U NIVERSITY OF L UXEMBOURG ‚ L UXEMBOURG S CHOOL OF F INANCE Corporate Finance Master in Economics and Finance 2nd Assignment - Stock valuation + Cost of capital Due on 10/3/2014 E XERCISE 1 Starr Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year‚ indefinitely. If investors require a 12 percent return on the stock‚ what is the current price? What will the price be in three years? In 15 years? E XERCISE
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FINS1613 Business Finance Semester 2 – 2009 Version 1.0.3 Contents Page 3 Page 7 Page 10 Page 14 Page 18 Page 23 Page 26 Page 29 Page 32 Page 38 Page 42 Basic Concepts Introduction to Financial Mathematics The Valuation of a Firm’s Securities Capital Budgeting Capital Budgeting Applications – Part 1 Capital Budgeting Applications – Part 2 Risk and Return The Capital Asset Pricing Model Cost of Capital and Raising Capital Capital Structure Dividend Policy Copyright © Ka Hei Yeh 2009 First
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Mini Cases in Movement Disorders Mona Dalzon Case 1 Kenny Kenny is a teenager who has experienced uncontrollable bodily and facial movements‚ various uncontrolled vocalizations‚ and other compulsions such as excessive hand washing and wringing. He has been treated with Clonidine‚ Haldol‚ pimozide and buspirone. This patient was diagnosed with Tourette’s Syndrome. Clonidine is a vasodilator that allows for blood to flow more easily to the brain. This lowers blood pressure and helps treat the tics
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Problem set 2 16-1. Gladstone Corporation is about to launch a new product. Depending on the success of the new product‚ Gladstone may have one of four values next year: $150 million‚ $135 million‚ $95 million‚ and $80 million. These outcomes are all equally likely‚ and this risk is diversifiable. Gladstone will not make any payouts to investors during the year. Suppose the risk-free interest rate is 5% and assume perfect capital markets. a. What is the initial value of Gladstone’s equity
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ADM 3350 M Winter 2010 CORPORATE FINANCE MIDTERM EXAMINATION – February 10th‚ 2010 Professor: Kaouthar LAJILI‚ PhD.‚ CGA Duration: 1 hour and 30 minutes Part I 15 Part II 35 TOTAL 50 NAME: __________________________________________ STUDENT #: ________________________ PART I: Multiple Choice Questions (15 points) Please circle the correct answer 1. In an EPS-EBI graphical relationship‚ the slope of
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Corporate Finance Revision List Topic | Study Program | The Realm of Corporate Finance and Efficient Market Hypothesis | * Overview of finance’s main functions & its importance to organisations. * Importance of value creation as the primary objective of managers * Efficient Market Hypothesis (EMH) | Financial Statement Analysis | * Overview of calculating & interpreting accounting & financial ratios from corporate financial statements & understanding their significance in corporate
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GOODWAY (CORPORATE FINANCE) I. INTRODUCTION I.I. Company History Goodway Rubber Industries Sdn Bhd (“GWRI”) commenced its operation in Sabah in 1990. In 2003‚ Goodway Integrated Industries Berhad (“GIIB”) was established as an investment holding company of GWRI and all its subsidiaries. GIIB was listed on the Second Board of Bursa Malaysia Securities Berhad in 2004 and currently listed on the Main Board. The Company operations located at Nilai‚ Negeri Sembilan. Goodway has manufacturing
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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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Entrepreneurial Finance Philippe Gregoire Louvain School of Management – Université catholique de Louvain Reference book : Entrepreneurial finance‚ a casebook. Paul A. Gompers and William A. Sahlman. John Wiley & Sons‚ Inc. 2002 1 Entrepreneurial finance Project assessment (POCD) Funding (amount‚ firm’s value‚ best partner) Deal (ownership / control / incentives) Exit (IPO) Project Assessment • 4 critical success factors for entrepreneurial ventures People Opportunity
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