Solutions Manual for
Corporate Finance: A Practical Approach
Second Edition
Michelle R. Clayman, CFA Martin S. Fridson, CFA George H. Troughton, CFA
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CONTENTS
PART I
Learning Outcomes, Summary Overview, and Problems 1
CHAPTER 1
Corporate Governance 3 Learning Outcomes3 Summary Overview3 Problems5
CHAPTER 2
Capital Budgeting 11 Learning Outcomes11 Summary Overview12 Problems15
CHAPTER 3
Cost of Capital 29 Learning Outcomes29 Summary Overview29 Problems31
CHAPTER 4
Measures of Leverage 39 Learning Outcomes39 Summary Overview39 Problems40
CHAPTER 5
Capital Structure 45 Learning Outcomes45 Summary Overview45 Problems46 v ftoc 13 January 2012; 10:11:55 2 / 4
CHAPTER 6
Dividends and Share Repurchases: Basics 51
Learning Outcomes51 Summary Overview51 Problems52
CHAPTER 7
Dividends and Share Repurchases: Analysis 57
Learning Outcomes57 Summary Overview57 Problems59
CHAPTER 8
Working Capital Management 63 Learning Outcomes63 Summary Overview63 Problems64
CHAPTER 9
Financial Statement Analysis 67 Learning Outcomes67 Summary Overview67 Problems68
CHAPTER 10
Mergers and Acquisitions 73 Learning Outcomes73 Summary Overview74 Problems75
PART II
Solutions 83
CHAPTER 1
Corporate Governance 85 Solutions85
CHAPTER 2
Capital Budgeting 87 Solutions87 viContents ftoc 13 January 2012; 10:11:55 3 / 4
CHAPTER 3
Cost of Capital 99 Solutions99
CHAPTER 4
Measures of Leverage 103 Solutions103
CHAPTER 5
Capital Structure 107 Solutions107
CHAPTER 6
Dividends and Share Repurchases: Basics 111
Solutions111
CHAPTER 7
Dividends and Share Repurchases: Analysis 113
Solutions113
CHAPTER 8
Working Capital Management 115 Solutions115
CHAPTER 9
Financial Statement Analysis 119 Solutions119
CHAPTER 10
Mergers and Acquisitions 125 Solutions125 About the CFA Program 131 Contentsvii ftoc 13 January 2012; 10:11:55
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