“INTRODUCTION TO CORPORATE FINANCE” “Where is This Slide From”? • Most of the slides we use in this unit are provided by the Publisher of the required text “…as down-loaded from Connect…” • Sometimes we modify slides by adding or removing content. Other times we use slides from other sources. Occasionally we ‘make’ slides. • Note that lecture slides are not numbered sequentially. • Slides are identified in the lower RHS corner. • Identifier “1-3” refers to text chapter 1 slide 3. •
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CASE STUDY HOMEWORK CORPORATE FINANCE PROFESSOR: G. BERTINETTI STUDENT Albert Maurer 1 The Situation: In 2010 a new company was created in order to enter into the food industry. They spent many months in studying the market‚ engineering the products and the commercial strategy‚ find out the production plants. At the end of 2010 the business plan is ready and the company has already participated to an exhibition where many potential customers said to be very interested to the project
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above which an investment makes sense and below which it does not. Often‚ this is based on the firm’s cost of capital or weighted average cost of capital‚ plus or minus a risk premium to reflect the project’s specific risk characteristics. 2) ‘Non-Discounting’ Methods: Payback period: The period required to recover the original investment in a project. The payback is based on cash flows and we may accept the project if its payback period is less than some preset limit. Accounting
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Q: Introduction: Larissa has been talking with the company’s directors about the future of East Coast Yachts. To this point‚ the company has used outside suppliers for various key components of the company’s yachts‚ including engines. Larissa has decided that East Coast Yachts should consider the purchase of an engine manufacturer to allow East Coast Yachts to better integrate its supply chain and get more control over engine features. After investigating several possible companies‚ Larissa feels
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CASE STUDY ON CASH BUDGETING Party Favours Limited (PFL) distributes party supplies and novelties through a network of independent‚ dedicated sales people across Canada. PFL plans to expand its network of sales distribution network into western Canada and consequently forecasts sales to total $5.6 million and $5.8 million in calendar years 2011 and 2012 respectively. PFL has been in operation for over ten years‚ and therefore has a strong understanding of the seasonal sales cycle that party
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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 26231 26755 Variable cost 13200 13926
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Chapter 10 The Cost of Capital LEARNING OBJECTIVES After reading this chapter‚ students should be able to: • Explain what is meant by a firm’s weighted average cost of capital. • Define and calculate the component costs of debt and preferred stock. • Explain why retained earnings are not free and use three approaches to estimate the component cost of retained earnings. • Briefly explain why the cost of new equity is higher than the cost of retained earnings‚ calculate the
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MAF302 Corporate Finance Study Guide Important Instruction This study guide provides you of an overview for each of the topic taught in this unit. These overviews however are not sufficient to learn all the materials in each of the topic. I therefore would suggest you to follow the materials in lecture notes and workshops. It is also essential to read and consult the corresponding text book chapters to develop your concept and knowledge in this unit. You will also find some references
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Download Ebook Corporate Finance 9th Edition Mini Case Solutions PDF at Online Ebook Library CORPORATE FINANCE 9TH EDITION MINI CASE SOLUTIONS PDF Download: CORPORATE FINANCE 9TH EDITION MINI CASE SOLUTIONS PDF Are you seeking Ebook CORPORATE FINANCE 9TH EDITION MINI CASE SOLUTIONS PDF?. Acquiring Ebook Corporate Finance 9th Edition Mini Case Solutions PDF is easy as well as easy. Mostly you have to spend much time to browse on search engine and also does not get Ebook Corporate Finance 9th Edition
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CORPORATE FINANCE Formative Assessment Some reading: Adams‚ R. B.‚ Hermalin‚ B. E.‚ and Weisbach M. S. (2010) The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey‚ Journal of Economic Literature‚ Vol 48‚ No.1‚ pp. 58–107. Aggarwal‚ R. et al (2009) Differences in governance practices between US and foreign firms: measurement‚ causes and consequences‚ Review of Financial Studies‚ Vol. Bhagat‚ S.‚ and Bolton B. (2008) Corporate Governance and Firm
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