Student Solutions Manual for Financial Theory and Corporate Policy, Volume 2
A recognized classic, "Financial Theory and Corporate Policy' is thoroughly updated in this third edition. The authors provide a concise, unified treatment of finance, combining theory, empirical evidence and applications. Recent major contributions in financial literature are discussed and all current literature is summarized. The book provides MBA and doctoral students with an excellent bridge to prevailing scholarship in finance.
amount assume Black-Scholes formula calculate call option capital market CAPM cash flows compute cost of capital cost of equity cov(x covariance decision depreciation discount rate dollars E(NOI E(Rj E(Rm earnings equal equation equilibrium exercise price expected return expected utility Figure financing firm's futures contracts income increase indifference curve interest rate investment investor lease lessor level of wealth leverage levered firm marginal market portfolio market value merged firm merger million minimum variance portfolio old plant opportunity set optimal action order stochastic dominance payment payoffs percent positive NPV present value problem put-call parity PVIF rate of return ratio required rate risk aversion risk-adjusted risk-free asset risk-free rate scrubber security market line sell shareholders shares SOLUTIONS TO TEXT solve stochastic dominance systematic risk tax shield test market TEXT PROBLEMS—CHAPTER tion utility function value of debt value of equity var(x WACC weighted average cost zero