Richard A. Brealey - 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

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FinGame Online 5.0

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Case Studies in Finance: Managing for Corporate Value Creation

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Analysis for Financial Management

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Corporate Finance

Second European Edition

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Fundamentals of Corporate Finance

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Investments

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Personal Finance

Tenth Edition

Walker and Walker

Personal Finance: Building Your Future

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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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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.

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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.

To Our Parents

About the Authors

Richard A. Brealey

Professor of Finance at the London Business School. He is the former president of the European Finance Association and a former director of the American Finance Association. He is a fellow of the British Academy and has served as a special adviser to the Governor of the Bank of England and director of a number of financial institutions. Other books written by Professor Brealey include Introduction to Risk and Return from Common Stocks.