Corporate Finance, Module 13, “Corporate Financing”

Readings for the Fourteenth Edition (2022) of the Brealey, Myers, Allen, and Edmans text

(The attached PDF file has better formatting.)

The sections in this posting are for the fourteenth edition of the Brealey, Myers, Allen, and Edmans text. You may also use the seventh through thirteenth editions; final exam problems can be answered from any edition.

{The Brealey, Myers, Allen, and Edmans textbook is excellent. We say to read certain sections and to skip others. This does not mean that certain sections are better; it means that the homework assignments and exam problems are based on the sections that you must read for this course. Some of the skipped sections are fascinating, but they are not tested.}

Read Section 14.1 Venture capital; focus on the general themes; the historical facts are not tested on the final exam and are not needed for the homework assignments.

Read (or skim) Section 14.2 The initial public offering. The information is useful for understanding finance, but it is not directly tested on the final exam.

Read Section 14.3 Security sales by public companies. You will be tested on “rights issues” and on investor responses to equity issues.

Skip Section 14.4 Private placements.

End of chapter problems 1, 2, 3, 4, 7, 8 are good reviews of the basic terms. Review end of chapter problems 22, 23, 24, 25.

Illustrative test questions, problems, and homework assignments are shown separately on the discussion forum.