Principles of Corporate Finance_ 12th Edition

232 Part Two Risk bre44380_ch09_221-248.indd 232 10/09/15 09:59 PM investment) included in PV(fixed costs). The commitment to in ...

Chapter 9 Risk and the Cost of Capital 233 bre44380_ch09_221-248.indd 233 10/09/15 09:59 PM But now you discover that the compan ...

234 Part Two Risk bre44380_ch09_221-248.indd 234 10/09/15 09:59 PM Step 1, then, is to do your best to make unbiased forecasts o ...

Chapter 9 Risk and the Cost of Capital 235 bre44380_ch09_221-248.indd 235 10/09/15 09:59 PM Line 5 shows the correct adjustment ...

236 Part Two Risk bre44380_ch09_221-248.indd 236 10/09/15 09:59 PM bre44380_ch09_221-248.indd 237 10/09/15 09:59 PM Valuation by ...

Chapter 9 Risk and the Cost of Capital 237 bre44380_ch09_221-248.indd 236 10/09/15 09:59 PM bre44380_ch09_221-248.indd 237 10/09 ...

238 Part Two Risk bre44380_ch09_221-248.indd 238 10/09/15 09:59 PM bre44380_ch09_221-248.indd 239 10/09/15 09:59 PM In year 1 pr ...

Chapter 9 Risk and the Cost of Capital 239 bre44380_ch09_221-248.indd 238 10/09/15 09:59 PM bre44380_ch09_221-248.indd 239 10/09 ...

240 bre44380_ch09_221-248.indd 240 10/09/15 09:59 PM ● ● ● ● ● USEFUL SPREADSHEET FUNCTIONS ❱ Spreadsheets such as Excel have so ...

Chapter 9 Risk and the Cost of Capital 241 bre44380_ch09_221-248.indd 241 10/09/15 09:59 PM to do this.) Check that you get the ...

242 Part Two Risk bre44380_ch09_221-248.indd 242 10/09/15 09:59 PM bre44380_ch09_221-248.indd 243 10/09/15 09:59 PM But exceptio ...

Chapter 9 Risk and the Cost of Capital 243 bre44380_ch09_221-248.indd 242 10/09/15 09:59 PM bre44380_ch09_221-248.indd 243 10/09 ...

244 Part Two Risk bre44380_ch09_221-248.indd 244 10/09/15 09:59 PM bre44380_ch09_221-248.indd 245 10/09/15 09:59 PM Measuring r ...

Chapter 9 Risk and the Cost of Capital 245 bre44380_ch09_221-248.indd 244 10/09/15 09:59 PM bre44380_ch09_221-248.indd 245 10/09 ...

246 Part Two Risk bre44380_ch09_221-248.indd 246 10/09/15 09:59 PM CHALLENGE Beta of costs Suppose you are valuing a future str ...

Chapter 9 Risk and the Cost of Capital 247 bre44380_ch09_221-248.indd 247 10/09/15 09:59 PM MINI-CASE ●^ ●^ ●^ ●^ ● The Jones Fa ...

248 Part Two Risk bre44380_ch09_221-248.indd 248 10/09/15 09:59 PM John: That’s $2.7 million next year, assuming that we find an ...

● ● ● 249 bre44380_ch10_249-278.indd 249 09/30/15 12:45 PM Part 3 Best Practices in Capital Budgeting H aving read our earlier c ...

250 Part Three Best Practices in Capital Budgeting bre44380_ch10_249-278.indd 250 09/30/15 12:45 PM Senior management needs some ...

Chapter 10 Project Analysis 251 bre44380_ch10_249-278.indd 251 09/30/15 12:45 PM happen 20% of the time.^1 Therefore project ris ...