Fundamentals of Corporate Finance Phần 10 potx

... liabilities of the target firm into those of its own company; (2) it can buy thestock of the target; or (3) it can buy the individual assets of the target. The offer to buy thestock of the target ... price of the foreign product.This conclusion is often called the law of one price. Just as the price of goods inSafeway must be roughly the same as the price of goods in A&P, so the price of ... Leisure Prod-ucts for every three shares of Plastitoys?d. How would the cost of the cash offer and the share offer alter if the expected growth rate of Plastitoys were not increased by the merger?1...

Fundamentals of Corporate Finance Phần 1 potx

... MarcusWallace E. Carroll School of ManagementBoston Collegewith additional material from Fundamentals of Corporate Finance, Alternate Fifth EditionEssentials of Corporate Finance, Second EditionStephen ... material from Fundamentals of Corporate Finance Third EditionRichard A. BrealeyBank of England and London Business SchoolStewart C. MyersSloan School of ManagementMassachusetts Institute of TechnologyAlan ... from those of the firm.These problems are kept in check by compensation plans that link the well-being of employees to that of the firm, by monitoring of management by the board of directors,security...

Fundamentals of Corporate Finance Phần 2 ppsx

... annual payments of $10, 000 fora period of 10 years. The first payment will be made 4 years from now. If the interest rate is6 percent, what is the present value of this stream of payments?35. ... limited number of years is called an annuity. The present value of astream of cash flows is simply the sum of the present value of each individual cash flow.Similarly, the future value of an annuity ... hasincreased by 10 percent to $10, 942.15. Alternatively, asdepicted in Figure 3 .10, you can calculate the value of the$4,000 immediate payment plus the value of a 2-year an-nuity of $4,000. Inputs...

Fundamentals of Corporate Finance Phần 3 pot

... Microsoft’s total capital in 1997 was$7.2 billion. With a return of 53 percent, it earned profits on this figure of .53 × 7.2 =$3.8 billion. The total cost of the capital employed by Microsoft ... cents of tax on each dollar of income up to an income of $62,450. For example, if your total in-come is $40,000, your tax bill is 15 percent of the first $25,750 of income and 28 per-cent of the ... 143PROFITABILITY RATIOSProfitability ratios focus on the firm’s earnings.Net Profit Margin. If you want to know the proportion of revenue that finds its wayinto profits, you look at the profit margin....

66
1,809
0

Fundamentals of Corporate Finance Phần 4 docx

... dividends 10 10 10 Capital expenditures 100 0 0Complete the following cash budget:February March AprilSources of cashCollections on current salesCollections on accounts receivableTotal sources of ... 0Repayments9. Of stretched payables 0 0 10. 8 0 10. Of bank loan 0 0 13.8 31.2Increase in cash balances11. Addition to cash balances 0 0 0 3.2Bank loan12. Beginning of quarter 0 40 45 31.213. End of ... 12,680200,000 5 100 ,000 450 5,000 5,450 100 ,000 10 50,000 900 2,500 3,40060,000 16.7 30,000 1,500 1,500 3,00050,000 20 25,000 1,800 1,250 3,05020,000 50 10, 000 4,500 500 5,000 10, 000 100 5,000 9,000...

Fundamentals of Corporate Finance Phần 5 ppt

... The rate of return is the couponrate. We can check this by setting out the cash flows on your investment:Cash Paid to You in YearYou Pay 1 2 3 Rate of Return$1,000 $100 $100 $1 ,100 10% Notice ... market price of the 3-year bond is $1,136.16. Your cash flowsare as follows:Cash Paid to You in YearYou Pay 1 2 3 Rate of Return$1,136.16 $100 $100 $1 ,100 ?What’s the rate of return now? ... a price of $1, 010. 77 and sell it next year at a price of $1,020. The return on your investment is the $60 coupon payment plus the price change of ($1,020 – $1, 010. 77) = $9.33. The rate of return...

Fundamentals of Corporate Finance Phần 6 doc

... billsRate of return, percentNumber of years0 10 20Ϫ30Ϫ40 10 20 30 40 5013.2 20.3Common stocksRate of return, percentNumber of years0 10 10 203.2 4.5 InflationRate of return, percentNumber of ... Cost of Capital 321• Head + head: You make 20 + 20 = 40%• Head + tail: You make 20 – 10 = 10% • Tail + head: You make 10 + 20 = 10% • Tail + tail: You make 10 – 10 = –20%There is a chance of ... cost of capital.2. The rate of return rule. Invest in any project offering a rate of return that is higherthan the opportunity cost of capital.1Recall that we are assuming the profit on the office...

Fundamentals of Corporate Finance Phần 7 pot

... percentϪ26240 810 6Ϫ8 10 Ϫ4Ϫ25Ϫ20Ϫ15 10 Ϫ505 10 1520Beta ؍ .61Standard deviation ؍ 16%25(a)Market return, percentPolaroid return, percent؊26240 810 6؊8 10 ؊4؊25؊20؊15 10 ؊505 10 152025Beta ... return,percentϪ5Ϫ20 Ϫ15 10 5 101 520(a)Ϫ20 10 0 10 20Index 500 return,percentMarket return,percentϪ5Ϫ20 Ϫ15 10 5101 520(b)MARKET RISKPREMIUMRisk premium of market portfolio.Difference ... low beta of .61.MCI return, percentMarket return, percent(a)Ϫ30Ϫ20 10 0 10 2030Ϫ5Ϫ20 Ϫ15 10 50 101 5202The line of best fit is usually known as a regression line. The slope of the line...

66
2,372
16

Fundamentals of Corporate Finance Phần 8 doc

... profitspercentage change in sales .01= 100 ×change in profits= 100 ×.01 × (profits + fixed costs)level of profits level of profits=1 +fixed costsprofitst helps to use discounted cash-flow ... profits will increase by .01 × (sales – variable costs) = .01 × (profits + fixedcosts). Now recall the definition of DOL:DOL =percentage change in profits=change in profits/level of profitspercentage ... maturity of 10 years, and a yield to maturity of 10 percent. The coupons are paid annually. The other bond issue has a maturity of 15 years, withcoupons also paid annually, and a coupon rate of 10...

66
2,734
1

Fundamentals of Corporate Finance Phần 9 doc

... asset.A. Balance Sheet with Purchase(the company finances a $100 ,000 truck with debt)Truck $100 ,000 Debt $100 ,000Other assets $100 ,000 Equity $100 ,000Total assets $200,000 Total debt plus $200,000equityB. ... operates a chain of 140 fast-food outlets in the UnitedStates offering unusual combinations of dishes.The Offering: Common Stock offered by the Company 500,000 shares;Common Stock offered by the ... initial public offerings and the costs of such offerings.᭤Know what is involved when established firms make a general cash offer or a pri-vate placement of securities.᭤Explain the role of the underwriter...

Xem thêm