Product Description

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.

Product Details

• Amazon Sales Rank: #326444 in Books
• Published on: 2002-07-01
• Original language: English
• Binding: Paperback
• 1120 pages

From the Publisher
The Seventh Edition includes a greater emphasis on the Internet, with web addresses provided for real world applications of the related topics. The web addresses appear after 'Further Readings' in the end of chapter materials, and also appear within chapter footnotes. Some end of chapter problems will feature web applications, and the address is provided in a different color.
Substantially Revised content on Options in Part VI - coverage of options, especially real options, has been expanded and restructured. A non-technical introduction to real options appears in Chapter 10 (A Product is Not a Black Box); Chapter 20 (Understanding Options) describes how options work, and what determines their values. Chapter 21 (Valuing Options) covers option valuation methods. Chapter 22 (Real Options) covers real options in detail, with may additional examples to help students understand this concept thoroughly.
S&P Market Insight Problems are included in end of chapter questions. These problems require the use of the Educational Version of Market Insight, taking advantage of Standard & Poor's powerful and well-known Compustat database. These problems provide instructors with an easy, online way to incorporate current, real-world data into the classroom. Access to this rich online resource is FREE with every new copy of the book.
In response to instructor requests, even more global coverage is integrated throughout the chapters. For example, Chapter 3 includes examples of different countries' interest rates; Chapter 7 includes a discussion of how diversification acts internationally; Chapter 14 provides international comparisons and why debts vary. For convenience, a new Global Index has been created for faculty interested in finding global content and examples.
Every chapter has been reviewed and revised to make this text the clearest and most up to date text available. For example, Chapter 7 (Introduction to Risk, Return, and the Opportunity Cost of Capital) includes new evidence on the market risk premium; Chapter 12, Where Positive Net Present Values Come From, includes expanded coverage of EVA (Economic Value Added). Chapter 13 (Financing Decisions and Market Efficiency) includes updated information on the volatile 2000/2001 market activity, as well as more information on behavioral finance and its effects on market movement; Chapter 15 (How Corporations Issue Securities) includes coverage of changing issue methods, such as book building, and recent IPO controversies; Chapters 25 & 26 (The Many Different Kinds of Debt and Leasing) includes information on new security types, such as weather derivatives and bonds; Chapter 33 (Mergers) covers changes in merger accounting; Chapter 34 (Control, Governance, and Financial Architecture) details changes in corporate governance in Europe and Japan.
Chapter 14 (An Overview of Corporate Financing) is now a self-standing introduction to corporate financing, including sources of funds, major types of debt and equity securities, and markets and financial institutions.
Chapter 24 (Valuing Debt) has been streamlined and simplified. This material is especially important for practicing financial managers.
The chapters on working capital and short-term financial management have been rearranged; emphasis is on essential institutional information and the most important short-term financial decisions.
There is an additional minicase on capital budgeting in Chapter 5. All minicases have new specific questions that follow each case. Some of the minicases are Internet based, and require students to use the web to solve the problem. The minicases are a popular feature that help students apply theory to real-world situations.
This text remains one of the most authoritative and comprehensive presentations of financial theory and practice available. The authors continue to reinforce their underlying theme of presenting theory as a way of helping financial managers solve practical problems. Customers can trust Brealey and Myers to get it right'both theory and practical applications. This book is a valued reference for thousands of practicing financial managers, and is the leading text worldwide.
Controversies in the field of finance are thoroughly covered throughout the book. The authors lay out the various views on issues, and present their opinions. Users find these very interesting for lively classroom discussions.
Procedures for estimating the cost of capital are covered extensively and realistically.
The Discounted Cash Flow Model, Capital Asset Pricing Model, and the Arbitrage Pricing Model are thoroughly compared and contrasted.
Examples from a variety of industries, such as oil, pharmaceutical, gas and electric utilities are included
Student CD-ROM is Free with every new book sold. The CD includes PowerPoint presentations, video clips, Financial Analysis Spreadsheet Templates, and many useful weblinks.
Standard & Poor's Educational Version of Market Insight. McGraw-Hill/Irwin is proud to partner with Standard & Poor's to offer access to the Educational Version of Standard & Poor's Market Insight(c). This rich online resource provides six years of financial data for 100 top US companies. The password-protected Website is the perfect way to bring real data into today's classroom. Access to this site is free with every new copy of the textbook.Standard & Poor's Educational Version of Market Insight. McGraw-Hill/Irwin is proud to partner with Standard & Poor's to offer access to the Educational Version of Standard & Poor's Market Insight(c). This rich online resource provides six years of financial data for 100 top US companies. The password-protected Website is the perfect way to bring real data into today's classroom. Access to this site is free with every new copy of the textbook.PowerWeb for Corporate Finance.

Customer Reviews

A comprehensive guide to finance
As a management accountant with an MBA I can say that this is an excellent text for anyone looking to study finance. Clear and easy to follow the text covers all the finance basics and examines some of the more novel concepts in finance today. By spanning business appraisal, project and corporate financing as well as capital markets the text gives the reader a complete understanding of how finance makes its way from individual investors right through to the use of this investment capital by companies. The many up to date commentaries and illustrative examples means that its not even a dull read for anyone with an interest in business.

Classic Approach
This book is still the classic approach to corporate finance, and a must for MBA students and all students of corporate finance. It teaches the fundamentals.

The material is a bit dated, especially with respect to off-balance sheet financing, toxic convertibles, total return swaps, and other ways of financing that can fundamentally change a corporate balance sheet, and even cause a change of control. It also doesn't address the kind of off-balance sheet transactions Enron engaged in.

For more on off-balance sheet products, including off-shore vehicles, I recommend Tavakoli's "Credit Derivatives" 2nd Edition.

Why so many editions?
This book loses one star for the myriad of editions that confuses anyone - and all seem to be variations on a theme. It loses another star for being great if you want the whole story, but if you want to dip in to get another take on some point, it is the devil's own to use. That aside, anyone interested in financial management should have a copy of this book. It is the definitive text on the subject.