BMCF 5103 CORPORATE FINANCE Dr. Nguyen Thi Hoang Anh Lecture 1: An Introduction to Corporate Finance Contents What is finance? What is corporate finance? The balance-sheet model of the firm Capital budgeting Capitalstructure The firm and thefinancial markets Forms of business organisation The goals of a corporation Agency relationships: stockholders versusmanagers‚ stockholders versus creditors Managers’ actions to maximise stockholder wealth Financial management
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value as compared to acquiring the new stadium and obtaining a new goal scorer. In order to do so we must evaluate the company by creating a Discounted Cash Flow analysis projecting the expected future revenues in the same current strategy which they are in. We would then lay out the future expected cash inflows with no initial cash out flow laid out due to the fact that they have already covered their initial expenses. We must take into account the growth rates that are expected for
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Governance accg301@mq.edu.au Learning Outcomes 1. Recognise the multiyear focus of capital budgeting 2. Understand the stages of capital budgeting and approval process for a capital expenditure project 3. Use and evaluate the two main discounted cash flow (DCF) methods: the net present value (NPV) method and the internal-rate-of-return (IRR) method 4. Use and evaluate the payback method (PB) 5. Use and evaluate the accounting rate-of-return (ARR) method 6. Income taxes and capital expenditure
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on them. From these four different “hurdles” will be used to evaluate if the capital expenditure proposal for Merseyside Works should go ahead. These being: * Impact on earnings per share * Payback Period * NPV of the project (Discounted Cash Flow method) * Internal Rate of Return Background Victoria Chemicals is a major competitor in the world wide chemical industry and a leader in producing polypropylene. Victoria Chemicals was under pressure from investors to improve
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of UBS AG Valuation Primer Series Peter Suozzo +852-2971 6121 ■ peter.suozzo@ubsw.com Stephen Cooper +44-20-7568 1962 ■ stephen.cooper@ubsw.com Issue 1 This is the first in a series of primers on fundamental valuation topics such as discounted cash flow‚ valuation multiples and cost of capital. This document explains how to calculate and use multiples commonly used in equity analysis. Gillian Sutherland +44-20-7568 8369 gillian.sutherland@ubsw.com Zhen Deng +1-212-713 9921 zhen.deng@ubsw
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SGMT 6050 – Mergers and Acquisitions Facebook IPO Facebook‚ a social networking site‚ has grown at an exponential rate that far surpasses market expectation‚ so much so that its growth rate is referred to as the “ Facebook phenomenal”. In 2004‚ Facebook had 1million monthly active users‚ and in comparison‚ it had reached 845million monthly active users in 2011. This phenomenal led to one of the biggest initial public offerings (IPO) the market had seen in recent years‚ with total capital raised
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¥ 1‚000/10%=¥10‚000 ii. Summer Sluggers ¥1‚500/15%=¥10‚000 iii. Elite Ballplayers (print ad) ¥300/0.5%=¥60‚000 iv. Elite Ballplayers (party) ¥12‚500/25%=¥50‚000 v. Entertainment Seekers ¥50/2.5%=¥2‚000 1. Calculate Breakeven cost (without discounted cash flow) per segment i. Little Leaguers Year 3‚ when their “Cumulative Profit to Date” turns ¥1‚563 from (¥1‚250) ii. Summer Sluggers Year 3‚ when their “Cumulative Profit to Date” turns ¥500 from (¥1‚000) iii. Elite Ballplayers (print ad) Year 4‚
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ARA Equimark report‚ some areas in Salt Lake have a lower vacancy rate compared with others. I would like to see how I could maximize the net present value of future cash flows by purchasing properties in different areas besides Draper. System Description The Real Estate Investment Model provides a clear picture of cash flows generated by investing my savings in real estate. It takes in consideration the following variables and assumptions: Inflation will play a key role to help me to justify
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we can say that interest coverage ratio computed as EBIT / Interest Expense was 1.31 in 1989 and has been decreasing over years and currently stands at 0.59. This raises a question of how the company can meet its interest payments without raising cash or selling assets. • The company evolved through an elaborate series of mergers and divestitures‚ and financed its acquisitions through debt. Coniston partners took on 1.4B of new debt after the acquisition in 1989. It incurred huge expenses of $1
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.3 2.2 Income Statement – Based methods..............................................................................3 2.3 Goodwill –Based methods.............................................................................................4 2.4 Cash flow discounting – Based method ........................................................................4 3. Investment decision process applied for preparing the long term financial plan of Biotechnology S.A .........................................
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