Fundamentals of Corporate Finance

Fundamentals of Corporate Finance

7th Edition | See Newer Edition

By Richard Brealey and Stewart Myers and Alan Marcus

  • Copyright: 2012

  • Publication Date: Sep 14 2011

  • ISBN 10: 0078034647

  • ISBN 13: 9780078034640

Description

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Fundamentals of Corporate Finance, by Brealey, Myers and Marcus, provides students with a solid framework of theory and application to use well after they complete the course. This auth

Fundamentals of Corporate Finance, by Brealey, Myers and Marcus, provides students with a solid framework of theory and application to use well after they complete the course. This author team is known for their outstanding research, teaching efforts, and world-renowned finance textbooks, so it's no surprise that they provide clear exposition of difficult material without sacrificing up-to-date, technically correct treatments. The seventh edition has been fully updated to reflect recent events and is now available with Connect Finance!

  • Language: English

  • Imprint: Irwin/McGraw-Hill

  • Dimension: 8.7 x 11.2

  • Page Count: 784

New Features

  • McGraw-Hill?s Connect Finance offers a number of powerful tools and features to make managing assignments easier and the learning process more accessible and efficient.
    • Create and deliver online, auto-graded homework assignments, quizzes, and tests directly from the end-of-chapter materials or test bank.
    • A Self Quiz and Study program allows students to evaluate their performance through a practice test and then receive recommendations for specific readings from the text, supplemental study material, and practice work that will improve their mastery of each learning objective.
    • Prep Courses for Math, Statistics, Accounting, and Economics are comprised of animated tutorial modules with quiz questions to get students up to speed on the basics.
    • Questions mapped to AACSB skill areas, Bloom?s Taxonomy levels, and difficulty level enable you to run reports that assess specific learning outcomes.
  • Connect Plus Finance. This packaging option combines all the great features of Connect Finance, along with access to an online version of Fundamentals of Corporate Finance, linked to additional study features, so that students can easily refer back to the text for review and guidance.
  • Updated Topic Coverage:
    • To reflect the increased attention on agency theory and behavioral finance, the material on efficient markets in Chapter 7 (Valuing Stocks) now includes a section on price bubbles as well as a discussion of behavioral biases. Other topics that receive increased emphasis include company valuation, real options, and stock repurchases.
    • There are plenty of references in this edition to the crisis of 2007-2009 and its impact on financial managers, and there are also many less dramatic examples of recent changes in the financial landscape. For example, Chapter 3 (Accounting and Finance) includes a discussion of SOX, of mark-to-market accounting, and of recent developments in international accounting standards.
    • All statistics have been updated when appropriate, including measures of EVA, data on security ownership, bond yields, and dividend and repurchase payouts.
  • Improved Flow:
  • Chapter 4 emphasises how financial ratios are used in measuring the value management has added to a firm. This context prevents the chapter from becoming a tedious list of ratios. This introduction prevents the chapter from becoming a tedious list of ratios.
  • The discussion of the internal rate of return and its pitfalls in Chapter 8 (Net Present Value and Other Investment Criteria) has been reworked to make the discussion of IRR flow more easily.
  • Spreadsheet Solutions Boxes demonstrate how students may use Microsoft Excel to perform useful financial calculations demonstrate how students may use Microsoft Excel to perform useful financial calculations. Questions have been added at the end of each box so students can perform their own similar analysis to make sure they understand the concept. Students who need assistance in using Microsoft Excel can refer to the student side of the Online Learning Center that contains a detailed Excel tutorial with spreadsheet templates.
  • Key Features

    • Includes an important discussion of ethical issues facing financial managers. This content is more important than ever given the recent corporate scandals that have impacted investor confidence, financial markets and the economy as a whole.
    • Excellent end of chapter material is a hallmark of this text. The problems are designated by learning objective, degree of difficulty as quizzes, practice problems, and challenge problems. This range gives instructors significant flexibility when assigning homework.
    • Financial Calculator Boxes help students use a financial calculator to solve finance problems. These appear close to the spreadsheets to show both ways of solving problems.
    • Mini-Cases appear in select chapters, and have specific questions that follow each case. This popular feature helps students apply finance theory to real-world situations.
    • Numbered Examples are integrated into each chapter. Students can learn how to solve problems step-by-step as well as gain insight into general principles by seeing how they are applied to answer concrete questions and scenarios.
      • Spreadsheet Solutions boxes Additional questions have been added to these boxes so students can try out a new scenario.
      • Significant integration of Excel Select end of chapter problems will have an accompanying Excel template on the OLC at www.mhhe.com/bmm7e
      • Excel Exhibits Selected exhibits from the book are set as Excel spreadsheets and are found online at www.mhhe.com/bmm7e.
      • Excellent end of chapter material The problems are designated by degree of difficulty as quizzes, practice problems, and challenge problems.
      • Mini-Cases More comprehensive problems that appear in selected chapters.
      • Connect Finance & Connect Plus Finance. Facilitates student learning and optimizes time in order to focus on course content and teaching.
      • Learning Objectives Appear at the beginning of each chapter and are tied to the end-of-chapter material and test bank questions.

    Format

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    Fundamentals of Corporate Finance

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    Part One Introduction

    1 Goals and Governance of the Firm

    2 Financial Markets and Institutions

    3 Accounting and Finance

    4 Measuring Corporate Performance

    Part Two Value <

    Table of Contents

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    Part One Introduction

    1 Goals and Governance of the Firm

    2 Financial Markets and Institutions

    3 Accounting and Finance

    4 Measuring Corporate Performance

    Part Two Value

    5 The Time Value of Money

    6 Valuing Bonds

    7 Valuing Stocks

    8 Net Present Value and Other Investment Criteria

    9 Using Discounted Cash-Flow Analysis to Make Investment Decisions

    10 Project Analysis

    Part Three Risk

    11 Introduction to Risk, Return, and the Opportunity Cost of Capital

    12 Risk, Return, and Capital Budgeting

    13 The Weighted-Average Cost of Capital and Company Valuation

    Part Four Financing

    14 Introduction to Corporate Financing

    15 How Corporations Raise Venture Capital and Issue Securities

    Part Five Debt and Payout Policy

    16 Debt Policy

    17 Payout Policy

    Part Six Financial Analysis and Planning

    18 Long-Term Financial Planning

    19 Short-Term Financial Planning

    20 Working Capital Management

    Part Seven Special Topics

    21 Mergers, Acquisitions, and Corporate Control

    22 International Financial Management

    23 Options

    24 Risk Management

    Part Eight Conclusion

    25 What We Do and Do Not Know about Finance

    Appendix A

    Appendix B

    Glossary

    Credits

    Global Index

    Index

    More

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    About the Authors

    Richard Brealey

    Stewart Myers

    Alan Marcus

    Alan Marcus is professor of finance in the Wallace E. Carroll School of Management at Boston College. He received his PHD in Economics from MIT in 1981. Professor Marcus recently has been a visiting professor at the Athens Laboratory of Business Administration and at MIT?s Sloan School of Management and has served as a research associate at the National Bureau of Economic Research. He also established the Chartered Financial Analysts Review Program at Boston College. Professor Marcus has published widely in the fields of capital markets and portfolio management, with an emphasis on applications of futures and options pricing models. His consulting work has ranged from new product development to provision of expert testimony in utility rate proceedings. He also spend two years at the Federal Home Loan Mortgage Corporation (Freddie Mac), where he developed models of mortgage pricing and credit risk, and he currently serves on the Advisory Council for the Currency Risk Management Alliance of State Street Bank and Windham Capital Management Boston.