NA - Principles of Corporate Finance

Principles of
Corporate Finance

THE MCGRAW-HILL/IRWIN SERIES IN FINANCE, INSURANCE, AND REAL ESTATE

Stephen A. Ross, Franco Modigliani Professor of Finance and Economics, Sloan School of Management, Massachusetts Institute of Technology, Consulting Editor

Financial Management

Block, Hirt, and Danielsen

Foundations of Financial Management

Fourteenth Edition

Brealey, Myers, and Allen

Principles of Corporate Finance

Eleventh Global Edition

Brealey, Myers, and Allen

Principles of Corporate Finance, Concise

Second Edition

Brealey, Myers, and Marcus

Fundamentals of Corporate Finance

Seventh Global Edition

Brooks

FinGame Online 5.0

Bruner

Case Studies in Finance: Managing for Corporate Value Creation

Seventh Edition

Cornett, Adair, and Nofsinger

Finance: Applications and Theory

Second Edition

Cornett, Adair, and Nofsinger

M: Finance

Second Edition

DeMello

Cases in Finance

Second Edition

Grinblatt (editor)

Stephen A. Ross, Mentor: Influence through Generations

Higgins

Analysis for Financial Management

Tenth Edition

Hillier, Grinblatt, and Titman

Financial Markets and Corporate Strategy

Second European Edition

Hillier, Ross, Westerfield, and Jaffe

Corporate Finance

Second European Edition

Hillier, Ross, Westerfield, and Jordan

Fundamentals of Corporate Finance

First European Edition

Kellison

Theory of Interest

Third Edition

Ross, Westerfield, Jaffe, and Jordan

Corporate Finance: Core Principles and Applications

Third Edition

Ross, Westerfield, and Jordan

Essentials of Corporate Finance

Eighth Edition

Shefrin

Behavioral Corporate Finance: Decisions that Create Value

First Edition

White

Financial Analysis with an Electronic Calculator

Sixth Edition

Investments

Bodie, Kane, and Marcus

Essentials of Investments

Ninth Global Edition

Bodie, Kane, and Marcus

Investments

Ninth Global Edition

Hirt and Block

Fundamentals of Investment Management

Tenth Edition

Jordan and Miller

Fundamentals of Investments: Valuation and Management

Sixth Edition

Stewart, Piros, and Heisler

Running Money: Professional Portfolio Management

First Edition

Sundaram and Das

Derivatives: Principles and Practice

First Edition

Financial Institutions and Markets

Rose and Hudgins

Bank Management and Financial Services

Ninth Edition

Rose and Marquis

Financial Institutions and Markets

Eleventh Edition

Saunders and Cornett

Financial Institutions Management: A Risk Management Approach

Seventh Edition

Saunders and Cornett

Financial Markets and Institutions

Fifth Edition

International Finance

Eun and Resnick

International Financial Management

Sixth Edition

Real Estate

Brueggeman and Fisher

Real Estate Finance and Investments

Fourteenth Edition

Ling and Archer

Real Estate Principles: A Value Approach

Fourth Edition

Financial Planning and Insurance

Allen, Melone, Rosenbloom, and Mahoney

Retirement Plans: 401(k)s, IRAs, and Other Deferred Compensation Approaches

Tenth Edition

Altfest

Personal Financial Planning

First Edition

Harrington and Niehaus

Risk Management and Insurance

Second Edition

Kapoor, Dlabay, and Hughes

Focus on Personal Finance: An Active Approach to Help You Develop Successful Financial Skills

Fourth Edition

Kapoor, Dlabay, and Hughes

Personal Finance

Tenth Edition

Walker and Walker

Personal Finance: Building Your Future

First Edition

Principles of
Corporate Finance

ELEVENTH GLOBAL EDITION

Richard A. Brealey

Professor of Finance

London Business School

Stewart C. Myers

Robert C. Merton (1970) Professor of Finance

Sloan School of Management

Massachusetts Institute of Technology

Franklin Allen

Nippon Life Professor of Finance

The Wharton School

University of Pennsylvania

Principles of Corporate Finance

Richard A Brealey, Stewart C Myers, Franklin Allen

ISBN-13 9780077151560

ISBN-10 0077151569

Published by McGraw-Hill Education

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British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Cataloguing in Publication Data

The Library of Congress data for this book has been applied for from the Library of Congress

Commissioning Editor: Tom Hill

Marketing Manager: Vanessa Boddington

Production Editor: James Bishop

Design of book: The images in the design of this book are based on elements of the architecture of Frank Lloyd Wright, specifically from the leaded glass windows seen in many of his houses. Wrights design was rooted in nature and based on simplicity and harmony. His windows use elemental geometry to abstract natural forms, complementing and framing the natural world outside. This concept of seeing the world through an elegantly structured framework ties in nicely to the idea of framing ones view of the world through the window of economics.

The typeface used for some of the elements was taken from the Arts and Crafts movement. The typeface, as well as the color palette, bring in the feeling of that movement in a way that complements the geometric elements of Wrights windows. The Economic Naturalist icon is visually set apart from the more geometric elements but is a representation of the inspirational force behind all of Wrights work.

Printed and bound in Spain by Grafo Industrias Gr Ficas

Published by McGraw-Hill Education (UK) Limited an imprint of McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright 2014 by McGraw-Hill Education (UK) Limited. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Fictitious names of companies, products, people, characters and/or data that may be used herein (in case studies or in examples) are not intended to represent any real individual, company, product or event.

ISBN-13 9780077151560

ISBN-10 0077151569

2014. Exclusive rights by The McGraw-Hill Companies, Inc. for manufacture and export. This book cannot be re-exported from the country to which it is sold by McGraw-Hill.

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