Principles Of Corporate Finance

Brealey−Meyers: Principles of Corporate Finance, Seventh Edition Front Matter © The McGraw−Hill Companies, 2003 Preface PREFACE This book describes the theory and practice of corpo- Once understood, good theory is common sense. rate finance. We hardly need to explain why financial Therefore we have tried to present it at a common- managers should master the practical aspects of their sense level, and we have avoided proofs and heavy job, but we should spell out why down-to-earth, red- mathematics. There are no ironclad prerequisites for blooded managers need to bother with theory. reading this book except algebra and the English language. An elementary knowledge of accounting, sta- Managers learn from experience how to cope tistics, and microeconomics is helpful, however. with routine problems. But the best managers are also able to respond to change. To do this you need more than time-honored rules of thumb; you must CHANGES IN THE SEVENTH EDITION understand why companies and financial markets This book is written for students of financial man- behave the way they do. In other words, you need a agement. For many readers, it is their first look at the theory of finance. world of finance. Therefore in each edition we strive Does that sound intimidating? It shouldn’t. to make the book simpler, clearer, and more fun to Good theory helps you grasp what is going on in read. But the book is also used as a reference and the world around you. It helps you to ask the right guide by practicing managers around the world. questions when times change and new problems Therefore we also strive to make each new edition must be ana