CHAPTER 6 INTEREST RATES AND BOND VALUATION L E A R N I N G LG1 Describe interest rate fundamentals‚ the term structure of interest rates‚ and risk premiums. LG2 Review the legal aspects of bond financing and bond cost. LG3 LG4 Discuss the general features‚ quotations‚ ratings‚ popular types‚ and international issues of corporate bonds. LG5 LG6 G O A L S Apply the basic valuation model to bonds and describe the impact of required return and time to maturity
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AFC 3230 – Financial Analysis and Valuation Lecture 1 – Introduction (6 marks – Theory) Investment Styles: Intuitive Investing * Investor who relies on intuition and hunches – there is no analysis involved Problems: * Self-deception‚ ignores ability to check intuition Passive Investing * Investor who accepts the market price as value – there is no analysis involved – this is the “efficient market approach” Problems: * It is risky that you may be paying too much for
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------------------------------------------------- MEMORANDUM To: Ana Bellario‚ Director of Market Strategy for Eurotel From: xxx Date: October 14‚ 2012 Subject: Regression Model for 3G License Valuation Estimation ------------------------------------------------- Background As part of the European expansion plan‚ Eurotel is planning to bid on 3G licenses in Hungary‚ Russia and Turkey. Usually‚ the operator determines the maximum price to bid following three steps: 1. NPV analysis
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Case study—JetBlue airways IPO valuation Introduction: As a leader of airways industries‚ JetBlue is successful because of professional services and a good management team. In 2002‚ JetBlue became a public company. Despite the fact that US airline industry had witness 87 new airline failures over the previous 20 years‚ Jetblue overcame difficulties and expressed confidence in the bright future. Before going public Before going public in 2002‚ JetBlue has outstanding advantage in the whole
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[pic] RESEARCH PAPER VALUATION OF THE YAMAMA SAUDI CEMENT COMPANY (YSCC) Table of Contents 1. Introduction ……………………………………………………………………… 3-4 2. The Saudi Cement Industry …………………………………………………….. 4-5 3. The Yamama Saudi Cement Company…………….…………………………... 6 4. Company Valuation ……………………………………………………………... 7-11 4.1. The Free Cash Flow Model (FCF) ………………………………………... 7 4.2. The Dividend Discount Model (DDM) ……………………………………
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Assignment 2: Cabo San Viejo by Stefan S****t and others Course: Customer Relationship Management Faculty: Erasmus School of Economics Content 1. Cabo San Viejo’s customer base 3 1.1 General information 3 1.2 The ageing of the customer database 3 1.3 Customers are becoming more heterogeneous 3 1.4 Lack of cross-selling 3 1.5 Complaints and the lack of a loyalty program 4 1.6 Conclusion 4 2. Rewards program 4 2.1 Stimulating retention 4
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Case Analysis Saku Problem Synopsis of the Situation Saku offers products in six different product categories. Some of their products are doing well while sales of some products are declining. Certain segments are experiencing market growth while some others are close to stagnation. The company wants to determine a product portfolio for the next few years that will take advantage of opportunities for expansion without negatively impacting the current sales of its products. Key Issues
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Advanced Financial Management – Professor Dahiya 09/12/10 Case 1 We feel that General Foods Corporation ought to go ahead with the Super Project. While we feel the incremental costs approach lacks a certain degree of sufficiency in taking into account all overhead‚ we believe the $453‚000 cost of using the existing Jell-O facilities would have already been accounted for on the Jell-O balance sheet and thus is a non-factor in determining the profitability of the Super Project. Simply adding the
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Case Assignment 3 Affinity Plus (A) Table of contents Introduction 2 The benefits of “employee latitude” 2 The disadvantages of “employee latitude” 3 Balancing the tradeoffs between different degrees of latitude 3 Reasons for the high employee turnover at Affinity Plus 4 Management control system changes 5 The alignment of indirect lending and the MOE 6 Conclusion 6 Bibliography 8 Introduction In this case assignment the credit union Affinity Plus‚ which is based in Minnesota‚ will
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Q1. How attractive is the video game console industry in 2008? The video game industry can be seen as part of the broader entertainment industry‚ which is a sector that involves most part of the population all over the world‚ especially in the developed countries. The more countries will develop‚ the broader the entertainment industry’s consumer base will become‚ with the consequence of greatly widening video game industry’s potential customers. More specifically‚ video game console industry has
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