Principles of Corporate Finance Global Edition by Brealey, Myers and Allen

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To continue uninterrupted business services on a regular basis it is required to provide enough funds to the related parties. Managing working capital is one of the tough jobs of corporate managers as it required good planning of cash inflow and outflow. It can be managed from the long-term financing sources or short term sources. Internal Control Principle

There have been several changes to chapter structure as well as expanded discussion of issues that have grown in importance since the previous edition including behavioural finance, and financial innovation driven by AI, big data and cloud computing. It has also grown to take a more international focus, to bring in more information and perspectives on major developing economies such as China and India, and looking at how financing and governance systems differ around the world. Retaining the right amount of cash or cash equivalent on hand is not an easy job but corporate finance provides a guideline on how you can ensure the right amount of liquid fund to continue uninterrupted services. Another thing is while maintaining the required amount of funds as a liquid asset it must be needed to consider profitability also. As the surplus amount holding on hand will not generate any revenue so proper planning is necessary to optimize profitability and liquidity. Principles of Working Capital Management Stewart C. Myers - Emeritus Professor of Financial Economics at MIT’s Sloan School of Management. He is past president of the American Finance Association, a research associate at the National Bureau of Economic Research, a principal of the Brattle Group Inc., and a retired director of Entergy Corporation. His research is primarily concerned with the valuation of real and financial assets, corporate financial policy, and financial aspects of government regulation of business. He is the author of influential research papers on many topics, including adjusted present value, rate of return regulation, pricing and capital allocation in insurance, real options, and moral hazard and information issues in capital structure decisions. I'm currently working on my MBA. I graduated with a 4.0 and a 3.79 for my two undergraduate degrees; I work hard for my grades. In all my currently nine years of higher education I've never come across a more poorly written textbook. There is a lot of math involved, but formulas are rarely clearly given, and algebraic rearrangements of the formulas are interspersed without comment or warning. Examples are wordy and difficult to follow. The index misses many important concepts and the glossary refuses to include any sort of formula to assist with calculations. Corporate governance: separation of ownership and control; management incentives; management shareholdings and firm value; corporate governance.

Aims and Objectives

Here, one of the world’s leading economists offers a lucid, unified, and comprehensive introduction to modern corporate finance theory. Jean Tirole builds his landmark book around a single model, using an incentive or contract theory approach. Filling a major gap in the field, The Theory of Corporate Finance is an indispensable resource for graduate and advanced undergraduate students as well as researchers of corporate finance, industrial organization, political economy, development, and macroeconomics. Brealey, Principles of Corporate Finance, 13e, describes the theory and practice of corporate finance. We hardly need to explain why financial managers have to master the practical aspects of their job, but we should spell out why down-to-earth managers need to bother with theory. Throughout this book, we show how managers use financial theory to solve practical problems. Much of this book is concerned with understanding what financial managers do and why. But we also say what financial managers should do to increase company value. Dedicated Chapter on What We Do Know and What We Do Not Know about Finance: Discussion on seven major ideas and the ten unsolved problems of finance

Risk management: understand why and how companies manage risk; cost of hedging; covered and uncovered interest rate parity. Jean Tirole, one of the preeminent economists of his generation, has put together the first integrated treatise of modern corporate finance theory. He succeeds in unifying the dispersed theories on financial and ownership structure, building on his excellence in information economics and contract theory. The book should be required reading for any Ph.D. course in corporate finance."—Arnoud W. A. Boot, University of Amsterdam and Centre for Economic Policy Research Real options: understand what real options are and why they are important in project valuation; understand and calculate the source of option value; three types of real options: options to abandon/expand/wait. Understand the mathematics of portfolios and how risk affects the value of the asset in equilibrium under the fundaments asset pricing paradigms (CAPM and APT)

Using a single elementary model Tirole brings out with refreshing ease an unsuspected unity and simplicity in a field that might otherwise be perceived as dishearteningly fragmented and complex. This masterful book will be a formidable teaching tool at the graduate level and an essential reference for research in corporate finance."—Marco Pagano, Professor of Economics, University of Naples Federico II McGraw Hill also has online assignments that correlate with the text. Or they are supposed to. The questions jump around from chapter to chapter (60% of questions from chapter 1's assignment can't be solved without having read chapter 2, for example). The questions that do correlate only do so tenuously; the book teaches you that 1 + 1 = 2, but the assignment questions ask 3x * (28 There is a direct relationship between risk and return. The expectation of return will be higher when there is a high risk associated with the investment and vice versa. So before investment, it is required to ensure a balance between risk and return. So that company will do better in the long run. The target is to maximization of return by taking the optimal amount of risk. Profitability & Liquidity Optimization Principle understand and explain different capital structure theories, including information asymmetry and agency conflict Financing is one of the crucial tasks of a corporate finance manager. A better financing decision will lead you to low-cost financing which optimizes funds flow. This principle guides a manager to evaluate all the available alternatives to ensure the minimization of the cost of capital with an optimal risk. Investment Principle