Changes from 9th to 10th Edition of Brealey/Myers/Allen. In general: -Old
chapters 2 and 3 are merged and old chapters 4-27 correspond to new chapters
3-26.
Changes from 9th to 10th Edition of Brealey/Myers/Allen In general: -Old chapters 2 and 3 are merged and old chapters 4-27 correspond to new chapters 3-26 -new: examples and discussions of the financial crises throughout the book -new: useful spreadsheet functions are shown -see page 7 and 8 in 10th edition
Chapter 1 -different title:
in 10th Edition: “Goals and Governance of the Firm“ instead of “Finance and the Financial Manager“ -missing in 9th: 1.1: “Investment Decisions” & “Financing Decisions” (just little more information than in 9th Edition) 1.2: “Investment Trade-Off” (FiWi 2) 1.4: “Agency Problems (Weber-chapters) -change: 1.3 new = 2.3 old Chapter 2 -10th Edition combines the two old chapters 2 and 3 in Chapter 2 -change: 2.1 new = 2.1 + 3.1 old 2.2 new = 3.2 old 2.3 new = 3.3 old 2.4 new = 3.4 old -important: “Current vs. Future Consumption” is missing in 10th Edition (Intertemporal Utility Maximization) Chapter 3 -change:
3.3 new “Spot Rates, Bond Prices and the Law of One Price” & “Why the Discount Factor Declines as Futurity Increases and a Digression on Money Machines” = 3.1 old “Why the Discount Factor Declines as Futurity Increases…” th -missing in 9 : 3.5 “What Determines the Real Rate of Interest” 3.6 (FiWi 2) Chapter 4 -missing in 9th: 4.2 “Valuation by Comparables” (introduction to book-to-market ratio and price-earnings ratio) Chapter 5 -old chapter 6, no important changes Chapter 6 -missing in 9th: 6.3 Investment Timing Chapter 7 -old chapter 8, no important changes Chapter 8 -different title:
in 10th Edition: “Portfolio Theory and the CAPM“ instead of “Risk and Return“-missing in 10th: 9.4 “Consumption Beta vs. Market Betas”
Chapter 9 -different title: in 10th Edition: “Risk and the Cost of Capital” instead of “Capital Budgeting and Risk” -change: 9.3 “Analyzing Project Risk”, but only in form -missing in 9th: 9.2. “Union Pacific’s After-Tax-Weighted-Average Cost of Capital”, “Union Pacific’s Asset Beta” -missing in 10th: 10.5 “Discount Rates for International Projects” (only short summary in 9.3) Chapter 10 -old chapter 11, no important changes Chapter 11 -old chapter 12, no important changes Chapter 12 -old chapter 13, no important changes Chapter 13 -missing in 9th: 13.3 “Bubbles and Market Efficiency” 13.4 “Incentive Problems and the Subprime Crisis”
