -- Sensitivity Analysis -- Scenario Analysis -- 10.4 Break-Even Analysis -- Accounting Break-Even Analysis -- NPV Break-Even Analysis -- Operating Leverage -- 10.5 Real Options and the Value of Flexibility -- The Option to Expand -- A Second Real Option: The Option to Abandon -- A Third Real Option: The Timing Option -- A Fourth Real Option: Flexible Production Facilities -- Summary -- Questions and Problems -- Minicase -- Part Three: Risk -- Chapter 11 Introduction to Risk, Return, and the Opportunity Cost of Capital -- 11.1 Rates of Return: A Review -- 11.2 A Century of Capital Market History -- Market Indexes -- The Historical Record -- Using Historical Evidence to Estimate Today's Cost of Capital -- 11.3 Measuring Risk -- Variance and Standard Deviation -- A Note on Calculating Variance -- Measuring the Variation in Stock Returns -- 11.4 Risk and Diversification -- Diversification -- Asset versus Portfolio Risk -- Market Risk versus Specific Risk.
Dewey	658.15
ISBN	9781260566093. - 9781260570212