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... refers to the decision to invest in long term assets. The assets are expected to be used over a long period of time e.g. when a firm acquires plant and equipment or replaces an old equipment or when you invest in research and development. ...
Sample title for chapter 1
Sample title for chapter 1

6% Marginal Cost of Capital
6% Marginal Cost of Capital

... First, there is the risk involved in investing in an option under consideration rather than buying government bonds. This is usually measured as the difference between the return on government bonds and that on the investor’s borrowing (e.g., bonds). Second, when investors borrow from lenders they i ...
Chap001
Chap001

Contrapartida
Contrapartida

... in 2007. As international accounting standards converge and increasingly call for fair value rather than historical or market value, understanding it becomes essential. Fair value consists of three valuation levels: Level 1 being the most reliable, and level 3 the least. Level 1 uses observable (mar ...
Dividend Policy
Dividend Policy

Balance of Payments Short
Balance of Payments Short

... Imports & exports: payments/receipts from the import/export of tangible goods (cars, food, textiles,…) ...
chapter 27 powerpoint abridged for students
chapter 27 powerpoint abridged for students

... standard deviation, a statistic that measures a variable’s volatility – how likely it is to fluctuate. ...
Financial Leverage and Capital Structure Policy
Financial Leverage and Capital Structure Policy

ECONOMIOC ANALYSIS OF THE COPPER MINING INDUSDRY OF
ECONOMIOC ANALYSIS OF THE COPPER MINING INDUSDRY OF

... Therefore in order to assess the profitability of a potential investment opportunity, one must compare the present value of a project with the value derived from other investments. The Net Present Value [NPV] (a useful method for economical evaluation) = The sum of discounted values of all future re ...
Report on the analysis of municipal budgets for the 2004/2005
Report on the analysis of municipal budgets for the 2004/2005

Private Placements and Infrastructure Finance.qxp
Private Placements and Infrastructure Finance.qxp

... so offer inflation protection and good, long-term matching prospects for long-term scheme liabilities. Essentially, private placements are unlisted and unsecured debt and although not typically publicly rated, they are predominantly of investment-grade quality. Private placements attract more string ...
Lecture Notes
Lecture Notes

... “After we buy a stock, consequently we would not be disturbed if markets closed for a year or two. We don’t need a daily quote on our 100 percent position in See’s or H.H. Brown to validate our well being. Why, then, should we need a quote on our 7 percent interest in Coke?” ...
CAPITAL BUDGET CARRY FORWARD
CAPITAL BUDGET CARRY FORWARD

Principles of Portfolio Construction: Lord Abbett Smid
Principles of Portfolio Construction: Lord Abbett Smid

Capital Reduction
Capital Reduction

... Thus, reducing capital to offset the deficit in retained earnings was a proper option that did not affect the company’s financial status. It positively impacted shareholders by giving them the chance to receive dividends or even capital gains from share price movement”. Mr. Polpat Karnasuta, Preside ...
PowerPoint
PowerPoint

... • long-term (liabilities, debt, obligations): maturing over or after a relatively long period of time/ μακροπρόθεσμη οφειλή • short-term (liabilities, etc.): maturing over a relatively short period of time/ βραχυπρόθεσμα χρέη • securities: the financial asset represented by a certificate carrying th ...
to view Full text
to view Full text

Directors` Guide to Credit - Federal Reserve Bank of Atlanta
Directors` Guide to Credit - Federal Reserve Bank of Atlanta

chapter 31 - Pearsoncmg.com
chapter 31 - Pearsoncmg.com

Credit crisis
Credit crisis

... portfolios and in taking advantage of distressed assets. In the mid term the industry will return to fundamental-based deals (smaller, less leveraged, longer holding periods) ...
Present financial position and performance of the firm
Present financial position and performance of the firm

all cap equity - Eagle Asset Management
all cap equity - Eagle Asset Management

... may also contribute to price declines. Value stocks have historically been sensitive to economic cycles and investor sentiment that can affect volatility and risk. As with all equity investing, there is the risk that a company will not achieve its expected earnings results, or that an unexpected cha ...
Creating a Dynamic DCF Analysis: A Detailed Excel Approach
Creating a Dynamic DCF Analysis: A Detailed Excel Approach

... In the area of valuation, the Discounted Cash Flow (DCF) method is widely viewed as an acceptable means to measure the net present value (NPV) of firms, projects, and securities (Downes and Goodman 1998). In a project valuation, the DCF is dependent upon determining the expected after-tax free cash ...
File: ch10 Type: Multiple Choice 1. Which are the two major
File: ch10 Type: Multiple Choice 1. Which are the two major

... 1. The only reliable way to calculate the price of a common stock is to discount the future flow of dividends at a discount rate appropriate to the riskiness of the company. Ans: False Response: Discounting methods can use dividends (if any), earnings, or cash flow. Section: Which Approach to Use. ...
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Corporate finance

Corporate finance is the area of finance dealing with the sources of funding and the capital structure of corporations and the actions that managers take to increase the value of the firm to the shareholders, as well as the tools and analysis used to allocate financial resources. The primary goal of corporate finance is to maximize or increase shareholder value. Although it is in principle different from managerial finance which studies the financial management of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms.Investment analysis (or capital budgeting) is concerned with the setting of criteria about which value-adding projects should receive investment funding, and whether to finance that investment with equity or debt capital. Working capital management is the management of the company's monetary funds that deal with the short-term operating balance of current assets and current liabilities; the focus here is on managing cash, inventories, and short-term borrowing and lending (such as the terms on credit extended to customers).The terms corporate finance and corporate financier are also associated with investment banking. The typical role of an investment bank is to evaluate the company's financial needs and raise the appropriate type of capital that best fits those needs. Thus, the terms ""corporate finance"" and ""corporate financier"" may be associated with transactions in which capital is raised in order to create, develop, grow or acquire businesses. Recent legal and regulatory developments in the U.S. will likely alter the makeup of the group of arrangers and financiers willing to arrange and provide financing for certain highly leveraged transactions.Financial management overlaps with the financial function of the Accounting profession. However, financial accounting is the reporting of historical financial information, while financial management is concerned with the allocation of capital resources to increase a firm's value to the shareholders.
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