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 Early 20.6 – Options and Corporate Finance ADVANCED CORPORATE
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“Case: Tianjin Plastics” Vrije Universiteit Amsterdam Course Advanced Corporate Finance Students Fatin Azear Jos Kusters Maaike van der Steen Case: Tianjin Plastics This assignment considers the case of Tianjin Plastics. Pat Johnson‚ project finance analyst for Maple Energy (U.S.-based international power plant developer)‚ has to make a recommendation regarding the financial viability of the Tianjin Plastics power plant project in China. The recommendation would require a final evaluation of
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of the East Coast fishery in Canada. By: Seth Giddens In 1992‚ the devastating collapse of the fishing industry on the East Coast of Newfoundland‚ Nova Scotia forced the Canadian government to take drastic measures and close the fishery. But what could’ve caused such a horrible downfall of one of Canada’s biggest national resources? The East Coast Fishery is made up of offshore fisheries and inshore fisheries. An Offshore fishery is a type of fishery that is over 25 metres of the coast. This type
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CHAPTER 13--TAX CREDITS AND PAYMENT PROCEDURES Key 1. The tax benefit received from a tax credit is affected by the tax rate of the taxpayer. FALSE 2. The tax benefits resulting from tax credits and tax deductions are never affected by the tax rate bracket of the taxpayer. FALSE 3. Nonrefundable credits are those that reduce the taxpayer’s tax liability but are not paid when the amount of the credit (or credits) exceeds the taxpayer’s tax liability. TRUE 4. The credit for child
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Chapter 13 Inventory Management Answers to Discussion and Review Questions 1. Inventories are held (1) to take advantage of price discounts‚ (2) to take advantage of economic lot sizes‚ (3) to provide a certain level of customer service‚ and (4) because production requires some in-process inventory. 2. Effective inventory management requires (1) cost information‚ information on demand and lead time (amounts and variabilities)‚ an accounting system‚ and a priority system (e.g.‚ A-B-C)
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The Scope Of Corporate Finance Professor Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics Finance Career Opportunities Corporate Finance • Budgeting‚ financial forecasting‚ cash management‚ credit administration‚ investment analysis‚ fund procurement Commercial Banking Investment Banking Money Management 2 • Consumer banking • Corporate banking • High income potential • Very competitive industry • Opportunities in investment advisory firms‚ mutual fund companies
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3–1. The members of a truss are pin connected at joint O. Determine the magnitudes of F1 and F2 for equilibrium. Set u = 60°. y 5 kN F2 70Њ 30Њ x SOLUTION + : ©Fx = 0; O F2 sin 70° + F1 cos 60° - 5 cos 30° - 4 (7) = 0 5 5 3 4 0.9397F2 + 0.5F1 = 9.930 7 kN + c ©Fy = 0; u 3 F2 cos 70° + 5 sin 30° - F1 sin 60° - (7) = 0 5 F1 Solving: T an his th d wo sa eir is p rk w le co ro is ill o u vi pr de f a rse de ot st ny s d s ec ro p an
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U NIVERSITY OF L UXEMBOURG ‚ L UXEMBOURG S CHOOL OF F INANCE Corporate Finance Master in Economics and Finance 2nd Assignment - Stock valuation + Cost of capital Due on 10/3/2014 E XERCISE 1 Starr Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year‚ indefinitely. If investors require a 12 percent return on the stock‚ what is the current price? What will the price be in three years? In 15 years? E XERCISE
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13. Organizational Change Understanding Key Concept l Change agents are people who take action to change the behavior of people and systems. l Unplanned change occurs spontaneously and without a change agent’s direction. l Planned change is intentional and occurs with a change agent’s direction. l Unfreezing is the stage at which a situation is prepared for change. l Changing is the stage in which specific actions are taken to create change. l Refreezing is the stage in which changes are
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Chapter One Basic Areas of Finance: 1. Corporate Finance = Business Finance 2. Investments a. Work with financial assets such as stocks and bonds. b. Value of financial assets‚ risk verses return and asset allocation. c. Job opportunities. 3. Financial Institutions a. Companies that specialize in financial matters. i. Banks – Credit unions‚ savings‚ and loans. ii. Insurance Companies iii. Brokerage Firms b. Job Opportunities. 4. International Finance a. An area of specialization within each of the
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