1 Introduction and corporate governance P R E PA R E D A N D U P D AT E D B Y H O A N G U Y E N F O R T H E U N I T T E A M Contents Introduction 1 Objectives 1 Topic overview 1. Goals and governance of the firm 2. Present value and its link to the objectives of the firm 3. An overview of corporate financing 2 2 3 4 Learning resources Textbook Deakin Studies Online (DSO) 4 4 4 © Deakin University C O R P O R AT E F I N A N C E TO P IC 1 Introduction
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Mercury Athletic Footwear Case Assignment Questions: 1. Is Mercury a good target for AGI? Discuss strategic fit of brands‚ products‚ customers‚ and distribution. Identify specific sources of value. Discuss AGI’s strengths/weaknesses compared with other bidders. I think Mercury is a good target for AGI: The brands--the AGI brands and logos are associated with a lifestyle that was prosperous‚ active and fashion-conscious. The Mercury brands are athletic and casual footwear. The products--AGI focused
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Chartered Financial Analyst® CFA® 2011 CFA Level 1 Sample Exam Questions and Answers • 2011 CFA Level 1 Sample Exam Version 1-2 2011 CFA Level 1 Sample Exam 2011 Level 1 Sample Exam Volume 1 SS1 -Ethics and Professional Standards 1. Abasi Hasina‚ CFA‚ signed an employment contract with a non-compete clause restricting him from working for a competitor for three years after leaving the employer‚ an investment bank. After one year‚ Hsaina. quits his job for a position with an investment
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Management pg. 4 6. Controlling the Risk pg. 5 7. Diversification pg. 6 8. CAPM pg. 7 9. Beta: Advantages and Disadvantages pg. 8 10. Options pg. 10 11. Hedging pg. 11 12. Net Present Value (NPV) pg. 12 13. Technical Indicators: pg. 14 14. Efficiency Frontier pg. 15 14. Conclusion pg. 16 15. Bibliography pg. 18 16. Bonus Assignment- Investing Websites pg. 19 Modern Portfolio
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impairment of assets at the balance sheet date. The amount of the loss is measured by the amount that the carrying amount of the assets exceeds the expected compensation. At the time the expropriation occurs‚ the related assets are written off against the allowance account. In this problem‚ we established a valuation account because certain specific assets were impaired. A valuation account was established rather than a liability account because the net realizable value of the assets affected has
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valuation methods to ascertain if there is value in the acquisition of Southern Comfort. These methods all yield the same result‚ i.e. Southern Comfort is expensive at the asking price of $94.6million. The valuation methods also examined the reasonableness of the acquisition using methods such as Free Cashflow Analysis‚ Book Value methods and Price Earnings ratios analysis The qualitative aspects have also been analysed to find out if there is value from a qualitative perspective. Methods such
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or procedures‚ designed to guide an investor ’s selection of an investment portfolio. Usually the strategy will be designed around the investor ’s risk-return tradeoff: some investors will prefer to maximize expected returns by investing in risky assets‚ others will prefer to minimize risk‚ but most will select a strategy somewhere in between. Passive strategies are often used to minimize transaction costs‚ and active strategies such as market timing are an attempt to maximize returns. In the week
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decision‚ namely the influence that it has on inflation. Thus‚ in a brief introduction spotlighted how we have perceived inflation today‚ what it means and how it manifests itself. An ample space in the paper is dedicated manner of determining the net present value in the presence of inflation‚ with an emphasis on the link between the real interest rate‚ the nominal interest rate and the inflation rate. To be convincing in our approach we introduced in the last part of the paper a case study in which we
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following statements regarding limited partnerships is true A) There is no limit on a limited partners liability. B) A limited partners liability is limited by the amount of their investment. C) A limited partner is not liable until all the assets of the general partners have been exhausted. D) A general partners liability is limited by the amount of their investment. Answer B 7) Which of the following is / are an advantage of incorporation A) Access to capital
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Result represents the CF impact of the project. The present discounted value of these incremental CF is the NPV of the project * CF = EBIT – Taxes + Depreciation – Capital Expenditures (CAPX) * EBIT (Earnings Before Interest & Taxes) = Revenues – Cost – Depreciation * EBIAT = EBIT * (1-TaxRate) * Taxes = CorpTaxRate * (Revenues – Costs – TaxShield) * FinalCF = SellingPrice – Taxes * NWC = Current Assets – Current Liabilities (change in NWC must = 0) * Projects of greater
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