Advanced Corporate Finance I SS 2012 Problem Set 1 Valuing Cash Flows Problem Set 1 Valuing Cash Flows Exercise 1 (Ex. 11.2 - 11.6 GT): Assume that Marriott’s restaurant division has the following joint distribution with the market return: Market Scenario Bad Good Great .25 .50 .25 Probability Market Return (%) -15 5 25 YR 1. Cash Flow Forecast $40 million $50 million $60 million Assume also that the CAPM holds. 11.2 Compute the expected year 1 restaurant cash flow for Marriott. 11.3 Find
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LYON | SHANGHAI EDUCATING ENTREPRENEURS FOR THE WORLD ADVANCED CORPORATE FINANCE BELZE Loïc Financial Options Lecture 7 – Chapter 20 ADVANCED CORPORATE FINANCE – BELZE Loïc – Adapted from 2011 Berk & DeMarzo Pearson Education 7 - 20 - 1 www.em-lyon.com © EMLYON School EMLYON Business 2011 Chapter Outline • • • • • • 20.1 – Option Basics 20.2 – Option Payoffs at Expiration 20.3 – Put-Call Parity 20.4 – Factors Affecting Option Prices 20.5 – Exercising Options
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Agilent Technologies Case Study Business Objective: The IT philosophy of Agilent is to conduct its business on-line‚ in real time using the internet and the state of the art technology currently available in the market‚ with the objective of being an efficient enterprise. The primary objective of any organization is to increase revenue and decrease cost simultaneously. It is to be kept in mind‚ that due to the rapid changes in technology‚ an IT investment cannot be planned for more than 5
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A fire occurred in a transformer vault that supplied power to a pesticide storage warehouse. The warehouse also caught fire. The warehouse was located in a rural area. There was a river adjacent to the warehouse that was the source of drinking water for a town downstream of the warehouse. The chemical products that were used in the transformer and the chemicals that were stored in the warehouse were all industrial strength and were supposed to be handled with extreme caution. All of these chemicals
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Scene 1: Characters: Edmund‚ Regan‚ Goneril‚ Albany‚ Edmund: Authoritative‚ Sneaky‚ and Wicked “Know of the duke if his last purpose hold‚ Or whether since he is advised by aught‚ To change the course. He’s full of alteration And self-reproving. Bring his constant pleasure (V‚ I‚ 1-4).” Edmund displays himself as a ruler in full command of the kingdom‚ since the Duke of Albany is indecisive (Authoritative). “To both these sisters have I sworn my love‚ Each jealous of the other as the stung‚ Are
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At my high school‚ junior year is the first year in which a student is able to enroll in Advanced Placement courses offered through the College Board. The teachers of these classes have a reputation of being the most difficult on campus‚ even creating a reputation of their extreme workloads and high standards in the neighboring high school. Regardless of their reputation‚ I enrolled in each of the Advanced Placement core classes. Though many advised not to take more than two A.P. classes‚ as
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Does your family know what you want should you become extremely ill or injured? Are you comfortable with allowing them to make a decision about your end of life care? If not‚ you would be interested in doing some Advanced Directive. Health Care Advance directives are legal documents that allow you to convey your decisions about end-of-life care ahead of time. They provide a way for you to communicate your wishes to family‚ friends and health care professionals‚ and to avoid confusion later on. “Normally
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Assignment One - Case study‚ Hindustan Computers Limited (HCL Technologies) Behaviour modification strategies. Behavior modification strategies are based on the principals of operant conditioning and reinforcement theory‚ which take the view that learning is influenced by the environment. The renowned psychologist B. F. Skinner expressed that through operant conditioning‚ people’s behavior could be shaped by reinforcement or lack thereof. According to Wood‚ et al‚ a reinforcer is a stimulus
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In 1968‚ Fortnightly Corp. v. United Artists Television‚ Inc.‚ 392 U. S. 390‚ the Court determined that a CATV provider was more like a viewer than a broadcaster‚ because its system “no more than enhances the viewer’s capacity to receive the broadcaster’s sig¬nals by providing a well-located antenna with an efficient connec¬tion to the viewer’s television set.” Therefore‚ the Supreme Court held that a CATV provider does not violate the exclusive right of the copyright holder and hence did not perform
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Case Report Akamai Technologies 6/20/2010 Problems: In 2001‚ Akamai Technologies was faced with decreasing revenue and an economic recession. In order to grow and remain a strategic asset to its partners‚ Akamai has been challenged with the expansion of the internet as well as a choice to move away from a content delivery network (CDN). Problems Akamai is faced with over internet performance include fast technical growth such as file sharing and streaming media‚ reliability of services
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