BMCF 5103 CORPORATE FINANCE Dr. Nguyen Thi Hoang Anh Lecture 1: An Introduction to Corporate Finance Contents What is finance? What is corporate finance? The balance-sheet model of the firm Capital budgeting Capitalstructure The firm and thefinancial markets Forms of business organisation The goals of a corporation Agency relationships: stockholders versusmanagers‚ stockholders versus creditors Managers’ actions to maximise stockholder wealth Financial management
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References: Boss‚ R. (2002). Automated Storage/Retrieval and Return/Sorting Systems. http://www.pla.org/ala/pla/plapubs/technotes/asrsystems.cfm. Retrieved May‚ 2007. Zollinger‚ H. (2001). AS/RS Application‚ benefits and Justification in Comparison to Other Storage Methods. http://www.mhia.org/PSC/pdf/asrswhitepaper2
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SAP for ATLAM MAF 680 INTEGRATED CASE STUDY EXECUTIVE SUMMARY ATLAM is the maritime industry’s diverse workforces establish on 15TH August 1981 and become private on 1st January 1997. ATLAM is a subsidiary of Petra Group Companies. Before 2001‚ ATLAM relied on a customised single-user system which only for recording accounting entries purposes and facing deficit cash flow. End of year 2001‚ Zulkifli Osman‚ Finance Manager of ATLAM has been responsible to organize new project on accounting
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in the factory‚ no additional fixed costs would be incurred if this proposal is accepted. It is expected that cans would cost 50¢ each if purchased from the current supplier. The company’s minimum rate of return (hurdle rate) has been determined to be 10% for all new projects‚ and the current tax rate of 35% is anticipated to remain unchanged. The pricing for a gallon of paint as well as number of units sold will not be affected by this decision. The unit-of-production depreciation method would be
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Caledonia Products As a new intern for Caledonia Products‚ my CEO‚ Mr. V. Morrison has given me one of my first unsupervised assignments will be to provide the company with a financial analyst‚ that will include providing the calculations of cash flows associated with a new investment that the company is considering investing in. As I am an intern‚ I have not been asked to provide a recommendation just an analyst. (Keown Martin‚ Petty 11) Reviewing the information provided‚ Caledonia
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riskiness of the cash flows. Next‚ determine the appropriate discount rate‚ based on the riskiness of the cash flows and the general level of interest rates. This is called project’s required rate of return or cost of capital in capital budgeting. Then‚ find the PV of expected cash flows and the asset’s rate of return. If the PV of the inflows is greater than PV of outflows (NPV is positive)‚ or if the calculated rate of return (IRR) is higher than the project cost of capital‚ accept the project.
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(real) discount rate. (15 marks) 3. Briefly explain two methods of comparing projects with different useful lives. (10 marks) 4. a) Whizzo Ltd is considering 3 independent projects which are expected to last 10 years each and generate the following net present values and internal rates of return: Project X Project Y Project Z Net Present Value $2‚000‚000 -$600‚000 $1‚500‚000 Internal Rate of Return 25.0% 12.0% 20.0% The firm uses a discount rate of 15% to evaluate
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References: Internal Rate of Return. (2011). In Investor Words. Retrieved from http://www.investorwords.com/2564/Internal_Rate_of_Return.html. Net Present Value. (2011). In Investor Words. Retrieved from http://www.investorwords.com/3257/Net_Present_Value.html. QFinance
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Case Our company has $250‚000 to spend on acquiring either Corporation A or Corporation B. In determining which Corporation would be the better buy we will look at the Net Present Value (year 1 through 5) of both Corporations‚ determine the Internal Rate of Return‚ and conduct an analysis of the information gathered. Net Present Value (NPV) Net Present Value (NPV) is the sum of income and outgoing cash flows based on the present value of the same entity. If the net present value of the investment
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Report on Capital Budgeting Abstract This report deals with • The nature of capital investment appraisal • The techniques available for evaluating capital investments • The limitations of these techniques • The capital budgeting practices in select countries Introduction: Some of the major responsibilities of top management are in the area of long range planning. Allocating resources to competing uses is one of the most important decisions a manager has to make. Executives are constantly
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