(excluding multiple-choice questions) Please‚ keep at least 4 decimal points while performing your calculations. Marks will be deducted for rough rounding!!! The exam consists of two parts and one bonus question and is counted out of 40 points. In case your total mark (including the bonus question) exceeds 40 points‚ you will be awarded only 40 points for this exam and no extra credits will be given for the remaining points. Note s to Grader: Please‚ do not double-punish students for the
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Issues 1. Explain why an individual investor might want to invest in an international growth fund? 2. Describe the risk associated with making an investment in an international growth fund. Identify the risks that would be common to domestic an international funds‚ and those risk that would be unique to an international fund. 3. Discuss how the fact that foreign companies are not subject to the same accounting‚ auditing‚ and financial reporting standards and practices as U.S. companies poses
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wherein the acquiring firm retains its identity and the acquired firm ceases to exist as a separate entity‚ is called a: A. merger. b. consolidation. c. tender offer. d. spinoff. e. divestiture. SECTION: 25.1 TOPIC: MERGER TYPE: DEFINITIONS 2. A merger in which an entirely new firm is created and both the acquired and acquiring firms cease to exist is called a: a. divestiture. B. consolidation. c. tender offer. d. spinoff. e. conglomeration. SECTION: 25.1 TOPIC: CONSOLIDATION TYPE:
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CORPORATE FINANCE – CONCEPT QUESTIONS Class Notes - Introduction to Corporate Finance 1. Finance point of view: Corporation: a money processing machine? * Product markets: everything what corporates make (lead with customers‚ suppliers‚ labor) * Capital markets: generic term for the entities which supply cash to this money processing machine‚ and the processing machine uses the money to do things and then periodic sends money back to the capital market there are inflows from the
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competitors will stem from TRUST’s choice of capital structure‚ i.e. level of debt to equity. If RV was financed completely by equity‚ the cost of equity is the cost of capital for RV. Using the industry beta to determine rE suggests that RV’s equity risk is the same as that of the industry. The variation in business risk between RV and its industry competitors thus stems from the introduction of debt into the capital structure. Year Forecast 1 2 3 4 5 6 Sales 22000 23210 24487 25344
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Corporate Finance Essay Most corporate financing decisions in practice reduce to a choice between debt and equity. The finance manager wishing to fund a new project‚ but reluctant to cut dividends or to make a rights issue‚ which leads to the decision of borrowing options. The issue with regards to shareholder objectives being met by the management in making financing decisions has come to become a major issue of recent times. This relates to understanding the concept of the agency problem. It deals
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[Type text] [Type text] [Type text] FIRST INVESTMENTS‚ INC.: ANALYSIS OF FINANCIAL STATEMENTS CARLOS VILLICANA THURSDAY OCTOBER 23RD‚ 2014 MACC 6753 - FINANCIAL STATEMENT ANALYSIS DANA MCLENDON‚ MBA WEEK 2 EXECUTIVE SUMMARY Basic Industries is a diversified multinational corporation with major shares in various electric related markets. There is stock that has been held since the early 1980s and we have been asked to analyze and evaluate the past 10 years of data to either sell or continue
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questions of corporate finance? a. Investment decision (capital budgeting): What long-term investment strategy should a firm adopt? b. Financing decision (capital structure): How much cash must be raised for the required investments? c. Short-term finance decision (working capital): How much short-term cash flow does company need to pay its bills. ( Describe capital structure. Capital structure is the mix of different securities used to finance a firm’s investments
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The Warnaco Group Inc. – Accounts Receivable Refer to Warnaco’s Form 10-Q for the quarter ended April 3‚ 1993. A. What is a Form 10-Q? How do the financial statements included in a Form 10-Q differ from the financial statements included in a Form 10-K filing? The Form 10-Q is a quarterly report designed to give a status of how a business is doing after three months of operation. The Form 10-Q and the Form 10-K differ in the report’s interval; the Form 10-K is an annual report. B
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in Sky-blue. The financial report will provide detailed analysis on the feasibility of ‘mutually exclusive projects’‚ in which a recommendation will be made on one project‚ in which alternative proposals cannot be followed simultaneously (Dayananada D et al‚2002). The report will represent the detailed research and financial analysis of each proposal taking into consideration the investment amount‚ subsequent returns and related risks. The analysis will include the necessary financial models NPV
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