Fundamentals of Corporate Finance 8th edition: Solutions Manual

Ngày tải lên: 20/12/2013, 17:15

... Cost of Capital Principles of Corporate Finance Brealey and Myers Sixth Edition Chapter 2 41 Short Cuts w Sometimes there are shortcuts that make it very easy to calculate the present value of ... Years FV of $1 10% Simple 10% Compound 20 Rate of Return Rule w Accept investments that offer rates of return in excess of their opportunity cost of capital. Example In the...

Ngày tải lên: 17/01/2014, 02:20

Ngày tải lên: 22/02/2014, 06:20

... limited number of years is called an annuity. The present value of a stream of cash flows is simply the sum of the present value of each individual cash flow. Similarly, the future value of an annuity ... immediately instead of at the end of the first period. a. Why is the present value of an annuity due equal to (1 + r) times the present value of an ordinary annuity? b. W...

Ngày tải lên: 31/03/2014, 22:21

... Maximize Firm Value? Snippets of History Summary Selected material from FUNDAMENTALS OF CORPORATE FINANCE, Third Edition with additional material from FUNDAMENTALS OF CORPORATE FINANCE, Alternate Fifth ... from: Fundamentals of Corporate Finance, Third Edition by Richard A. Brealey, Stewart C. Myers, and Alan J. Marcus. Copyright © 2001, 1999, 1995, by The McGraw-Hill C...

Ngày tải lên: 28/06/2014, 10:20

... horizon of t years, the original $100 investment will grow to $100 × (1.06) t . For an interest rate of r and a horizon of t years, the future value of your investment will be Future value of $100 ... cost of $15 billion. 1988 Mergers. The 1980s saw a wave of takeovers culminating in the $25 billion takeover of RJR Nabisco. Over a period of 6 weeks three groups bat- tled for...

Ngày tải lên: 28/06/2014, 23:20

... = $25 Solutions Manual Fundamentals of Corporate Finance 8 th edition Ross, Westerfield, and Jordan Updated 03-05-2007 B-28 SOLUTIONS Market-to-book ratio ... Therefore, the study of corporate finance is concentrated within the treasury group’s functions. 6. To maximize the current market value (share price) of the equity of th...

Ngày tải lên: 01/07/2014, 14:22

... the last of the leading investment-bank part- nerships, issued shares and became a public corporation in 19 98. Brealey−Meyers: Principles of Corporate Finance, Seventh Edition I. Value 1. Finance ... invest- ments. We discuss international corporate finance at many different points in the chapters that follow. Brealey−Meyers: Principles of Corporate Finance, Seven...

Ngày tải lên: 06/07/2014, 08:20

... Ethics: The Case of Salomon Broth- ers,” Journal of Applied Corporate Finance 5 (Summer 19 92) , pp. 23 28 . Brealey−Meyers: Principles of Corporate Finance, Seventh Edition I. Value 2. Present Value ... in- vestment plus interest of .07 ϫ 373,8 32 ϭ $26 ,168. The total sum you receive is 373,8 32 ϩ 26 ,168 ϭ $400,000. Note that 373,8 32 ϫ 1.07 ϭ $400,000. Brealey−M...

Ngày tải lên: 06/07/2014, 08:20

... ϭ 121 3 120 ϩ 10 ϭ 130 121 ϩ 12.1 ϭ 133 .1 4 130 ϩ 10 ϭ 140 133 .1 ϩ 13. 3 ϭ 146.4 10 190 ϩ 10 ϭ 200 236 ϩ 24 ϭ 259 20 290 ϩ 10 ϭ 30 0 612 ϩ 61 ϭ 6 73 50 590 ϩ 10 ϭ 600 10,672 ϩ 1,067 ϭ 11, 739 100 ... r 1 ϩ C 2 11 ϩ r 2 2 2 ϩ C 3 11 ϩ r 3 2 3 ϩ … PV ϭ C 1 1 ϩ r 1 ϩ C 2 11 ϩ r 2 2 2 34 PART I Value Brealey−Meyers: Principles of Corporate Finance, Seventh Edition I. Val...

Ngày tải lên: 06/07/2014, 08:20

... flow 5. 84 6 .40 7 .41 8. 74 9.39 Depreciation 1 .45 1.60 1.75 1.97 2.22 Pretax profits 4. 38 4. 80 5.66 6.77 7.17 Tax 1.53 1.68 1.98 2.37 2.51 Aftertax profits 2.85 3.12 3.68 4. 40 4. 66 TABLE 4. 8 Summary ... 10.7% TABLE 4. 2 DCF cost -of- equity estimates for electric utilities in 2001. Source: The Brattle Group, Inc. Brealey−Meyers: Principles of Corporate Finance, Seven...

Ngày tải lên: 06/07/2014, 08:20

... ϩ 800 1. 152 ϩ 150 11. 152 2 2 ϩ 150 11. 152 2 3 ϩ 150 11. 152 2 4 ϩ 150 11. 152 2 5 NPV ϭϪ1,000 ϩ 800 .50 ϩ 150 1 .50 2 2 ϩ 150 1 .50 2 3 ϩ 150 1 .50 2 4 ϩ 150 1 .50 2 5 Ϫ 150 1 .50 2 6 ϭ 0 4 By Descartes’s “rule of signs” ... 400 /5 = 80, or $80,000 per year. † Capital investment is $400,000 in year 0. Year 12 3 456 7 1. Revenue 140 140 140 140 140 140 140 2. Ope...

Ngày tải lên: 06/07/2014, 08:20

... 7.70 6. 18 5 11.52 8.93 9.22 6. 93 5.71 6 5. 76 8.93 7.37 6. 23 5.28 7 8.93 6. 55 5.90 4.89 8 4.45 6. 55 5.90 4.52 9 6. 55 5.90 4. 46 10 6. 55 5.90 4. 46 11 3.29 5.90 4. 46 12 5.90 4. 46 13 5.90 4. 46 14 ... flow (5 ϩ 6 ϩ 7) Ϫ12 ,60 0 Ϫ1 ,63 0 2,381 6, 205 10 ,68 5 10,1 36 6,110 3,444 9. Present value at 20% Ϫ12 ,60 0 Ϫ1,358 1 ,65 4 3,591 5,153 4,074 2,0 46 961 Net prese...

Ngày tải lên: 06/07/2014, 08:20

... The standard deviation of a well- Brealey−Meyers: Principles of Corporate Finance, Seventh Edition II. Risk 7. Introduction to Risk, Return, and the Opportunity Cost of Capital © The McGraw−Hill ... the net profit per play is the payoff less $100. Brealey−Meyers: Principles of Corporate Finance, Seventh Edition II. Risk 7. Introduction to Risk, Return, and the...

Ngày tải lên: 06/07/2014, 08:20