Principles of Corporate Finance

Richard Brealey 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 book's sister text, Principles of Corporate Finance. Stewart Myers Stewart C. Myers is the Gordon Y Billard Professor of Finance at MIT's 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 book's sister text, Principles of Corporate Finance. Franklin Allen Franklin Allen is the Nippon Life Professor of Finance at the Wharton School of the University of Pennsylvania.

Part One: Value
Chapter: 1. Introduction to Corporate Finance
Chapter: 2. How to Calculate Present Values
Chapter: 3. Valuing Bonds
Chapter: 4. The Value of Common Stocks
Chapter: 5. Net Present Value and Other Investment Criteria
Chapter: 6. Making Investment Decisions with the Net Present Value Rule

Part Two: Risk
Chapter: 7. Introduction to Risk and Return
Chapter: 8. Portfolio Theory and the Capital Asset Pricing Model
Chapter: 9. Risk and the Cost of Capital

Part Three: Best Practices in Capital Budgeting
Chapter: 10. Project Analysis
Chapter: 11. Investment, Strategy, and Economic Rents
Chapter: 12. Agency Problems, Compensation, and Performance Measurement

Part Four: Financing Decisions and Market Efficiency
Chapter: 13. Efficient Markets and Behavioral Finance
Chapter: 14. An Overview of Corporate Financing
Chapter: 15. How Corporations Issue Securities

Part Five: Payout Policy and Capital Structure
Chapter: 16. Payout Policy
Chapter: 17. Does Debt Policy Matter?
Chapter: 18. How Much Should a Corporation Borrow?
Chapter: 19. Financing and Valuation

Part Six: Options
Chapter: 20. Understanding Options
Chapter: 21. Valuing Options
Chapter: 22. Real Options

Part Seven: Debt Financing
Chapter: 23. Credit Risk and the Value of Corporate Debt
Chapter: 24. The Many Different Kinds of Debt
Chapter: 25. Leasing

Part Eight: Risk Management
Chapter: 26. Managing Risk
Chapter: 27. Managing International Risks

Part Nine: Financial Planning and Working Capital Management
Chapter: 28. Financial Analysis
Chapter: 29. Financial Planning
Chapter: 30. Working Capital Management

Part Ten: Mergers, Corporate Control, and Governance
Chapter: 31. Mergers
Chapter: 32. Corporate Restructuring
Chapter: 33. Governance and Corporate Control Around the World

Part Eleven: Conclusion
Chapter: 34. Conclusion: What We Do and Do Not Know About Finance