BD

Corporate Finance

Corporate Finance

Basic Skills Needed

What are the potential conflicts of interest that underlie a business and how do they manifest themselves in practice?

Can you read a regression of stock returns against market returns?

How would you use the intercept to measure stock price performance?

What does the slope of the regression measure?

What does the R squared of the regression…

BAD BLOOD BY JOHN CARREYROU

BAD BLOOD BY JOHN CARREYROU

A National Besteller

“Chilling…Reads like a West Coast version of All the President’s Men.“ —The New York Times Book Review

The full inside story of the breathtaking rise and shocking collapse of Theranos, the multibillion-dollar biotech startup, by the prize-winning journalist who first broke the story and pursued it to the end, despite pressure from its charismatic…

Dead if You Don’t – Peter James

Dead if You Don’t – Peter James

A PARENT’S WORST NIGHTMARE IS GRACE’S DEADLIEST CASE . . .

Roy Grace, creation of the CWA Diamond Dagger award winning author Peter James, faces his most complex case yet in Dead If You Don’t.

Kipp Brown, successful businessman and compulsive gambler, is having the worst run of luck of his life. He’s beginning to lose, big style. However, taking his teenage son,…

THE ASIAN FINANCIAL CRISIS: CAUSES, RESULTS AND LESSONS FOR THE FUTURE

THE ASIAN FINANCIAL CRISIS: CAUSES, RESULTS AND LESSONS FOR THE FUTURE

EAST ASIAN CRISIS

Affected mainly countries in East Asia

(mostly South Korea, Thailand & Indonesia)

Spread to the rest of the World

Changed the perspective of the whole world towards financial markets and investments

Asian crisis Background

The floating of the Thai Baht 2nd July ’97  was followed by an immediate…

Financial Institutions & Markets – Part two

Financial Institutions & Markets

Primary versus Secondary Markets: • A Primary Market is one in which a borrower obtains funds from a lender by selling newly issued securities. – Occurs out of the public views. – An investment bank determines the price, purchases the securities, and resells to clients. • This is called underwriting and is usually very profitable.

Primary versus Secondary Markets:…

Financial Institutions & Markets – Part one

Financial Institutions & Markets An Overview of Financial Markets & Institutions  Financial

Financial development is linked to economic growth.

The role of the financial system is to facilitate production, employment, and consumption.

Resources are funneled through the system so resources flow to their most efficient uses.

The international financial system exists to facilitate the design, sale,…

Steve Jobs The leader – A man who never give up

Steve Jobs The leader – A man who never give up

Steve Jobs

    BIOGRAPHY

Born on February 24, 1955 and adopted by Paul & Clara Jobs.

Worked with HP for summer internship after High School.

Dropped out of college after the very first semester.

1976:      Started apple computers with Steve Wozniak in 1976.

1984:      Introduced Revolutionary Macintosh the market.

1985:      was forced to resign by…

The 100 Best Business Books of All Time (2016)

The 100 Best Business Books of All Time (2016)

Publisher: Portfolio; 2 edition (August 2, 2016) Language: English ISBN-10: 0143109731 ISBN-13: 978-0143109730 Thousands of business books are published every year— Here are the best of the best After years of reading, evaluating, and selling business books, Jack Covert and Todd Sattersten are among the most respected experts on the category. Now…

The Subtle Art of Not Giving a Fck (2016)

The Subtle Art of Not Giving a Fck (2016)

he Subtle Art of Not Giving a Fck - A Counterintuitive Approach to Living a Good Life (2016) (Epub) Gooner Publisher: Harperone (13 Sept. 2016) Language: English ISBN-10: 0062641549 ISBN-13: 978-0062641540 In this generation-defining self-help guide, a superstar blogger cuts through the crap to show us how to stop trying to be "positive" all the time so…

Answers to Concepts Review and Critical Thinking Questions

Answers to Concepts Review and Critical Thinking Questions:

Answers to Concepts Review COST OF CAPITAL CHAPTER 15:

Answers to Concepts Review and Critical Thinking Questions

1. It is the minimum rate of return the firm must earn overall on its existing assets. If it earns more than this, value is created.

2. Book values for debt are likely to be much closer to market values than are equity book…

Capital Structure and Leverage

Capital Structure and Leverage:

Capital Structure and Leverage:

SOLUTIONS TO END-OF-CHAPTER PROBLEMS

    13-1  QBE =

QBE =

QBE = 500,000 units.

   13-2  The optimal capital structure is that capital structure where WACC is minimized and stock price is maximized.  Since Jackson’s stock price is maximized at a 30 percent debt ratio, the firm’s optimal capital structure is 30 percent debt…

To Kill a Mockingbird

by Harper Lee

The unforgettable novel of a childhood in a sleepy Southern town and the crisis of conscience that rocked it, To Kill A Mockingbird became both an instant bestseller and a critical success when it was first published in 1960. It went on to win the Pulitzer Prize in 1961 and was later made into an Academy Award-winning film, also a classic.

Compassionate, dramatic, and deeply moving, 

Financial Leverage and Capital Structure Policy – Ross, Westerfield and Jordan 7e

Financial Leverage and Capital Structure Policy Ross, Westerfield and Jordan 7e:-

Cost of Equity

Cost of Preferred Stock

Cost of Debt

Proportion or weight of each form of financing

Cost of Capital = WACC

Unadjusted/Adjusted

When should we use WACC?

Other approaches: pure play and subjective

Flotation Costs

Outline:

The Capital Structure Question

The Effect of Financial Leverage

Capital Structure…