COMM370 – Alejandra Medina Practice for Lecture 12-13: Modigliani-Miller Propositions Question 1. Prove Modigliani-Miller proposition 1 with corporate taxes. As part of your answer‚ clearly state the underlying assumptions‚ explain the intuition underlying the proof‚ and conceptually interpret the meaning of the proposition. Note: you should be able to formally prove MM 1 & MM2 as we did in class. Question 2. Levered Inc. and Unlevered Inc. are identical in every respect except for capital
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ASSIGNMENT Course Code : MS-41 Course Title : Working Capital Management Assignment No. : MS-41/TMA /SEM-I/2013 Coverage : All Blocks Note : Attempt all the questions and submit this assignment on or before 30th April‚ 2013 to the coordinator of your study center. 1. Explain the Walker’s and Trade off approaches to working capital investment. 2. Discuss the motives for holding cash. Explain the Baumol Model and Miller and Orr Model. 3. What are advances? Explain the
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asset pricing model (CAPM) and the security market line Risk and Return M K Lai Page 2 Introduction to Risk and Return finance can be complicated‚ but it can be reduced to three basic concepts cash flows Risk and Return time value of money risk and return M K Lai building blocks in finance Page 3 Basic Assumptions in Finance people are rational people prefer more wealth to less (higher expected return) people are risk averse investors require compensation
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NATIONAL INSTITUTE OF SECURITIES MARKETS An Educational Initiative by SEBI Curriculum NISM-Series-VIII: Equity Derivatives Certification Examination VIII: I. Basics of Derivatives A. Basics of derivatives B. Evolution of derivatives m market C. Indian derivatives Market erivatives D. Market participants E. Types of derivatives market erivatives markets F. Significance of derivatives erivatives G. Various risk faced by the participants in derivatives II. Understanding Index A.
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performance of SDB‚ there are three aspects we should consider. And they are asset quality‚ earnings capability and capital adequacy of SDB. I will exam its asset quality first. Asset quality First of all‚ the asset quality of SDB seems in a big problem. There are two important asset quality measures that managers and analysts should pay attention to‚ they are NPL ratio (NPL/Gross loan) and NPL coverage ratio (LLR/NPL). Here‚ NPL means nonperforming loan‚ it is a sum of borrowed money upon which
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MOIZ KALABHAI STUDENT NUMBER-120491980 MBA CLASS 2013 ESSAY THE ROLE OF INTERNATIONAL MONETARY FUND 1 CONTENTS I– Page INTRODUCTION……………………………………………………………………………………….2 II – Brief History of Bretton Woods System……………………………………………………2 III – Formation of International Monetary Fund (IMF)…………………………………….3 IV – Role of IMF………………………………………………………………………………………………3 V – Post Period of 1972-81 (The Floating Exchange Rate Era)………………………….4 VI – Current Financial Crisis……………………………………………………………………………
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Question 1 Mark Sexton and Todd Story‚ the owners of S&S Air‚ have decided to expand their operations. They instructed their newly hired financial analyst‚ Chris Guthrie‚ to enlist an underwriter to help sell $35 million in new 10-year bonds to finance construction. Chris has entered into discussion with Kim McKenzie‚ an underwriter from the firm of Raines and Warren‚ about which bond features S&S Air should consider and what coupon rate the issue will likely have. Although Chris is aware of
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William M. Grissett November 21‚ 2012 Module 1 Case Assignment IPO Lessons FIN501 Dr. V. Vallillee What type of IPO should AVG use - a traditional IPO or an online auction? Based on your analysis and findings‚ what would you recommend to the executives of AVG? Based on research I believe that AVG should utilize the online or Dutch auction‚ where investors bid on an initial public offering before it goes public. The benefits are clear. In theory‚ a fair market price is set and the company reaps
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Chapter 7 Discussion Questions: 1. The primary concern should be for safety and liquidity rather than maximization of profit because they help meet the necessities of the firm when it comes to the firm’s transactions. This money must be available when it is needed. 2. Lockbox systems and regional collection offices both make the process of checks coming from a far location faster. The difference between the two is that lockbox systems only require the use of a post office box and a local
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The following appeared in a letter to the editor of the Balmer Island Gazette. "On Balmer Island‚ where mopeds serve as a popular form of transportation‚ the population increases to 100‚000 during the summer months. To reduce the number of accidents involving mopeds and pedestrians‚ the town council of Balmer Island should limit the number of mopeds rented by the island’s moped rental companies from 50 per day to 25 per day during the summer season. By limiting the number of rentals‚ the town council
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