Table of Content 1. Executive summary iv 2. Introduction 2 3. Repricing Model 2 I) Refunding or funding gap 3 II) Advantage/Disadvantage 4-5 4. Maturity Model 6-10 5. Weakness of maturity model 11 6. Duration Model 12-15 7. Limitation of Duration model 15 8. Case Study –Brac Bank Ltd 16-20 INTRODUCTION: Interest Rate Risk - In the process of FIs performing their asset-transformation
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Graduate School of Business Administration University of Virginia UVA-F-1238 Duration and Convexity The price of a bond is a function of the promised payments and the market required rate of return. Since the promised payments are fixed‚ bond prices change in response to changes in the market determined required rate of return. For investor’s who hold bonds‚ the issue of how sensitive a bond’s price is to changes in the required rate of return is important. There are four measures of bond
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Prior to the IPO‚ the market perceived the valuation with positive approval signaled by both Facebook’s private market share auctions and analyst’s reviews. However‚ as it will be examined below‚ Facebook has been significantly over-valued by the underwriters. In addition‚ the market changed its opinion of Facebook shortly after the IPO‚ criticizing the valuation of the company was too high. The differences in market reaction showcase shortfalls in valuation‚ and it is recommended that analysts and
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Valuation of Mergers and Acquisitions SUBMITTED BY: DEBAYAN MUKHERJI PGDM ’"2008-2010 ROLL NO: 08PGDM083 INTERNATIONAL MANAGEMENT INSTITUTE‚ NEW DELHI CONTACT NUMBER: 09717443910 EMAIL : debayan.p08@imi.edu Valuation of Mergers and Acquisitions Mergers and acquisitions (more generally‚ takeovers) are an important means through which companies achieve economies of scale‚ face the competition‚ or respond to economic shocks. For example ‚how the $54 billion US chemical major
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Valuation project report Valuation of the Incentive Stock Options for Procter & Gamble Co. Name: Haining Jiang Company background: In this valuation project‚ I will analyze a company which is mature and I am interested in. The name of the company is Procter & Gamble Co. the Procter & Gamble Company‚ together with its subsidiaries‚ engages in the manufacture and sale of a range of branded consumer packaged goods. The company operates in five segments: Beauty‚ Grooming‚ Health
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Case 18 Gilda Sears Finance 650: Investments Date: July 22‚ 2010 Table of Contents Summary of Facts 3 Problems 3 Analysis and Solution 4 I. Boston Edison and American Brand 4 II. AT&T and Baltimore Gas and Electric 4 III. Largest potential capital gain 4 Annexures 5 Summary of Facts Gilda Sears who is enrolled in an Investments class has picked a project on bond price theorems. The two main theorems that she decided to illustrate dealt with coupon rate and term-to-maturity
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Fernández. IESE Business School Company valuation methods. The most common errors in valuations Company valuation methods. The most common errors in valuations∗ Pablo Fernández PricewaterhouseCoopers Professor of Corporate Finance IESE Business School Camino del Cerro del Aguila 3. Telephone 34-91-357 08 09. 28023 Madrid‚ Spain e-mail: fernandezpa@iese.edu In this paper‚ we describe the four main groups comprising the most widely used company valuation methods: balance sheet-based methods‚ income
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Company Background Square Pharmaceuticals Limited has been a household name in Bangladesh since 1958 when it started its operations as a partnership‚ getting incorporated in 1964 and finally getting listed at the stock exchange in 1995. The company has been in the leading front of innovation‚ and continues to introduce new and better medicines in the market every year. Today the 97% of the demands for medicine in the domestic market is catered to by the local pharmaceuticals company and Square
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Chose the residual earning models: Firstly‚ the firm’s profitability‚ it was showed on the return on equity‚ and it can show that how well the managers did in the past year. Secondly‚ the growth of investment‚ in this case‚ the valuation can be more informative if it showed the public and investors that how the company is expected to grow in the future. Thirdly‚ the accrual concept‚ that is about the cash flow. Last but not least‚ items accounting variables in financial
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This paper received a 144 out of 160 as a grade. Competitive Strategies: Ducati vs. Harley Davidson BUS 508 Contemporary Business November 5‚ 2013 Determine how each corporate culture differs from the other. Ducati is Italian through and through‚ and Harley Davidson is American made Muscle. While both are very popular brand name motorcycles‚ they differ in many ways while still having huge followings. Though the two may differ in their customer base‚ it is certainly agreed that they are
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