Principles of Corporate Finance 13th Edition Brealey Myers Allen

This book describes the theory and practice of corporate finance. We hardly need to explain why financial managers have to master the practical aspects of their job, but we should spell out why down-to-earth managers need to bother with theory.

Managers learn from experience how to cope with routine problems. But the best managers are also able to respond to change. To do so you need more than timehonored rules of thumb; you must understand why companies and financial markets behave the way they do. In other words, you need a theory of finance.

I Part One: Value

1 Introduction to Corporate Finance 1

2 How to Calculate Present Values 20

3 Valuing Bonds 46

4 The Value of Common Stocks 77

5 Net Present Value and Other Investment

Criteria 108

6 Making Investment Decisions with the Net Present

Value Rule 135

I Part Two: Risk

7 Introduction to Risk and Return 167

8 Portfolio Theory and the Capital Asset Pricing

Model 198

9 Risk and the Cost of Capital 228

I Part Three: Best Practices in Capital

Budgeting

10 Project Analysis 257

11 How to Ensure that Projects Truly Have Positive

NPVs 284

12 Agency Problems and Investment 311

I Part Four: Financing Decisions and

Market Efficiency

13 Efficient Markets and Behavioral Finance 337

14 An Overview of Corporate Financing 365

15 How Corporations Issue Securities 391

I Part Five: Payout Policy and Capital

Structure

16 Payout Policy 425

17 Does Debt Policy Matter? 451

18 How Much Should a Corporation Borrow? 475

19 Financing and Valuation 507

I Part Six: Options

20 Understanding Options 542

21 Valuing Options 563

22 Real Options 590

I Part Seven: Debt Financing

23 Credit Risk and the Value of Corporate Debt 614

24 The Many Different Kinds of Debt 631

25 Leasing 663

I Part Eight: Risk Management

26 Managing Risk 683

27 Managing International Risks 717

I Part Nine: Financial Planning and Working

Capital Management

28 Financial Analysis 743

29 Financial Planning 770

30 Working Capital Management 801

I Part Ten: Mergers, Corporate Control, and

Governance

31 Mergers 830

32 Corporate Restructuring 863

33 Governance and Corporate Control around the

World 888

I Part Eleven: Conclusion