Principles of Corporate Finance

Richard A. Brealey is a Professor of Finance at the London Business School. He is the former president of the European Finance Association and a former director of the American Finance Association. He is a fellow of the British Academy and has served as a special adviser to the Governor of the Bank of England and as director of a number of financial institutions. Professor Brealey is also the author (with Professor Myers) of this books sister text, Principles of Corporate Finance. Stewart C. Myers is the Gordon Y Billard Professor of Finance at MITs Sloan School of Management. He is past president of the American Finance Association and a research associate of the National Bureau of Economic Research. His research has focused on financing decisions, valuation methods, the cost of capital, and financial aspects of government regulation of business. Dr. Myers is a director of The Brattle Group, Inc., and is active as a financial consultant. He is also the author (with Professor Brealey) of this books sister text, Principles of Corporate Finance. Professor of Finance and Economics, Imperial College London, and Nippon Life Professor of Finance at the Wharton School of the University of Pennsylvania. He is past president of the American Finance Association, Western Finance Association, Society for Financial Studies, Financial Intermediation Research Society, and Financial Management Association. His research has focused on financial innovation, asset price bubbles, comparing financial systems, and financial crises. He is executive director of the Brevan Howard Centre for Financial Analysis at Imperial College Business School.

Part One: ValueChapter: 1. Introduction to Corporate FinanceChapter: 2. How to Calculate Present ValuesChapter: 3. Valuing BondsChapter: 4. The Value of Common StocksChapter: 5. Net Present Value and Other Investment CriteriaChapter: 6. Making Investment Decisions with the Net Present Value RulePart Two: RiskChapter: 7. Introduction to Risk and ReturnChapter: 8. Portfolio Theory and the Capital Asset Pricing ModelChapter: 9. Risk and the Cost of CapitalPart Three: Best Practices in Capital BudgetingChapter: 10. Project AnalysisChapter: 11. Investment, Strategy, and Economic RentsChapter: 12. Agency Problems, Compensation, and Performance MeasurementPart Four: Financing Decisions and Market EfficiencyChapter: 13. Efficient Markets and Behavioral FinanceChapter: 14. An Overview of Corporate FinancingChapter: 15. How Corporations Issue SecuritiesPart Five: Payout Policy and Capital StructureChapter: 16. Payout PolicyChapter: 17. Does Debt Policy Matter?Chapter: 18. How Much Should a Corporation Borrow?Chapter: 19. Financing and ValuationPart Six: OptionsChapter: 20. Understanding OptionsChapter: 21. Valuing OptionsChapter: 22. Real OptionsPart Seven: Debt FinancingChapter: 23. Credit Risk and the Value of Corporate DebtChapter: 24. The Many Different Kinds of DebtChapter: 25. LeasingPart Eight: Risk ManagementChapter: 26. Managing RiskChapter: 27. Managing International RisksPart Nine: Financial Planning and Working Capital ManagementChapter: 28. Financial AnalysisChapter: 29. Financial PlanningChapter: 30. Working Capital ManagementPart Ten: Mergers, Corporate Control, and GovernanceChapter: 31. MergersChapter: 32. Corporate RestructuringChapter: 33. Governance and Corporate Control Around the WorldPart Eleven: ConclusionChapter: 34. Conclusion: What We Do and Do Not Know About Finance