Foundations of Finance: Overview Prof. Alex Shapiro Lecture Notes 1: Overview This lecture introduces much of the terminology we will use in the course‚ and we will describe it in more detail later. For now‚ to set the stage‚ we will review it very briefly in class‚ but make sure to get the supplemental details from the textbook. I. Readings II. Asset Classes III. Characteristics of an Asset IV. The Financial System V. Financial Markets VI. Financial Intermediaries VII
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INTRODUCTION Companies need to choose from among various sources of finance depending on the amount of capital required and the term for which it is needed. Finance sources can be divided into three categories‚ namely traditional sources‚ ownership capital and non-ownership capital. Traditional sources are the internally generated capital (retained earnings); ownership capital is the capital owned by shareholders of the company (ordinary shares) while non-ownership capital includes funds from lenders
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Apex Financial Valuations By: Melvin Davis Applied Managerial Finance Phase 3 discussion board Dr. Bilal Makkawi April 24‚ 2013 Abstract After meeting with the CEO and the VP of the company I have been assigned the task to explain and define certain material for the company as the Vice President of finance. In order for everyone to have knowledge of what is about to take place in the upcoming weeks I will be defining and explaining some very vital information on Net Present Value (NPV)
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References: Argersinger‚ M. (2011)‚ How Companies Fake It (With Cash Flow)‚ Daily Finance. [Online] Available from http://www.dailyfinance.com/2011/07/27/how-companies-fake-it-with-cash-flow/ (Accessed on 12/12/2014) Bajpai‚ P (2014)‚ Goodwill vs Other Intangible Assets: What ’s the Difference? ‚ Investopedia.[online] Available from http://www.investopedia.com/articles/investing/100614/goodwill-vs-other-intangible-assets-whats-difference.asp (Accessed on 18/12/2012) Banerjee‚B.K
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which readily available funds can pay off current liabilities. For 2011= 1.56 and for 2010= 1.08. The ratio increased significantly and it is so high which means that the company is holding too much cash and not investing it‚ which means it is losing a profit that can be gained from investing it. Leverage : Leverage 2011 2010 | Total Debt Ratio | 0.5 | 0.417 | Debt Equity Ratio | 1 | 0.716 | Equity Multiplier | 2 | 1.716 | Time
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FINANCE: TUTORIAL 2 (Suggested Solutions) 1. Liquidity measures how quickly and easily an asset can be converted to cash without significant loss in value. It’s desirable for firms to have high liquidity so that they can more safely meet short-term creditor demands. However‚ liquidity also has an opportunity cost. Firms generally reap higher returns by investing in illiquid‚ productive assets. It’s up to the firm’s financial management staff to find a reasonable compromise between these opposing
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Euntrepreneurial Finance Lecture 1: Ventures: ( new projects/ ideas that make it extremely difficult to attract financing since it’s a new product by eutreprenures with no data and history to back up that they will return or make profit or even successfully launch the product) It is an alternative asset! Lack of tangible assets‚ expecting negative earnings and have uncertain prospects. Traditional assets: publically traded shares‚ bonds‚ foreign exchanges‚ commodities‚ real estate.
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CORPORATE FINANCE Master in Banking and Finance 2012 FINAL EXAM A. PROBLEMS (20 points each problem) 1. FAGE Manufacturing is currently an all-equity firm with 20 million shares outstanding and a stock price of $7.50 per share. Although investors currently expect FAGE to remain an all-equity firm‚ the company plans to announce that it will borrow $50 million and use the funds to repurchase shares. FAGE will pay interest only on this debt‚ and it has no further plans to increase or decrease
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Poland’s politics changed and Gerber faced threats from the new government that they would unable to deliver the promises made previously on October. Although most conditions of the deal were attractive to Gerber‚ it must reevaluate the merits of investing in Poland under such an uncertain situation. II. BACKGROUND 1. Gerber Products Company Founded in 1928‚ Gerber was located in a small town of Fremont‚ Michigan. It has a large variety of jarred baby foods with about 165 products. Besides‚ the
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finance for manager Table of content Q1: Sustainability of Debt Finance Management Introduction…………………………………………………………………………………………….3 1.1 Literature review…………………………………………………………………………………..3 1.2 Assumption and argument for this debt financing findings from ICAEW……………………5 1.3 Financial ratio analysis for the debt financing situation of the chosen listed company……6 1.3.1 Debt financing performance………………………………………………………………6 1.3.2 Operation performance……………………………………………………………………8 1.3.3 Systematic
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