CORPORATE FINANCE DEMYSTIFIED 2E

Using P:E ratios to detect under- or over-valuation implies that markets are slow or inefficient processors of information, but there are reliable rough benchmarks that can be utilised. The industry benchmark is established by one or more transactions, against which other deals in the same in[r]

INVESTOR PROTECTION
Shareholders provide equity in exchange for dividend and voting rights. Likewise creditors lend money in exchange for interest and principal payments and the right to possess collateral when the company defaults on its payments. The difference in governance in different parts o[r]

• Financing opportunities encompass international capital TRANG 5 Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Corporate Finance 3e Ross, Thompson, Christensen[r]

The example here illustrates the danger of blindly using calculators or computers without understanding what is going on; we shudder to think of how many capital budgeting decisions in the real world are based on incorrect use of this particular function.
Conceptually, the discount rate on a risky[r]

Finally, comparison of actual to sustainable growth rates helps a banker understand why a loan applicant needs money and for how long the need might continue. In one instance, a loan applicant requested $100,000 to pay off several insistent suppliers and promised to repay in a few months when[r]

TRANG 5 Download free eBooks at bookboon.com CLICK ON THE AD TO READ MORE CORPORATE FINANCE 5 CONTENTS 4 HE NET PRESENT VALUE INVESTMENT RULE 22 5 RISK, RETURN AND OPPORTUNITY COST OF CA[r]

205 UNIT 9: FINANCIAL ANALYSIS AND CORPORATE FINANCE.... UNIT OBJECTTIVES ...[r]

2. If a company is growing by opening new stores, then presumably total revenues would be rising. Comparing total sales at two different points in time might be misleading. Same-store sales control for this by only looking at revenues of stores open within a specific period.
3. Th[r]

- Scenario analysis calculates NPV in diferent states, e.g. pessimistic, normal, and optimistic.
- Break even analysis
- Analysis of the level at which the company breaks even, i.e. at which point the present value of revenues are exactly equal to the present value of total costs.[r]

of issue. If interest rates have risen, holders will turn in the bonds and reinvest the pro- ceeds at a higher rate. This feature enabled Transamerica to sell the bonds with an 8 1 ⁄ 2 percent coupon at a time when other similarly rated bonds had yields of 9 percent.
In late 1988, the [r]

■ strategic Management
■ elective Courses
BriAn kATz is no stranger to changing careers. As an undergrad, he dropped out of jazz school and, at the age of 19, walked into a bar on the south side of Chicago where his idol, Carlos Johnson, invited him on stage for a jam session. That was a t[r]