100% tevredenheidsgarantie Direct beschikbaar na je betaling Lees online óf als PDF Geen vaste maandelijkse kosten
logo-home
Eerder door jou gezocht
Eerder door jou gezocht
logo
Solution Manual for Principles of Corporate Finance 14th Edition by Richard Brealey, Stewart Myers, Franklin Allen and Alex Edmans, All Chapters 1-34 || Latest Edition €16,18
In winkelwagen
Snel navigeren naar
Voorbeeld
  2.  
  3. Principles Of Corporate Finance 14th Edition
  4.  
  5. Principles Of Corporate Finance 14th Edition

Tentamen (uitwerkingen)

Solution Manual for Principles of Corporate Finance 14th Edition by Richard Brealey, Stewart Myers, Franklin Allen and Alex Edmans, All Chapters 1-34 || Latest Edition

 1 keer verkocht
  • Vak
  • Principles Of Corporate Finance 14th Edition
  • Instelling
  • Principles Of Corporate Finance 14th Edition
  • Boek
  • Principles of Corporate Finance

Solution Manual for Principles of Corporate Finance 14th Edition by Richard Brealey, Stewart Myers, Franklin Allen and Alex Edmans, All Chapters 1-34 || Latest Edition

Voorbeeld 4 van de 454  pagina's

Document informatie

  • 15 oktober 2024
  • 454
  • 2024/2025
  • Tentamen (uitwerkingen)
  • Vragen en antwoorden

Onderwerpen

  • solution manual for principles of corporate financ
  • 14th edition by richard brealey
  • stewart myers franklin allen and alex edmans
  • all chapters 1 34 latest edition

Gekoppeld boek

book image

Titel boek:

Auteur(s):

  • Uitgave:
  • ISBN:
  • Druk:

Meer samenvattingen voor studieboek

  • Foundations of Finance Summary of Book "Principles of Corporate Finance"
  • ECB1IFA notes from both LLH (first 4 chapters) and BMA ( 1-7 and 9)
Alles voor dit studieboek (2)

Geschreven voor

  • Principles Of Corporate Finance 14th Edition
  • Principles Of Corporate Finance 14th Edition

Verkoper

avatar-seller
kylaexcell

Ontvangen beoordelingen

Voorbeeld van de inhoud

SOLUTION MANUAL FOR

Principles of Corporate Finance
AUTHOR: Richard Brealey, Stewart Myers, Franklin Allen and Alex Edmans

14TH EDITION




© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.

, 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




© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.

,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,
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.

, 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




© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.

Dit zijn jouw voordelen als je samenvattingen koopt bij Stuvia:

Bewezen kwaliteit door reviews

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

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

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 kylaexcell. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor €16,18. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

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

Afgelopen 30 dagen zijn er 68175 samenvattingen verkocht

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

Start met verkopen

Laatst bekeken door jou

Tentamen (uitwerkingen) ·

(0)

HCR 240 Exam 1 Questions with Complete Solution2.

€16,18  1x  verkocht
  • (0)
In winkelwagen
Toegevoegd