... ϭϪ$4,350PV ϭ110,0001 .15 ϭ $95,650 Expected return ϭexpected profitinvestmentϭ110 Ϫ 95.6595.65ϭ .15, or 15% Brealey−Meyers: Principles of Corporate Finance, Seventh Edition I. Value 2. ... 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, Seventh Edition I. Value 2. Present ... Cost of Capital© The McGraw−Hill Companies, 2003 CHAPTER TWO12P R E S E N T V A L U E A N D T H EOPPORTUNITYCOST OF CAPITAL Brealey−Meyers: Principles of Corporate Finance, Seventh Edition I....