Tentamen (uitwerkingen)

Solution Manual For Principles of Corporate Finance 14th Edition By Richard Brealey Stewart Myers Franklin Allen and Alex Edmans, Complete Chapters .

0 keer verkocht

Vak
Principles of Corporate Finance

Instelling
Principles Of Corporate Finance

CHAPTER 1 Introduction to Corporate Finance The values shown in the solutions may be rounded for display purposes. However, the answers were derived using a spreadsheet without any intermediate rounding. Answers to Problem Sets 1. a. real b. executive airplanes c. brand names d. financia...

[Meer zien]

Voorbeeld 4 van de 399 pagina's

Bekijk voorbeeld

Geupload op 16 april 2024
Aantal pagina's 399
Geschreven in 2023/2024
Type Tentamen (uitwerkingen)
Bevat Vragen en antwoorden

complete chapters 1 33
principles of corporate finance
solution manual principles of corporate finance
principles of corporate finance 14th edition
by richard brealey stewart myers franklin allen

Instelling Principles of Corporate Finance
Vak Principles of Corporate Finance

Volgen

STUDYROOM2024 Lid sinds 1 jaar 333 documenten verkocht

$30.49

In winkelwagen

Opslaan

100% tevredenheidsgarantie
Direct beschikbaar na je betaling
Lees online óf als PDF
Geen vaste maandelijkse kosten

Solution Manual For Principles of Corporate Finance 14th Edition By Richard Brealey Stewart Myers Franklin Allen and Alex Edmans Complete Chapters 1-33 2024 CHAPTER 1 Introduction to Corporate Finance The values shown in the solutions may be rounded for display purposes. However, the answers were derived using a spreadsheet without any intermediate rounding. Answers to Problem Sets 1. a. real b. executive airplanes c. brand names d. financial e. bonds *f. investment or capital expenditure *g. capital budgeting or investment h. financing *Note that f and g are interchangeable in the question. Est time: 01-05 2. A trademark, a factory, undeveloped land, and your work force (c, d, e, and g) are all real assets. Real assets are identifiable as items with intrinsic value. The others in the list are financial assets, that is, these assets derive value because of a contractual claim. Est time: 01-05 3. a. Financial assets, such as stocks or bank loans, are claims held by investors. Corporations sell financial assets to raise the cash to invest in real assets such as plant and equipment. Some real assets are intangible. b. Capital expenditure means investment in real assets. Financing means raising the cash for this investment. c. The shares of public corporations are traded on stock exchanges and can be purchased by a wide range of investors. The shares of closely held corporations are not publicly traded and are held by a small group of private investors. d. Unlimited liability: Investors are responsible for all the firm‘s debts. A sole proprietor has unlimited liability. Investors in corporations have limited liability. They can lose their investment, but no more. Est time: 01-05 4. Items c and d apply to corporations. Because corporations have perpetual life, ownership can be transferred without affecting operations, and managers can be fired with no effect on ownership. Other forms of business may have unlimited liability and limited life. Est time: 01-05 5. Separation of ownership facilitates the key attributes of a corporation, including limited liability for investors, transferability of ownership, a separate legal personality of the corporation, and delegated centralized management. These four attributes provide substantial benefit for investors, including the ability to diversify their investment among many uncorrelated returns—a very valuable tool explored in later chapters. Also, these attributes allow investors to quickly exit, enter, or short sell an investment, thereby generating an active liquid market for corporations. However, these positive aspects also introduce substantial negative externalities as well. The separation of ownership from management typically leads to agency problems, where managers prefer to consume private perks or make other decisions for their private benefit—rather than maximize shareholder wealth. Shareholders tend to exercise less oversight of each individual investment as their diversification increases. Finally, the corporation‘s separate legal personality makes it difficult to enforce accountability if they externalize costs onto society. Est time: 01-05 6. Shareholders will only vote to maximize shareholder wealth. Shareholders can modify their pattern of consumption through borrowing and lending, match risk preferences, and hopefully balance their own checkbooks (or hire a qualified professional to help them with these tasks). Est time: 01-05 7. If the investment increases the firm‘s wealth, it increases the firm‘s share value. Ms. Espinoza could then sell some or all these more valuable shares to provide for her retirement income. Est time: 01-05 8. a. Assuming that the encabulator market is risky, an 8% expected return on the F&H encabulator investments may be inferior to a 4% return on U.S. government securities, depending on the relative risk between the two assets. b. Unless the financial assets are as safe as U.S. government securities, their cost of capital would be higher. The CFO could consider expected returns on assets with similar risk. Est time: 06-10 9. Managers would act in shareholders‘ interests because they have a legal duty to act in their interests. Managers may also receive compensation— bonuses, stock, and option payouts with value tied (roughly) to firm performance. Managers may fear personal reputational damage from not acting in shareholders‘ interests. And managers can be fired by the board of directors (elected by shareholders). If managers still fail to act in shareholders‘ interests, shareholders may sell their shares, lowering the stock price and potentially creating the possibility of a takeover, which can again lead to changes in the board of directors and senior management. Est time: 01-05 10. Managers that are insulated from takeovers may be more prone to agency problems and therefore more likely to act in their own interests rather than in shareholders‘. If a firm instituted a new takeover defense, we might expect to see the value of its shares decline as agency problems increase and less shareholder value maximization occurs. The counterargument is that defensive measures allow managers to negotiate for a higher purchase price in the face of a takeover bid—to the benefit of shareholder value. Est time: 01-05 Appendix Questions: 1. Both would still invest in their friend‘s business. A invests and receives $121,000 for his investment at the end of the year—which is greater than the $120,000 that would be received from lending at 20% ($100,000 × 1.20 = $120,000). G also invests, but borrows against the $121,000 payment, and thus receives $100,833 ($121,.20) today. Est time: 01-05 2. a. He could consume up to $200,000 now (forgoing all future consumption) or up to $216,000 next year ($200,000 × 1.08, forgoing all consumption this year). He should invest all of his wealth to earn $216,000 next year. To choose the same consumption ( C) in both years, C = ($200,000 – C) × 1.08 = $103,846. 203,704 200,000 220,000 216,000 Dollars Next Year Dollars Now b. He should invest all of his wealth to earn $220,000 ($200,000 × 1.10) next year. If he consumes all this year, he can now have a total of $203,703.70 ($200,000 × 1.10/1.08) this year or $220,000 next year. If he consumes C this year, the amount available for next year‘s consumption is ($203,703.70 – C) × 1.08. To get equal consumption in both years, set the amount consumed today equal to the amount next year: C = ($203,703.70 – C) × 1.08 C = $105,769.20 Est time: 06-10

Dit zijn jouw voordelen als je samenvattingen koopt bij Stuvia:

Bewezen kwaliteit door reviews

Studenten hebben al meer dan 850.000 samenvattingen beoordeeld. Zo weet jij zeker dat je de beste keuze maakt!

In een paar klikken geregeld

Geen gedoe — betaal gewoon eenmalig met iDeal, Bancontact of creditcard en je bent klaar. Geen abonnement nodig.

Focus op de essentie

Studenten maken samenvattingen voor studenten. Dat betekent: actuele inhoud waar jij écht wat aan hebt. Geen overbodige details!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.

Van wie koop ik deze samenvatting?

Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper STUDYROOM2024. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor $30.49. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

4,6 sterren op Google & Trustpilot (+1000 reviews)

Afgelopen 30 dagen zijn er 64302 samenvattingen verkocht

Opgericht in 2010, al 15 jaar dé plek om samenvattingen te kopen

Solution Manual For Principles of Corporate Finance 14th Edition By Richard Brealey Stewart Myers Franklin Allen and Alex Edmans, Complete Chapters .

Document informatie

Onderwerpen

Gekoppeld boek

Meer samenvattingen voor studieboek

Geschreven voor

Verkoper

Ontvangen beoordelingen

Voorbeeld van de inhoud

Dit zijn jouw voordelen als je samenvattingen koopt bij Stuvia:

Bewezen kwaliteit door reviews

In een paar klikken geregeld

Focus op de essentie

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Tevredenheidsgarantie: hoe werkt dat?

Van wie koop ik deze samenvatting?

Zit ik meteen vast aan een abonnement?

Is Stuvia te vertrouwen?

Laatst bekeken door jou

Samenvatting ·

Vennootschapsgeschillen op burgerlijk en strafrechtelijk vlak - Lesnotities (zeer uitgebreid) - inhoudstafel - examenuitleg (MANAMA Vennootschapsrecht KU LEUVEN) (18/20)

Essay ·

Academic Skills, Individual Assignment: The influence of growth rate of money supply and interest rates on inflation, VU, International Business Administration, Year 1

Tentamen (uitwerkingen) ·

Test Bank for Chemistry: Atoms First 2nd Edition by Paul Flowers, Edward J. Neth ,Robinson, Klaus Theopold, Richard Langely, OpenStax Chapter 1-21 Complete Guide.

Tentamen (uitwerkingen) ·

Test Bank For Critical Care Nursing- A Holistic Approach 12th Edition Morton Fontaine||ISBN NO:10 1975174453||ISBN NO:13 978-1975174453||All Chapters||Complete Guide A+

Tentamen (uitwerkingen) ·

TEST BANK For Auditing & Assurance Services: A Systematic Approach, 12th Edition By William Messier Jr, Steven Glover, Verified Chapters 1 - 21, Complete Newest Version

Tentamen (uitwerkingen) ·

AQA Level 3 Technical Level IT: CYBER SECURITY IT: NETWORKING IT: PROGRAMMING IT: USER SUPPORT Unit 1 Fundamental principles of computing Y/507/6424 | LATEST UPDATE

Tentamen (uitwerkingen) ·

Financial Accounting Ivy Software FINAL - Financial Accounting Pre Assessment - Financial accounting -Mba prepworks Combined Sets Complete Solution For Easy Pass!!

Tentamen (uitwerkingen) ·

HESI PN Pediatric Exam (18 Latest Versions, 2021) / PN HESI Pediatric Exam / Pediatric HESI PN Exam |Verified and 100% Correct Q & A, Complete Document for HESI Exam|

Tentamen (uitwerkingen) ·

Test Bank for Essentials Of Statistics For The Behavioral Sciences 10th Edition Frederick J Gravetter, Larry B. Wallnau, Lori Ann B. Forzano, James E. Witnauer