Managing Motivation in a Difficult Economy
CORPORATE FINANCE
I. Stockholder Analysis 2
II. Measuring Investment Returns 2
III. Risk and Return 2
IV. Capital Structure Choices 2
V. Optimal Capital Structure 2
VI. Mechanics of Moving to the Optimal 2
VII. Dividend Policy 3
VIII. A Framework for Analyzing Dividends 3
IX. Valuation (Optional) 3
I. Stockholder Analysis a. Who is the average investor in this stock? (Individual or pension fund, taxable or tax-exempt, small or large, domestic or foreign) b. Who is the marginal investor in this stock? c. Applies material from: Session 1
II. Measuring Investment Returns d. Is there a typical project for this firm? If yes, what would it look like in terms of life(long term or short term), investment needs and cash flow patterns? e. How good are the projects that the company has on its books currently? f. Are the projects in the future likely to look like the projects in the past? Why or why not? g. Applies material from: Session 2-4
III. Risk and Return a. What is the risk profile of your company? (How much overall risk is there in this firm? Where is this risk coming from (market, firm, industry or currency)? How is the risk profile changing?) b. What is the performance profile of an investment in this company? c. What return would you have earned investing in this company’s stock? Would you have under or outperformed the market? How much of the performance can be attributed to management? d. How risky is this company’s equity? Why? What is its cost of equity? e. How risky is this company’s debt? What is its cost of debt? f. What is this company’s current cost of capital? g. Applies material from: Session 6
IV. Capital Structure Choices h. What are the different kinds or types of financing that this company has used to raise funds? Where do they fall in the continuum between debt and equity? i. How large, in qualitative or quantitative
I. Stockholder Analysis 2
II. Measuring Investment Returns 2
III. Risk and Return 2
IV. Capital Structure Choices 2
V. Optimal Capital Structure 2
VI. Mechanics of Moving to the Optimal 2
VII. Dividend Policy 3
VIII. A Framework for Analyzing Dividends 3
IX. Valuation (Optional) 3
I. Stockholder Analysis a. Who is the average investor in this stock? (Individual or pension fund, taxable or tax-exempt, small or large, domestic or foreign) b. Who is the marginal investor in this stock? c. Applies material from: Session 1
II. Measuring Investment Returns d. Is there a typical project for this firm? If yes, what would it look like in terms of life(long term or short term), investment needs and cash flow patterns? e. How good are the projects that the company has on its books currently? f. Are the projects in the future likely to look like the projects in the past? Why or why not? g. Applies material from: Session 2-4
III. Risk and Return a. What is the risk profile of your company? (How much overall risk is there in this firm? Where is this risk coming from (market, firm, industry or currency)? How is the risk profile changing?) b. What is the performance profile of an investment in this company? c. What return would you have earned investing in this company’s stock? Would you have under or outperformed the market? How much of the performance can be attributed to management? d. How risky is this company’s equity? Why? What is its cost of equity? e. How risky is this company’s debt? What is its cost of debt? f. What is this company’s current cost of capital? g. Applies material from: Session 6
IV. Capital Structure Choices h. What are the different kinds or types of financing that this company has used to raise funds? Where do they fall in the continuum between debt and equity? i. How large, in qualitative or quantitative