Principles of Corporate Finance – Richard A. Brealey, Stewart C. Myers – 7th Edition


This is the worldwide leading text on the theory and practice of corporate finance. Throughout the book the authors show how managers use financial theory to solve practical problems and as a way of learning how to respond to change by showing not just how, but why, companies and management act as they do.

The text is comprehensive, authoritative and modern and yet the material is presented at a common sense level. The discussions and illustrations are unique due to the depth of detail blended with a distinct sense of humour for which the book is well known and highly regarded. This text is a valued reference for thousands of practising financial managers.

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  • Part I. Value
    1. Finance and the Financial Manager
    2. Present Value and the Opportunity Cost of Capital
    3. How to Calculate Present Values
    4. The Value of Common Stocks
    5. Why Net Present Value Leads to Better Investment
    6. Making Investment Decisions with the Net Present Value Rule

    Part II. Risk
    7. Introduction to Risk, Return, and the Opportunity Cost of Capital
    8. Risk and Return
    9. Capital Budgeting and Risk

    Part III. Practical Problems in Capital Budgeting
    10. A Project is Not a Black Box
    11. Where Positive Net Present Values Come From
    12. Making Sure Managers Maximize NPV

    Part IV. Financing Decisions and Market Efficiency
    13. Corporate Financing and the Six Lessons of Market Efficiency
    14. An Overview of Corporate Financing
    15. How Corporations Issue Securities

    Part V. Dividend Policy and Capital Structure
    16. The Dividend Controversy
    17. Does Debt Policy Matter?
    18. How Much Should a Firm Borrow?
    19. Financing and Valuation

    Part VI. Options
    20. Understanding Options
    21. Valuing Options
    22. Real Options
    23. Warrants and Convertibles

    Part VII. Debt Financing
    24. Valuing Debt
    25. The Many Different Kinds of Debt
    26. Leasing

    Part VIII. Risk Management
    27. Managing Risk
    28. Managing International Risks

    Part IX. Financial Planning and Short-Term Financial Management
    29. Financial Analysis and Planning
    30. Short-Term Financial Planning
    31. Cash Management
    32. Credit Management

    Part X. Mergers, Corporate Control, and Governance
    33. Mergers
    34. Control, Governance, and Financial Architecture

    Part XI. Conclusions
    35. Conclusion: What We Do and Do Not Know About Finance
  • Citation

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