an entirely new firm is created and both the acquired and acquiring firms cease to exist is called a: a. divestiture. B. consolidation. c. tender offer. d. spinoff. e. conglomeration. SECTION: 25.1 TOPIC: CONSOLIDATION TYPE: DEFINITIONS 3. A public offer by one firm to directly buy the shares of another firm is called a: a. merger. b. consolidation. C. tender offer. d. spinoff. e. divestiture. SECTION: 25.1 TOPIC: TENDER OFFER TYPE: DEFINITIONS www.sudanpoint.com/mba 25-1
Premium Mergers and acquisitions Corporate finance Stock
Tri Vi Dang Email: td2332@columbia.edu Columbia University Spring 2013 Corporate Finance (ECON W4280) Meeting time: Tu‚ Th 4.10-5.25 Meeting place: Hamilton 503 Office address: IAB 1032 Office hours: Th 11.00-12.00 and other times by appointment Course Description The aim of this introductory course in corporate finance is to provide students with fundamental concepts for understanding firms’ financing decisions and the basic tools for the valuation of a corporation. This course
Premium Corporate finance
CASE STUDY ON CASH BUDGETING Party Favours Limited (PFL) distributes party supplies and novelties through a network of independent‚ dedicated sales people across Canada. PFL plans to expand its network of sales distribution network into western Canada and consequently forecasts sales to total $5.6 million and $5.8 million in calendar years 2011 and 2012 respectively. PFL has been in operation for over ten years‚ and therefore has a strong understanding of the seasonal sales cycle that party
Premium Operating expense Expense Capital expenditure
determine rE suggests that RV’s equity risk is the same as that of the industry. The variation in business risk between RV and its industry competitors thus stems from the introduction of debt into the capital structure. Year Forecast 1 2 3 4 5 6 Sales 22000 23210 24487 25344 26231 26755 Variable cost 13200 13926
Premium Free cash flow Discounted cash flow Cash flow
on cash flows and we may accept the project if its payback period is less than some preset limit. Accounting rate of return (ARR) can be defined as follows: ARR =[pic]; the project is accepted if the AAR is greater than the preset rate. 3) Others: Sensitivity analysis‚ earnings multiple approach‚ real options approach‚ value at risk‚ and adjusted present value methods. Question 2 (2 marks) When evaluating a potential investment opportunity‚ the NPV is a preferred method because of
Premium Net present value Internal rate of return Cash flow
10‚ I/YR = 8‚ PMT = 50‚ FV = 1‚000) = $798.70 Instructor Explanation: Answer is: d Chapters 23 and 24 Inputs to find the straight-debt value: N = 10; I/YR = 8; PMT = 50; FV = 1‚000. $798.70 Points Received: 10 of 10 Comments: Question 3. Question : (TCO B) Vu Enterprises expects to have the following data during the coming year. What is Vu’s expected ROE? Assets $200‚000 Interest rate 8% D/A 65% Tax rate 40% EBIT $25‚000 (a) 12.51% (b)
Premium Option Stock Call option
“INTRODUCTION TO CORPORATE FINANCE” “Where is This Slide From”? • Most of the slides we use in this unit are provided by the Publisher of the required text “…as down-loaded from Connect…” • Sometimes we modify slides by adding or removing content. Other times we use slides from other sources. Occasionally we ‘make’ slides. • Note that lecture slides are not numbered sequentially. • Slides are identified in the lower RHS corner. • Identifier “1-3” refers to text chapter 1 slide 3. • Identifiers
Premium Generally Accepted Accounting Principles Corporate finance Balance sheet
The Handbook of News Analytics \ in Finance Edited by Gautam Mitra and Leela Mitra WILEY A John Wiley and Sons‚ Ltd‚ Publication Contents Preface xiii Acknowledgements xvii About the editors xix About the contributors xxi Abbreviations and acronyms xxv 1 Applications of news analytics in finance: A review Leela Mitra and Gautam Mitra 1.1 Introduction 1.2 News data ’ 1.2.1 Data sources 1.2.2 Pre-analysis’of news data 1.3 Turning qualitative text into quantified metrics and time-series
Premium Risk Stock market Data analysis
CORPORATE FINANCE Formative Assessment Some reading: Adams‚ R. B.‚ Hermalin‚ B. E.‚ and Weisbach M. S. (2010) The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey‚ Journal of Economic Literature‚ Vol 48‚ No.1‚ pp. 58–107. Aggarwal‚ R. et al (2009) Differences in governance practices between US and foreign firms: measurement‚ causes and consequences‚ Review of Financial Studies‚ Vol. Bhagat‚ S.‚ and Bolton B. (2008) Corporate Governance and Firm
Premium Corporate governance Economics Management
a. Why is corporate finance important to all managers? Corporate finance is important to all mangers because it lets them know the company’s financial situation before any decisions can be made within the organization. It helps managers develop strategic financial issues associated with achieving goals. Having a solid understanding of corporate finance helps mangers find ways to raise and manage its capital‚ which type of investments the firm should make‚ if profits are earned‚ how these profits
Premium Tax Progressive tax Corporate tax