Solution Manual for Corporate Finance: A Focused Approach, 7th Edition, Michael C. Ehrhardt, Eugene F. Brigham

PART I: FUNDAMENTAL CONCEPTS OF CORPORATE FINANCE.

1. An Overview of Financial Management and the Financial Environment.

Web Extensions 1A: An Overview of Derivatives; 1B: A Closer Look at the Stock Markets

2. Financial Statements, Cash Flow, and Taxes.

Web Extensions 2A: The Federal Income Tax System for Individuals.

3. Analysis of Financial Statements.

PART II: FIXED INCOME SECURITIES.

4. Time Value of Money.

Web Extensions 4A: The Tabular Approach; 4B: Derivation of Annuity Formulas; 4C: Continuous Compounding.

5. Bonds, Bond Valuation, and Interest Rates.

Web Extensions 5A: A Closer Look at Zero Coupon Bonds; 5B: A Closer Look at TIPS: Treasury Inflation Protected Securities; 5C: A Closer Look at Bond Risk: Duration; 5D: The Pure Expectations Theory and Estimation of Forward Rates.

PART III: STOCKS AND OPTIONS.

6. Risk, Return, and the Capital Asset Pricing Model.

Web Extensions 6A: Continuous Probability Distributions; 6B: Estimating Beta with a Financial Calculator.

7. Stocks, Stock Valuation, and Stock Market Equilibrium.

Web Extensions 7A: Derivation of Valuation Equations.

8. Financial Options and Applications in Corporate Finance.

PART IV: PROJECTS AND THEIR VALUATION.

9. The Cost of Capital.

Web Extensions 9A: The Required Return Assuming Nonconstant Dividends and Stock Repurchases.

10. The Basics of Capital Budgeting: Evaluating Cash Flows.

Web Extensions 10A: The Accounting Rate of Return (ARR).

11. Cash Flow Estimation and Risk Analysis.

Web Extensions 11A: Certainty Equivalents and Risk-Adjusted Discount Rates.

PART V: CORPORATE VALUATION AND GOVERNANCE.

12. Financial Planning and Forecasting Financial Statements.

Web Extensions 12A: Advanced Techniques for Forecasting Financial Statements Accounts.

13. Corporate Valuation, Value-Based Management and Corporate Governance.

PART VI: CASH DISTRIBUTIONS AND CAPITAL STRUCTURE.

14. Distributions to Shareholders: Dividends and Repurchases.

15. Capital Structure Decisions.

Web Extensions 15A: Degree of Leverage.

PART VII: MANAGING GLOBAL OPERATIONS.

16. Working Capital Management.

Web Extensions 16A: Secured Short-Term Financing.

17. Multinational Financial Management.

APPENDIXES.

A. Solutions to Self-Test Problems.

B. Answers to End-of-Chapter Problems.

C. Selected Equations and Data.

D. Values of the Areas under the Standard Normal Distribution Function.

Glossary.

Name Index.

Subject Index.