Chapter 1: The CorporationSection 1.1:
The Four Types of Firms
Section 1.2:
Ownership Versus Control of Corporations
Section 1.3:
The Stock Market
Page 52:
Problems
Chapter 2: Introduction to Financial Statement AnalysisSection 2.1:
Firms’ Disclosure of Financial Information
Section 2.2:
The Balance Sheet
Section 2.3:
The Income Statement
Section 2.4:
The Statement of Cash Flows
Section 2.5:
Other Financial Statement Information
Section 2.6:
Financial Statement Analysis
Section 2.7:
Financial Reporting in Practice
Page 85:
Problems
Page 92:
Data Case
Chapter 3: Financial Decision Making and the Law of One PriceSection 3.1:
Valuing Decisions
Section 3.2:
Interest Rates and the Time Value of Money
Section 3.3:
Present Value and the NPV Decision Rule
Section 3.4:
Arbitrage and the Law of One Price
Section 3.5:
No-Arbitrage and Security Prices
Page 115:
Problems
Chapter 4: The Time Value of MoneySection 4.1:
The Timeline
Section 4.2:
The Three Rules of Time Travel
Section 4.3:
Valuing a Stream of Cash Flows
Section 4.4:
Calculating the Net Present Value
Section 4.5:
Perpetuities and Annuities
Section 4.6:
Using an Annuity Spreadsheet or Calculator
Section 4.7:
Non-Annual Cash Flows
Section 4.8:
Solving for the Cash Payments
Section 4.9:
The Internal Rate of Return
Page 166:
Problems
Page 172:
Data Case
Section 5.1:
Interest Rate Quotes and Adjustments
Section 5.2:
Application: Discount Rates and Loans
Section 5.3:
The Determinants of Interest Rates
Section 5.4:
Risk and Taxes
Section 5.5:
The Opportunity Cost of Capital
Page 195:
Problems
Page 200:
Data Case
Section 6.1:
Bond Cash Flows, Prices, and Yields
Section 6.2:
Dynamic Behavior of Bond Prices
Section 6.3:
The Yield Curve and Bond Arbitrage
Section 6.4:
Corporate Bonds
Section 6.5:
Sovereign Bonds
Page 231:
Problems
Page 236:
Data Case
Chapter 7: Investment Decision RulesSection 7.1:
NPV and Stand-Alone Projects
Section 7.2:
The Internal Rate of Return Rule
Section 7.3:
The Payback Rule
Section 7.4:
Choosing Between Projects
Section 7.5:
Project Selection with Resource Constraints
Page 263:
Problems
Page 269:
Data Case
Chapter 8: Fundamentals of Capital BudgetingSection 8.1:
Forecasting Earnings
Section 8.2:
Determining Free Cash Flow and NPV
Section 8.3:
Choosing Among Alternatives
Section 8.4:
Further Adjustments to Free Cash Flow
Section 8.5:
Analyzing the Project
Page 298:
Problems
Page 305:
Data Case
Section 9.1:
The Dividend-Discount Model
Section 9.2:
Applying the Dividend-Discount Model
Section 9.3:
Total Payout and Free Cash Flow Valuation Models
Section 9.4:
Valuation Based on Comparable Firms
Section 9.5:
Information, Competition, and Stock Prices
Page 341:
Problems
Page 346:
Data Case
Chapter 10: Capital Markets and the Pricing of RiskSection 10.1:
Risk and Return: Insights from 89 Years of Investor History
Section 10.2:
Common Measures of Risk and Return
Section 10.3:
Historical Returns of Stocks and Bonds
Section 10.4:
The Historical Trade-Off Between Risk and Return
Section 10.5:
Common Versus Independent Risk
Section 10.6:
Diversification in Stock Portfolios
Section 10.7:
Measuring Systematic Risk
Section 10.8:
Beta and the Cost of Capital
Page 382:
Problems
Page 387:
Data Case
Chapter 11: Optimal Portfolio Choice and the Capital Asset Pricing ModelSection 11.1:
The Expected Return of a Portfolio
Section 11.2:
The Volatility of a Two-Stock Portfolio
Section 11.3:
The Volatility of a Large Portfolio
Section 11.4:
Risk Versus Return: Choosing an Efficient Portfolio
Section 11.5:
Risk-Free Saving and Borrowing
Section 11.6:
The Efficient Portfolio and Required Returns
Section 11.7:
The Capital Asset Pricing Model
Section 11.8:
Determining the Risk Premium
Page 428:
Problems
Page 434:
Data Case
Chapter 12: Estimating the Cost of CapitalSection 12.1:
The Equity Cost of Capital
Section 12.2:
The Market Portfolio
Section 12.3:
Beta Estimation
Section 12.4:
The Debt Cost of Capital
Section 12.5:
A Project’s Cost of Capital
Section 12.6:
Project Risk Characteristics and Financing
Section 12.7:
Final Thoughts on Using the CAPM
Page 466:
Problems
Page 470:
Data Case
Chapter 13: Investor Behavior and Capital Market EfficiencySection 13.1:
Competition and Capital Markets
Section 13.2:
Information and Rational Expectations
Section 13.3:
The Behavior of Individual Investors
Section 13.4:
Systematic Trading Biases
Section 13.5:
The Efficiency of the Market Portfolio
Section 13.6:
Style-Based Techniques and the Market Efficiency Debate
Section 13.7:
Multifactor Models of Risk
Section 13.8:
Methods Used in Practice
Page 511:
Problems
Chapter 14: Capital Structure in a Perfect MarketSection 14.1:
Equity Versus Debt Financing
Section 14.2:
Modigliani-Miller I: Leverage, Arbitrage, and Firm Value
Section 14.3:
Modigliani-Miller II: Leverage, Risk, and the Cost of Capital
Section 14.4:
Capital Structure Fallacies
Section 14.5:
MM: Beyond the Propositions
Page 544:
Problems
Page 548:
Data Case
Chapter 15: Debt and TaxesSection 15.1:
The Interest Tax Deduction
Section 15.2:
Valuing the Interest Tax Shield
Section 15.3:
Recapitalizing to Capture the Tax Shield
Section 15.4:
Personal Taxes
Section 15.5:
Optimal Capital Structure with Taxes
Page 578:
Problems
Page 582:
Data Case
Chapter 16: Financial Distress, Managerial Incentives, and InformationSection 16.1:
Default and Bankruptcy in a Perfect Market
Section 16.2:
The Costs of Bankruptcy and Financial Distress
Section 16.3:
Financial Distress Costs and Firm Value
Section 16.4:
Optimal Capital Structure: The Trade-Off Theory
Section 16.5:
Exploiting Debt Holders: The Agency Costs of Leverage
Section 16.6:
Motivating Managers: The Agency Benefits of Leverage
Section 16.7:
Agency Costs and the Trade-Off Theory
Section 16.8:
Asymmetric Information and Capital Structure
Section 16.9:
Capital Structure: The Bottom Line
Page 620:
Problems
Section 17.1:
Distributions to Shareholders
Section 17.2:
Comparison of Dividends and Share Repurchases
Section 17.3:
The Tax Disadvantage of Dividends
Section 17.4:
Dividend Capture and Tax Clienteles
Section 17.5:
Payout Versus Retention of Cash
Section 17.6:
Signaling with Payout Policy
Section 17.7:
Stock Dividends, Splits, and Spin-Offs
Page 664:
Problems
Page 668:
Data Case
Chapter 18: Capital Budgeting and Valuation with LeverageSection 18.1:
Overview of Key Concepts
Section 18.2:
The Weighted Average Cost of Capital Method
Section 18.3:
The Adjusted Present Value Method
Section 18.4:
The Flow-to-Equity Method
Section 18.5:
Project-Based Costs of Capital
Section 18.6:
APV with Other Leverage Policies
Section 18.7:
Other Effects of Financing
Section 18.8:
Advanced Topics in Capital Budgeting
Page 709:
Problems
Page 715:
Data Case
Chapter 19: Valuation and Financial Modeling: A Case StudySection 19.1:
Valuation Using Comparables
Section 19.2:
The Business Plan
Section 19.3:
Building the Financial Model
Section 19.4:
Estimating the Cost of Capital
Section 19.5:
Valuing the Investment
Section 19.6:
Sensitivity Analysis
Page 751:
Problems
Chapter 20: Financial OptionsSection 20.1:
Option Basics
Section 20.2:
Option Payoffs at Expiration
Section 20.3:
Put-Call Parity
Section 20.4:
Factors Affecting Option Prices
Section 20.5:
Exercising Options Early
Section 20.6:
Options and Corporate Finance
Page 783:
Problems
Page 788:
Data Case
Chapter 21: Option ValuationSection 21.1:
The Binomial Option Pricing Model
Section 21.2:
The Black-Scholes Option Pricing Model
Section 21.3:
Risk-Neutral Probabilities
Section 21.4:
Risk and Return of an Option
Section 21.5:
Corporate Applications of Option Pricing
Page 820:
Problems
Section 22.1:
Real Versus Financial Options
Section 22.2:
Decision Tree Analysis
Section 22.3:
The Option to Delay: Investment as a Call Option
Section 22.4:
Growth and Abandonment Options
Section 22.5:
Investments with Different Lives
Section 22.6:
Optimally Staging Investments
Section 22.7:
Rules of Thumb
Page 853:
Problems
Chapter 23: Raising Equity CapitalSection 23.1:
Equity Financing for Private Companies
Section 23.2:
The Initial Public Offering
Section 23.3:
IPO Puzzles
Section 23.4:
The Seasoned Equity Offering
Page 892:
Problems
Page 895:
Data Case
Chapter 24: Debt FinancingSection 24.1:
Corporate Debt
Section 24.2:
Other Types of Debt
Section 24.3:
Bond Covenants
Section 24.4:
Repayment Provisions
Page 917:
Problems
Page 918:
Data Case
Section 25.1:
The Basics of Leasing
Section 25.2:
Accounting, Tax, and Legal Consequences of Leasing
Section 25.3:
The Leasing Decision
Section 25.4:
Reasons for Leasing
Page 945:
Problems
Chapter 26: Working Capital ManagementSection 26.1:
Overview of Working Capital
Section 26.2:
Trade Credit
Section 26.3:
Receivables Management
Section 26.4:
Payables Management
Section 26.5:
Inventory Management
Section 26.6:
Cash Management
Page 967:
Problems
Page 970:
Data Case
Chapter 27: Short-Term Financial PlanningSection 27.1:
Forecasting Short-Term Financing Needs
Section 27.2:
The Matching Principle
Section 27.3:
Short-Term Financing with Bank Loans
Section 27.4:
Short-Term Financing with Commercial Paper
Section 27.5:
Short-Term Financing with Secured Financing
Page 991:
Problems
Chapter 28: Mergers and AcquisitionsSection 28.1:
Background and Historical Trends
Section 28.2:
Market Reaction to a Takeover
Section 28.3:
Reasons to Acquire
Section 28.4:
Valuation and the Takeover Process
Section 28.5:
Takeover Defenses
Section 28.6:
Who Gets the Value Added from a Takeover?
Page 1022:
Problems
Chapter 29: Corporate GovernanceSection 29.1:
Corporate Governance and Agency Costs
Section 29.2:
Monitoring by the Board of Directors and Others
Section 29.3:
Compensation Policies
Section 29.4:
Managing Agency Conflict
Section 29.5:
Regulation
Section 29.6:
Corporate Governance Around the World
Page 1047:
Problems
Chapter 30: Risk ManagementSection 30.1:
Insurance
Section 30.2:
Commodity Price Risk
Section 30.3:
Exchange Rate Risk
Section 30.4:
Interest Rate Risk
Page 1085:
Problems
Chapter 31: International Corporate FinanceSection 31.1:
Internationally Integrated Capital Markets
Section 31.2:
Valuation of Foreign Currency Cash Flows
Section 31.3:
Valuation and International Taxation
Section 31.4:
Internationally Segmented Capital Markets
Section 31.5:
Capital Budgeting with Exchange Risk
Page 1107:
Problems
Page 1109:
Data Case
Chapter Appendix 3: The Price of RiskPage 124:
Concept Check
Page 126:
Concept Check
Page 126:
Problems
Chapter Appendix 4: Solving for the Number of Periods
Chapter Appendix 6: Forward Interest Rates
Chapter Appendix 12: Practical Considerations When Forecasting BetaAt Quizlet, we’re giving you the tools you need to take on any subject without having to carry around solutions manuals or printing out PDFs! Now, with expert-verified solutions from Corporate Finance 4th Edition, you’ll learn how to solve your toughest homework problems. Our resource for Corporate Finance includes answers to chapter exercises, as well as detailed information to walk you through the process step by step. With Expert Solutions for thousands of practice problems, you can take the guesswork out of studying and move forward with confidence.
