... Sachs, the last of the leading investment-bank part-
nerships, issued shares and became a public corporation in 1998.
Brealey−Meyers:
Principles of Corporate
Finance, Seventh Edition
I. Value ... overseas invest-
ments. We discuss international corporate finance at many different points in the
chapters that follow.
Brealey−Meyers:
Principles of Corporate
Finance, Sev...
... C. Howe, “A Life-Cycle Model of Pharmaceuti-
cal R&D,” MIT Program on the Pharmaceutical Industry, April 19 97.
Brealey−Meyers:
Principles of Corporate
Finance, Seventh Edition
III. Practical ... provision for expanding to
take advantage of good luck.
CHAPTER 10
A Project Is Not a Black Box 277
Brealey−Meyers:
Principles of Corporate
Finance, Seventh Edition...
... can buy the de-
sired number of shares. This is another example of the uniform-price auction described in Section 15.3.
Brealey−Meyers:
Principles of Corporate
Finance, Seventh Edition
V. Dividend ... Structure
Rate of Income Tax
15% 30% 47%
Operating income 100 100 100
Corporate tax (T
c
ϭ .30) 30 30 30
After-tax income 70 70 70
Grossed-up dividend 100 100 100
Income...
... in-
vestment plus interest of . 07 ϫ 373 ,832 ϭ $26,168. The total sum you receive is 373 ,832 ϩ 26,168 ϭ
$400,000. Note that 373 ,832 ϫ 1. 07 ϭ $400,000.
Brealey−Meyers:
Principles of Corporate
Finance, ... and Ethics: The Case of Salomon Broth-
ers,” Journal of Applied Corporate Finance 5 (Summer 1992), pp. 23–28.
Brealey−Meyers:
Principles of Corporate
Finance,...
... 0.
Year
12 345 67
1. Revenue 140 140 140 140 140 140 140
2. Operating costs 55 55 55 55 55 55 55
3. Depreciation* 57 57 57 57 57 57 57
4. Net income 28 28 28 28 28 28 28
5. Start -of- year
book value
†
400 ... satisfactory way of defining the true rate of re-
turn of a long-lived asset. The best available concept is the so-called discounted-
cash-flow (DCF) rate of return or...
... value of dollar relative to basket of currencies
Real GNP Change in forecasts of real GNP
Inflation Change in forecasts of inflation
Brealey−Meyers:
Principles of Corporate
Finance, Seventh Edition
II. ... risk-free interest rate
Size factor Return on small-firm stocks less return on large-firm stocks
Book-to-market factor Return on high book-to-market-ratio stocks less re...