Chapter 1 Comparative Corporate Governance and Financial Goals End-of-Chapter Questions 1. Corporate goals: shareholder wealth maximization. Explain the assumptions and objectives of the shareholder wealth maximization pmodel. Answer: The Anglo-American markets have a philosophy that a firm’s objective should follow the shareholder wealth maximization (SWM) model. More specifically‚ the firm should strive to maximize the return to shareholders‚ as measured by the sum of capital gains and dividends
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FINANCIAL MANAGEMENT FOR NON-FINANCE MANAGERS Questions Exercise 1: This exercise is intended to make sure that we are all familiar with terms used debt financing. (10 points) (10) Fill the blanks by choosing the appropriate term from the following list: lease‚ funded‚ floating-rate‚ Eurobond‚ convertible‚ subordinated‚ call‚ sinking fund‚ prime rate‚ private placement‚ global bond‚ public issue‚ senior‚ unfunded‚ Eurodollar rate‚ warrant‚ debentures‚ term loan. a. Debt maturing in
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cut today’s commuting times substantially. However‚ they are facing 3 different options for funding this new acquisition. One of the options is to issue new bonds and therefore borrow the money and purchase these trains. The second option is a leveraged lease proposed by Bank of New York Capital Funding. The final option is to rely on federal funding. Some of the assumptions facing this acquiring of the asset are that they will have a useful life of 25 years. The train sets will also have a
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Corporate Restructuring: Corporate restructuring is one of the most complex and fundamental phenomena that management confronts. Each company has two opposite strategies from which to choose: to diversify or to refocus on its core business. While diversifying represents the expansion of corporate activities‚ refocus characterizes a concentration on its core business. From this perspective‚ corporate restructuring is reduction in diversification. Corporate restructuring is an episodic exercise‚
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| Brazil | 68 | Roman Abramovich | $12.1 B | 46 | steel‚ investments | Russia | 69 | Donald Bren | $12 B | 80 | real estate | United States | 69 | Jorge Paulo Lemann | $12 B | 73 | beer | Brazil | 69 | Ronald Perelman | $12 B | 69 | leveraged buyouts | United States | 72 | Len Blavatnik | $11.9 B | 55 | diversified | United States | 72 | Leonid Mikhelson | $11.9 B | 57 | gas‚ chemicals | Russia | 74 | Leonardo Del Vecchio | $11.5 B | 77 | eyewear | Italy | 75 | John Fredriksen | $11
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Mergers and Acquisitions Broc Romanek and Cynthia M. Krus FINANCE 05.09 I Fast track route to mastering mergers and acquisitions I Covers the key areas of M&A‚ from detailing how to structure different types of transactions to meet varying objectives to the history of M&A activity and the impact of the Internet and other new technologies I Examples and lessons from some of the world’s most successful businesses‚ including Daimler-Chrysler‚ Vodaphone-Mannesman and UFJ Bank I Includes a
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factory store. This provided the customers with an ‘experience’‚ allowing them to see the doughnut factory and it’s specialized machines‚ and not just the usual taste. A turnaround was effected when the ailing enterprise was bought out in a leveraged buyout by a group of franchisers lead by Joseph McAleer. He brought back the unique doughnut recipe and the company’s traditional logo. Slowly the company improved and was eventually debt-free. In 1998‚ the company went public in a hugely successful
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Yahoo Corporate Governance and the Microsoft Takeover We are studying the potential buyout of Yahoo by Microsoft from the perspective of Yahoo’s Board of Directors. Yahoo! Inc. provides Internet services to users‚ advertisers‚ publishers and developers worldwide. It offers online properties and services to users; and marketing solutions and tools to advertisers and publishers. For example‚ Yahoo! Finance is a portal for information on general financial conditions and specific firm information
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“The Takeover Controversy: Analysis and Evidence.” Midland Corporate Finance Journal 4‚ no Jensen‚ M. C. and Jr. Clifford Smith (1985). “Stockholder‚ Manager and Creditor Interests: Applications of Agency Theory” Lowenstein‚ L. (1985). “Management Buyouts.” Columbia Law Review 85 (May): 730784. Mueller‚ D. (1980). The Determinants and Effects of Mergers. Cambridge‚ Oelgeschlager. Murphy‚ Kevin J. (1985). “Corporate Performance and Managerial Remuneration: An Empirical Analysis.” Journal of Accounting
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ADVISING IN MERGERS‚ ACQUISITIONS‚ AND FINANCIAL RESTRUCTURING ADVISING Investment banks are active in mergers and acquisitions (M&A)‚ leveraged buyouts (LBOs)‚ restructuring and recapitalization of companies‚ and reorganization of bankrupt and troubled companies. They do so in one or more of the following ways: (1) identifying candidates for a merger or acquisition‚ M&A candidates; (2) advising the board of directors of acquiring companies or target companies regarding price and non-price terms
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