Business Consultancy International BBCi 2009 WS 2009/10 Final Examination Principles of Corporate Finance I Dr. Kinga Niemczak 14.12.2010 Name: ___________________________ Student No.: ______________________ 1. a. Calculate the value of a 4.65% five-year €1‚000 bond‚ if you know that the bond is rated AAA and the typical YTM for such bonds is 6.25%. (6 points) b. How will the value of this bond change (in %) if yield increases
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THE PRINCIPLES OF CORPORATE FINANCE CHAPTER 1: The time value of money We are going to link the present and the future by using the notion of interest rate that could be called discount rate‚ required rate of return or cost of capital. Finance is all about cash flows but more precisely about the exact date of the realization of the cash flow. I) PRESENT VALUE Example 1: What is the value today of $110 to be received in one year? - suppose the interest rate ‚ r =10%
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provide a framework for understanding the determinants of corporate investment‚ financing‚ hedging‚ payout‚ and executive compensation policies. The course will provide an analysis of the determinants of each policy as well as the implications for shareholder value. While the basic economic insights will be presented through simple examples‚ the course is quantitative in nature. Course material The reference textbook is Corporate Finance by Jonathan Berk and Peter DeMarzo‚ Pearson International
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BBMF2093 CORPORATE FINANCE DEGREE IN BUSINESS STUDIES (Finance and Investment) ACADEMIC YEAR 2013/14 COURSEWORK Submitted by: Caleb Chan Yeung Zen 13WBR11358 Chin Yong Hao 13WBR11575 Chuah Zheng Hong 13WBR10041 Leong Wai Hong 13WBR11033 TUTOR: AP Dr. Wong Pik Har TUTORIAL GROUP: 2 RFI 4 TITLE: YTL Power Financing Analyst DATE OF SUBMISSION: 4th July 2014 Plagiarism Statement Read‚ complete and sign this statement to be submitted with your written work. We confirm that the submitted
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IMBA -FIN 6425 – Quiz 1 Corporate Finance - Solution– Nimalendran This is an individual quiz and you should submit the answers on-line by the scheduled date. You are allowed to use any resources EXCEPT help from any other person. You are allowed to use EXCEL for the calculations. 1. Barkley Credit Union sets a low annual percentage rate (5%) for all its credit card customers instead of basing the interest rates on the customers’ credit scores. Consequently Barkley is exposed to ______________
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International Corporate Finance 1. How are percentage changes in a currency’s value measured? Illustrate your answer numerically by assuming a change in the Thai baht’s value from a value of $0.022 to $0.026. Answer: Percent △ in foreign currency value = st-st-1 st-1 = $0.026-$0.022$0.022 ≈ 18.18% 2. What are the basic factors that determine the value of a currency? In equilibrium‚ what is the relationship between these factors? Answer: The basic factors that determine the value
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Assignment of corporate finance If we need to find Z score of Fu-Wang ceramic industry ltd. Then at first we should know the formula of Z score. The formula of Z score is Z = 3.3(EBIT/Total Assets) + 1.2(Net Working Capital/Total Assets) + 1.0(Sales/Total Assets) + .6(Market Value of Equity/Book Value of Debt) + 1.4(Accumulated retained earnings/Total Assets) Now we are going to determining the Z score of Fu-Wang ceramic industry ltd. In the year of 2010 As we know the formula of Z score below
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Overview of Relevant Formulas Corporate Finance (B40.2302) _________________________________________________________________________________________ 1. Present value of $1 to be received after t years at discount rate r: 2. Present value of annuity of $1 per year for t years at discount rate r: $1 (1 + r )t ⎡1 − (1 + r ) − t ⎤ ⎢ ⎥ × $1 r ⎣ ⎦ 1 ⎡ (1 + g )t ⎤ 3. Present value of growing annuity of $1 at rate g per year at discount rate r: ⎢1 − ⎥ × $1 r − g ⎣ (1 + r )t ⎦ $1 r 4. Present value
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Chapter 2 -CAPM: how risk affects return -Expected Return (on investment): mean value of its probability distribution of returns; greater the probability return will be below expected‚ greater the stand-alone risk -Risk Averse: he/she must be compensated for holding risky assets -Asset has 2 risk types: Diversifiable risk can be eliminated by diversification; market risk cannot be eliminated -Market risk measured by standard deviation of returns on portfolio consisting of all stocks -Relevant
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[pic] School of Management Studies Finance Advanced Topics [BUS4083W] Corporate Finance Test 23 September 2010 Time Allocation: 120 minutes Total Mark Allocation: 90 marks Case Study: Anglo American On the 20th of February 2009‚ Anglo American announced that it would cut 11% of its work force and suspend its share buyback and dividend in the face of a poor economic outlook marked by "unprecedented" uncertainty. The miner said it was reducing its headcount by
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