1 Introduction and corporate governance P R E PA R E D A N D U P D AT E D B Y H O A N G U Y E N F O R T H E U N I T T E A M Contents Introduction 1 Objectives 1 Topic overview 1. Goals and governance of the firm 2. Present value and its link to the objectives of the firm 3. An overview of corporate financing 2 2 3 4 Learning resources Textbook Deakin Studies Online (DSO) 4 4 4 © Deakin University C O R P O R AT E F I N A N C E TO P IC 1 Introduction
Premium Corporate finance Net present value Option
Chapter 10 Question 1 Marks: 1 Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC)? Choose one answer. | a. Long-term debt. | | | b. Accounts payable. | | | c. Retained earnings. | | | d. Common stock. | | | e. Preferred stock. | | Correct Marks for this submission: 1/1. Question 2 Marks: 1 For a typical firm‚ which of the following sequences is CORRECT? All rates are after taxes‚ and assume the firm operates at its
Premium Net present value Internal rate of return Cash flow
or procedures‚ designed to guide an investor ’s selection of an investment portfolio. Usually the strategy will be designed around the investor ’s risk-return tradeoff: some investors will prefer to maximize expected returns by investing in risky assets‚ others will prefer to minimize risk‚ but most will select a strategy somewhere in between. Passive strategies are often used to minimize transaction costs‚ and active strategies such as market timing are an attempt to maximize returns. In the week
Premium Net present value Investment Corporate finance
Chartered Financial Analyst® CFA® 2011 CFA Level 1 Sample Exam Questions and Answers • 2011 CFA Level 1 Sample Exam Version 1-2 2011 CFA Level 1 Sample Exam 2011 Level 1 Sample Exam Volume 1 SS1 -Ethics and Professional Standards 1. Abasi Hasina‚ CFA‚ signed an employment contract with a non-compete clause restricting him from working for a competitor for three years after leaving the employer‚ an investment bank. After one year‚ Hsaina. quits his job for a position with an investment
Premium Cash flow Balance sheet Margin
Chapter 4 MARKET AND DEMAND ANALYSIS 1. We have to estimate the parameters a and b in the linear relationship Yt = a + bT Using the least squares method. According to the least squares method the parameters are: ∑ T Y – n T Y b = ∑ T 2 – n T 2 a = Y – bT The parameters are calculated below: Calculation in the Least Squares Method T Y TY T 2 1 2‚000 2‚000 1 2 2‚200 4‚400 4 3 2‚100 6‚300 9 4 2‚300 9‚200 16 5 2‚500 12‚500 25 6 3‚200 19‚200 36 7 3‚600 25
Premium Net present value Cash flow
decision‚ namely the influence that it has on inflation. Thus‚ in a brief introduction spotlighted how we have perceived inflation today‚ what it means and how it manifests itself. An ample space in the paper is dedicated manner of determining the net present value in the presence of inflation‚ with an emphasis on the link between the real interest rate‚ the nominal interest rate and the inflation rate. To be convincing in our approach we introduced in the last part of the paper a case study in which we
Premium Inflation Net present value
following statements regarding limited partnerships is true A) There is no limit on a limited partners liability. B) A limited partners liability is limited by the amount of their investment. C) A limited partner is not liable until all the assets of the general partners have been exhausted. D) A general partners liability is limited by the amount of their investment. Answer B 7) Which of the following is / are an advantage of incorporation A) Access to capital
Premium Time value of money Balance sheet Cash flow
paid minus the market value of the acquisition prior to the merger. The premium depends on whether cash or securities are used to finance the offer price (Ross. 2005. Chapter 29‚ page 795). Shareholders in organizations like to invest in projects that are worth more than they cost. "In capital budgeting‚ the profitability index measures the bang (the dollar return) for the buck invested. Therefore‚ it is useful for capital rationing (Ross 2005). The investment in net
Premium Net present value Investment Capital budgeting
Financial Management Subject Number 18 Study Pack Strathmore University Distance Learning Centre P.O. Box 59857‚ 00200‚ Nairobi‚ Kenya. Tel: +254 (02) 606155 Fax: +254 (02) 607498 Email dlc@strathmore.edu Copyright ALL RIGHTS RESERVED. No part of this publication may be reproduced‚ stored in a retrieval system or transmitted in any form or by any means‚ electronic‚ mechanical
Premium Net present value Internal rate of return Finance
AVEVA NET Woodside post implementation review August 2009 Contents 1. Executive summary 2. Background 2.1 The Woodside implementation 3. Methodology 3.1 Method 3.2 Assumptions 4. Cost benefit analysis 4.1 Introduction 4.2 Benefits 4.3 Costs 5. Return on investment 5.1 Key findings 5.2 Internal rate of return 5.3 Payback period 5.4 Costs versus benefits 5.5 ROI sensitivity 5.6 Qualitative and intangible benefits 5.7 Future opportunities 6. Conclusion 7. Appendix 7.1 AVEVA background 7.2
Premium Net present value Cost-benefit analysis Costs