Advanced Corporate Finance I SS 2012 Problem Set 1 Valuing Cash Flows Problem Set 1 Valuing Cash Flows Exercise 1 (Ex. 11.2 - 11.6 GT): Assume that Marriott’s restaurant division has the following joint distribution with the market return: Market Scenario Bad Good Great .25 .50 .25 Probability Market Return (%) -15 5 25 YR 1. Cash Flow Forecast $40 million $50 million $60 million Assume also that the CAPM holds. 11.2 Compute the expected year 1 restaurant cash flow for Marriott. 11.3 Find
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Chapter One Basic Areas of Finance: 1. Corporate Finance = Business Finance 2. Investments a. Work with financial assets such as stocks and bonds. b. Value of financial assets‚ risk verses return and asset allocation. c. Job opportunities. 3. Financial Institutions a. Companies that specialize in financial matters. i. Banks – Credit unions‚ savings‚ and loans. ii. Insurance Companies iii. Brokerage Firms b. Job Opportunities. 4. International Finance a. An area of specialization within each of the
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U NIVERSITY OF L UXEMBOURG ‚ L UXEMBOURG S CHOOL OF F INANCE Corporate Finance Master in Economics and Finance 2nd Assignment - Stock valuation + Cost of capital Due on 10/3/2014 E XERCISE 1 Starr Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year‚ indefinitely. If investors require a 12 percent return on the stock‚ what is the current price? What will the price be in three years? In 15 years? E XERCISE
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A Study On Corporate Finance September 6‚ 2010 Report on Financial Analysis on ACC Submitted By Ankit Bhatia: 05 Pallavi Gupta: 26 Divya Sahijwani: 38 Sahil Vijay: 82 Surbhi Sharma: 75 Submitted to: Mr. Ashish Garg LBSIM New Delhi Lal Bahadur Shastri Institute of Management To September 6‚ 2010 Mr. Ashish Garg LBSIM From: Group 1 PGDM-F
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Lecture 1 （Chapter 1） Introduction to Corporate Finance McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies‚ Inc. All rights reserved. 会计循环 会计循环过程 原始凭证 记账凭证 记账 过账结算 试算平衡 报表编制 总账 分类账 明细账 基本原则：账证相符、账账相符、账表相符、账实相符 1-1 财务管理的基本框架 企业规模 理财环境 目标利润 筹资渠道 财务策略 财务预算 筹资方式 财务目标 短期投资 股利理论 总体分析 营运资金管理 股利政策 指标分析 成本控制 股利方式 综合分析 资金预测 资金筹集 资金投放 收益分配 财务分析 时间价值 资金成本 财务关系 风险分析 资金结构 实业投资 税务政策 分析方法 证券投资 发展规模 分析报告 财务关系 财务管理制度 1-2 财会管理的构架
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Corporate finance chapter 1 Concept questions: 1.Agency Problems Who owns a corporation? Describe the process whereby the owners control the firm’s management. What is the main reason that an agency relationship exists in the corporate form of organization? In this context‚ what kinds of problems can arise? 2.Not-for-Profit Firm Goals .Suppose you were the financial manager of a not-for-profit business (a not-for-profit hospital‚ perhaps). What kinds of goals do you think would be appropriate
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ADM 3350 M Winter 2010 CORPORATE FINANCE MIDTERM EXAMINATION – February 10th‚ 2010 Professor: Kaouthar LAJILI‚ PhD.‚ CGA Duration: 1 hour and 30 minutes Part I 15 Part II 35 TOTAL 50 NAME: __________________________________________ STUDENT #: ________________________ PART I: Multiple Choice Questions (15 points) Please circle the correct answer 1. In an EPS-EBI graphical relationship‚ the slope of
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Business Consultancy International BBCi 2009 WS 2009/10 Final Examination Principles of Corporate Finance I Dr. Kinga Niemczak 14.12.2010 Name: ___________________________ Student No.: ______________________ 1. a. Calculate the value of a 4.65% five-year €1‚000 bond‚ if you know that the bond is rated AAA and the typical YTM for such bonds is 6.25%. (6 points) b. How will the value of this bond change (in %) if yield increases
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THE PRINCIPLES OF CORPORATE FINANCE CHAPTER 1: The time value of money We are going to link the present and the future by using the notion of interest rate that could be called discount rate‚ required rate of return or cost of capital. Finance is all about cash flows but more precisely about the exact date of the realization of the cash flow. I) PRESENT VALUE Example 1: What is the value today of $110 to be received in one year? - suppose the interest rate ‚ r =10%
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Corporate Finance Essay Most corporate financing decisions in practice reduce to a choice between debt and equity. The finance manager wishing to fund a new project‚ but reluctant to cut dividends or to make a rights issue‚ which leads to the decision of borrowing options. The issue with regards to shareholder objectives being met by the management in making financing decisions has come to become a major issue of recent times. This relates to understanding the concept of the agency problem. It deals
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