Capital Investment and Valuation

by Brealey, Richard A.

• ISBN13: 9780071383776
• ISBN10: 0071383778
• Edition: 1st
• Format: Hardcover
• Copyright: 2002-10-25
• Publisher: McGraw-Hill

Summary

McGraw Hill's Brealey & Myers on Corporate Finance series presents the key corporate finance topics from the seminal college textbook, Principles of Corporate Finance. The new series builds on the success of the Brealey & Myers name. Each title will retain the key corporate finance themes and techniques that are so indispensable to today's busy professional, placing them in a shorter and more accessible package.

Author Biography

Richard A. Brealey, Ph.D. and Stewart C. Myers, Ph.D. are coauthors of the perpetually best-selling textbook Principles of Corporate Finance and two of the most respected and accomplished names in education and corporate finance. Dr. Brealey has taught at the London Business School for more than thirty years and is former president of the European Finance Association. Dr. Myers is the Gordon Y. Billard Professor of Finance at MIT's Sloan School of Management and is past president of the American Finance Association.

Table of Contents

Preface	vii
Acknowledgments	ix
PART ONE VALUE	1	(128)
Finance and the Financial Manager	3	(12)
Present Value and the Opportunity Cost of Capital	15	(16)
How to Calculate Present Values	31	(20)
The Value of Common Stocks	51	(30)
Why Net Present Value Leads to Better Investment Decisions than Other Criteria	81	(22)
Making Investment Decisions with the Net Present Value Rule	103	(26)
PART TWO RISK	129	(92)
Introduction to Risk, Return, and the Opportunity Cost of Capital	131	(28)
Risk and Return	159	(26)
Capital Budgeting and Risk	185	(36)
PART THREE PRACTICAL PROBLEMS IN CAPITAL BUDGETING	221	(86)
A Project is not a Black Box	223	(32)
Where Positive Net Present Values Come From	255	(24)
Making Sure Managers Maximize NPV	279	(28)
PART FOUR FINANCING DECISIONS AND PROJECT VALUE	307	(88)
An Overview of Corporate Financing	309	(16)
Does Debt Add Value?	325	(38)
Financing and Valuation	363	(32)
PART FIVE OPTIONS	395	(56)
Spotting and Valuing Options	397	(32)
Real Options	429	(22)
PART SIX MERGERS, CORPORATE CONTROL, AND GOVERNANCE	451	(60)
Mergers	453	(32)
Control, Governance, and Financial Architecture	485	(26)
PART SEVEN CONCLUSIONS	511	(38)
Conclusion: What We Do and Do not Know about Capital Investment and Valuation	513	(36)
Index	549