2008‚ CITIC Group injected assets into CITIC Pacific through issuance of convertible bond and increased its equity interest in CITIC Pacific to approximately 57.56%. Rong Zhijian‚ former Chairman of the board of CITIC Pacific‚ resigned in April 2009. The 2008 foreign exchange losses controversy terminated the history of CITIC Pacific as an SOE operated by Rong’s family as individuals. During the past twenty years‚ Rong has operated CITIC Pacific to be an independent kingdom. However‚ for CITIC Group
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Case Synopsis A. The chairman of Citic Pacific‚ Larry Yung Chi-kin’s father Yiren Rong started the company in 1978. • Citic was started “to pioneer reform in the financial sector‚ lure foreign investment and technology to China and develop international business.” (Ko‚ 2009) • When Yung became involved with the company he began to acquire more companies. o Eventually had Citic Pacific listed as a red-chip company in the Hong Kong
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he real option approach to investment decision making The real option approach to investment decision making does not provide a superior alternative to traditional methods Capital investment decisions are among the most important strategic decisions a company can make. Twenty years ago‚ managers began to realise that the traditional capital spending decision techniques such as discounting cash flow (DCF) were based on estimated revenues and costs and hence not appropriate in an uncertain arena
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HS 130 Unit II Seminar Option II Kaplan University The heart is the organ that supplies blood and oxygen to all parts of the body and is connected with the circulatory system. It pumps blood throughout the blood vessel by contractions. The male’s heart weight between 9 and 11 ounces and the female’s heart weighs about 11 to 12 ounces (Bradley‚ 2013). A person’s blood pressure has major effects on their heart where high blood pressure is a major risk factor for a heart attack. When the heart
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Real Options in Theory and Practice Answers to Selected End-of-Chapter Exercises Graeme Guthrie This document lists the final answers to selected exercises. A full solutions manual (with answers and working for all exercises) is available for instructors who adopt the book as a textbook. Chapter 2 2.1. (a) $32 million. (b) $29 million. (c) $31 million. Chapter 3 3.1. (a) πu = 0.302‚ πd = 0.698‚ V = 9.2566. (b) A = −0.9434‚ B = 0.15‚ V = 9.2566. 3.3. V = 10.38. 3.5. βx = 1.0: K = 0.9519
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Laura Martin: Real Options and the Cable Industry Introduction Laura Martin‚ an equity research analyst for cable stocks‚ believes that the best way to value cable stocks is through creative methods such as real options and not through more traditional or typical valuation methods such as EBITDA multiples‚ ROIC analysis and DCF analysis. In 1999 she presented at the Credit Suisse First Boston Broadband conference‚ where she wanted to portray the message that real options is a superior valuation
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Advanced Corporate Finance and Modeling – FINA0065-1 Assignment #1 – Laura Martin: Real Options and the Cable Industry 1. Consider the multiples analysis developed in Exhibits 2‚5 & 6 Please describe the method of ‘Multiples’ using case numbers and answer to the following questions: 1.1. What assumptions does this analysis rely upon? 1.2. How is Martin’s regression analysis different from/similar to traditional multiples analysis? 1.3. Do you agree with her interpretation of the regression
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Chapter 13 Real Options and Other Topics in Capital Budgeting Learning Objectives After reading this chapter‚ the student should be able to: ◆ Explain why conventional NPV analysis may not capture a project’s impact on the firm’s opportunities. ◆ Identify five different types of real options. ◆ Explain what an abandonment/shutdown option is‚ give an example of a project that includes this type of option‚ and explain what an option value is. ◆ Explain what a decision
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parents and students who are interested in taking up game development courses in certain schools such as De La Salle-College of Saint Benilde. His talks cover the scope of the course‚ the activities involved and the career paths‚ and the numerous options after graduating. This helps ease the worries and cures the misconceptions of the parents‚ and also helps the students build a more realistic expectation of what lies ahead. So is game development technical like computer science class or is it more
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lead to the huge loss of CITIC Pacific Limited and point out the importance of managing foreign exchange exposure through select appropriate hedging strategies. The huge loss of CITIC Pacific Limited and its cause is discussed in the first part. The importance of hedging and the tools of hedging are respectively reviewed in part two and part three. Finally‚ suggestions are given out on how to design proper hedging strategies for different enterprises. The huge loss of CITIC Pacific LimitedOn October
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