Finance management cengage 2013 chapter 019

Finance management cengage 2013 chapter 019

Finance management cengage 2013 chapter 019

... customers 19-3 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part Multinational Financial Management ... Domestic Financial Management Different currency denominations Political risk Economic and legal ramifications Role of governments Language and cultural differences 19-4 © 2013 C...
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Finance management cengage 2013 chapter 01

Finance management cengage 2013 chapter 01

... Finance Within the Organization 1-2 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, ... ever-improving information technology have had a profound effect on all aspects of business finance 1-9 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, or posted ... Difficult to raise capital – Unlimited liability –...
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Finance management cengage 2013 chapter 02

Finance management cengage 2013 chapter 02

... online sources (Yahoo !Finance, CNNMoney, or MSN MoneyCentral) Stock Quote for GlaxoSmithKline, July 11, 2011 Source: GlaxoSmithKline (GSK), finance. yahoo.com 2-13 © 2013 Cengage Learning All Rights ... institutions who need to raise funds to finance their investment opportunities These groups are willing to pay a rate of return on the capital they borrow 2-2 © 2013 Cengage Learni...
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Finance management cengage 2013 chapter 03

Finance management cengage 2013 chapter 03

... 32,592 492,592 2,866,592 2011 145,600 200,000 136,000 481,600 323,432 460,000 203, 768 663,768 1,468,800 3-5 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, ... Stockholders’ Shares Amount Earnings Equity 100,000 $460,000 $ 203, 768 $663,768 (160,176) (11,000) 100,000 $460,000 $ 32,592 (171,176) $492,592 3-8 © 2013 Cengage Learning All Rights Res...
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Finance management cengage 2013 chapter 04

Finance management cengage 2013 chapter 04

... FA Total Assets 2013E 85,632 878,000 1,716,480 2,680,112 1,197,160 380,120 817 ,040 3,497,152 2012 7,282 632,160 1,287,360 1,926,802 1,202,950 263,160 939,790 2,866,592 4-2 © 2013 Cengage Learning ... Total L & E 2013E 436,800 300,000 408,000 1,144,800 400,000 1,721,176 231,176 1,952,352 3,497,152 2012 524,160 636,808 489,600 1,650,568 723,432 460,000 32,592 492,592 2,866,592 4-3 © 2013...
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Finance management cengage 2013 chapter 05

Finance management cengage 2013 chapter 05

... Compound Each Cash Flow 5% 100 100 100 110.25 121.55 331.80 FV3 = $100(1 .05) 4 + $100(1 .05) 2 + $100 FV3 = $331.80 5-35 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, ... PV +  M   M×N 2×3  0.10  FV3S = $100 +    FV3S = $100(1 .05) 6 = $134.01 FV3Q = $100(1.025)12 = $134.49 5-32 © 2013 Cengage Learning All Rights Reserved May not be...
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Finance management cengage 2013 chapter 06

Finance management cengage 2013 chapter 06

... 6.5% (1 .065 )5 = (1 .062 )2 (1 + X)3 1.37009/1.12784 = (1 + X)3 6.7005% = X • The pure expectations theory says that three-year securities will yield 6.7005%, two years from now 6-20 © 2013 Cengage ... © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part One-Year Forward Rate 6.0% x% 6....
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Finance management cengage 2013 chapter 07

Finance management cengage 2013 chapter 07

... instances where the business is worth more “alive than dead.” – Chapter 11, Reorganization – Chapter 7, Liquidation 7-41 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, ... problems 7-40 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part Bankruptcy • Two mai...
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Finance management cengage 2013 chapter 08

Finance management cengage 2013 chapter 08

... © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part Partial Correlation, ρ = +0.35 8-27 © 2013 ... be shown graphically Firm X Firm Y -70 15 100 Rate of Return (%) Expected Rate of Return 8-3 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, or pos...
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Finance management cengage 2013 chapter 09

Finance management cengage 2013 chapter 09

... Ownership implies control Stockholders elect directors Directors elect management Management’s goal: Maximize the stock price 9-2 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, ... Their PVs D0 = $2 and g is a constant 6% g = 6% 1.8761 1.7599 2.12 2.247 2.382 rs = 13% 1.6 509 9-11 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or du...
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Finance management cengage 2013 chapter 010

Finance management cengage 2013 chapter 010

... © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part Divisional Cost of Capital 9-30 © 2013 Cengage ... refer to the firm’s capital structure weights •The r’s refer to the cost of each component 10-3 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicate...
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Finance management cengage 2013 chapter 011

Finance management cengage 2013 chapter 011

... (1 + MIRRL)3 MIRRL = 16.5% TV inflows Excel: =MIRR(CF0:CFn ,Finance_ rate,Reinvest_rate) We assume that both rates = WACC 11-22 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, ... the appropriate cost of capital Find NPV and/or IRR Accept if NPV > and/or IRR > WACC 11-3 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, or po...
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Finance management cengage 2013 chapter 012

Finance management cengage 2013 chapter 012

... on operations – New sales: 100,000 units/year @ $2/unit – Variable cost: 60% of sales 12-2 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, or posted to ... life: years – Depreciable life: MACRS 3-year class – Salvage value: $25,000 WACC: 10% 12-3 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, or posted to ....
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Finance management cengage 2013 chapter 013

Finance management cengage 2013 chapter 013

... from managers’ responses to changing circumstances that can influence a project’s outcome 13-2 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, or posted to ... Growth/expansion options Abandonment/shutdown options Investment timing options Flexibility options 13-3 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplic...
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Finance management cengage 2013 chapter 014

Finance management cengage 2013 chapter 014

... debt-financed assets, so leverage will depress income • As debt increases, TIE decreases because EBIT is unaffected by debt, but interest expense increases (Int Exp = rdD) 14-15 © 2013 Cengage ... personal tax rate? Increase in bankruptcy costs? Management spending lots of money on lavish perks? Financial flexibility? Firm’s growth rate? 14-38 © 2013 Cengage Learning All Rights Rese...
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