Principles of Corporate Finance: Global Edition, 11/e
Richard A. Brealey,
London Business School Stewart C. Myers,
Massachusetts Institute of Technology Franklin Allen,
University of Pennsylvania
ISBN: 0077151569 Copyright year: 2014
What's New
“Beyond the Page” Interactive Content and Applications. Additional resources and hands-on applications are just a click away. Students will learn more about key concepts as they go beyond the page with additional examples, applications, spreadsheet programs, and other opportunities to explore topics in more depth. This content is especially exciting in e-versions of the book, but it is also easily accessible via the Web using the QR codes and shortcut URLs provided. Examples of Beyond the Page features include:
A financial calculator application (Ch. 2)
A beta estimation application (Ch. 9)
A real IPO prospectus (Ch. 15)
The flow-to-equity method for valuing businesses (Ch. 19)
An application for viewing the most recent financial statements for different U.S. companies and calculating their financial ratios (Ch. 28)
Several chapters have been rewritten for better flow and added simplicity.
Chapter 1 is now a more focused introduction to corporate finance. It concentrates on the decisions that corporations need to make and the financial objectives that govern these decisions and introduces five basic themes that return again and again throughout the book.
Chapter 3, introducing bond valuation, has been rewritten and simplified, and the last section of the chapter now includes an introduction to default risk. The tribulations of the Eurozone and the default by the Greek government introduce a brief discussion on the risk of default for both corporate and sovereign borrowers.
Chapter 16 on payout policy has been substantially rewritten to review both how much companies should pay out and whether they should do so by means of a dividend payment or stock repurchase. This chapter also includes more detail on how to value a company when repurchases are important.
Chapter 24, which previously looked at the different kinds of long-term debt, now also looks at short-term debt such as bank loans as many of the issues about debt design such as the role of covenants apply to both short- and long-term debt
Every chapter has been reviewed and revised to reflect current research and findings, with significant updates including:
A longer discussion of the differences between cash flows and accounting profits is included in Chapter 6 to provide a clearer understanding of how to derive cash flow forecasts.
Chapter 14 includes an expanded discussion of financial institutions and markets, including descriptions of the main forms of institutions, their economic roles, and a review of what happens when they cease to function well via the crisis of 2007-2009.
2014 McGraw-Hill Education Europe