copfin everything

50 %
50 %
Information about copfin everything

Published on July 9, 2007

Author: Saxophone


Corporate Finance:  Corporate Finance Everything….. R Srinivasan Corporate Finance:  Corporate Finance Valuation and Cost of capital Capital budgeting Capital structure, financing and dividend policy Working capital Valuation:  Valuation Generalised valuation Arbitrage and value additivity Patterns Level perpetuity Growing perpetuity Level annuity Growing finite cash flow Valuation:  Valuation Growing finite [t years] cash flow C1/(r-g){1-(1+g)t/(1+r)t} Valuation:  Valuation Compounding intervals (1+r/m)m-1 Continuous compounding Stated and effective rates Nominal and real rates 1+rnominal=(1+rreal)(1+inflation rate) Valuation: Straight Bonds:  Valuation: Straight Bonds YTM Duration Sensitivity of value to changes in interest rates [1*PV(C1)/V]+[2*PV(C2)/V]+[3*PV(C3)/V] V/V = (1+r)/(1+r)*D Valuation: Common Stock:  Valuation: Common Stock Perpetual growth models Sustainable growth P0=No-Growth +PVGO No-growth =EPS1/r PVGO=NPV1/(r-g) where NPV1 =-INV1 +INV1*ROE/r g=Ploughback*ROE EPS1/P0 interpretation Valuation:  Valuation Multiple stages Supernormal stage plus PV of normal growth Free cash flow NOI approach Cost of Capital:  Cost of Capital Security return and standard deviation Portfolio return and standard deviation Diversification Portfolio variance= 1/N Average Var+(N-1)/N Average covariance Systematic and unsystematic risk CAPM Opportunity cost of capital r [rA]and Adjusted cost of capital r* Cost of Capital:  Cost of Capital 1. VL = VU +Tc *D 2. WACC = D/V * (1-Tc) * rD+E/V * rE [Definition of WACC] 3. rE = rA + (rA - rD ) * (1- Tc) * D/E [MM Proposition II] 4. b E = {1+ (1- Tc) * D/E} *b A [If debt is risk free] 5. rE = rf + (rM - rf) *b E [CAPM] 6. WACC= rA *(1- Tc * D/V) MM Valuation:  Valuation Contingent cash flow Call/Put American/European Binomial Black-Scholes Underlying asset price, Exercise Price, Risk-free rate, Volatility, Time Capital Budgeting:  Capital Budgeting NPV and IRR not payback and accounting rate of return Accept/reject single project use NPV or IRR, unless no/multiple IRR Mutually exclusive projects: Same life and risk Use NPV [or IRR of difference between projects] Capital Budgeting:  Capital Budgeting Mutually exclusive projects: Different lives same risk Use NPV-assumes replacement projects have zero NPV. OK for projects with long lives Use NPV-with specific replacements that make project with comparable lives Use replacement chain or EAC Care: Use only real cash flows for EAC Capital Budgeting:  Capital Budgeting Incremental nominal cash flows with empirically measured discount rate Components of cash flow Investment in fixed assets, salvage value Investment in working capital, release Operating revenues/expenses NO INTEREST Capital Budgeting:  Capital Budgeting NPV assumes 'now or never' Real Option framework Abandonment Follow-up Wait and learn Flexibility Capital structure :  Capital structure Market Efficiency MM-1 No taxes MM-2 Corporate taxes Miller Both corporate and personal taxes GL= {1-(1-TC)*(1-TpE)/(1-Tp)} Bankruptcy costs Agency costs Dividends:  Dividends MM Does not matter Lintner behavioural model DIV1-DIV0=Adjustment rate*(target ratio*EPS1-DIV0) Agency costs/signalling Working Capital Management:  Working Capital Management Operating cycle, cash conversion cycle, weighted cycles and supply chain management Investment in receivables Cash management EOQ and Miller-Orr models

Add a comment

Related presentations

Related pages

Corpfin Capital | Details, Investments, Phone Number

Learn everything about the organization you're researching. Menu. See All Private Equity. Corpfin Capital Overview. Portfolio. Location. Related .
Read more

Copfin Business Solutions, Lynnwood Glen, Pretoria ...

Copfin Business Solutions is located at 386 Acorn Road Lynnwood Glen, Pretoria. Contact 012 361 0****. View the latest reviews, photos and videos of Copfin ...
Read more

Office Equipment Suppliers in Lynnwood Glen, Pretoria

Copfin Business Solutions. 386 Acorn Road, Lynnwood Glen ... People use Snupit to search for everything from the city's tastiest pizza to the most renowned ...
Read more

Copiers in Pretoria - Cylex Business Directory South Africa

Results for Copiers in Pretoria; customer reviews, prices, contact details, opening hours from Pretoria based businesses with Copiers keyword.
Read more

Linda Brink | LinkedIn

General PA functions in a small company - everything from helping customers to collecting debt. ... Copier Technician at Copfin. bryson nankhuni.
Read more

Amity Willenborg at Johns Hopkins University Carey ...

Rating and reviews for Professor Amity Willenborg from Johns Hopkins University Carey Business School Baltimore, MD United States.
Read more

Top 23 Security Practitioner profiles in Johannesburg Area ...

Here are the top 23 Security Practitioner profiles in Johannesburg Area on LinkedIn. Get all the articles, experts, jobs, and insights you need.
Read more

Armen Lukman Hidayat - My Funny Profile

Someone that I can tell anything and everything. Sibling. Next Do I love old movies. I only prefer newgen ... Gesios Copfin Michele Kamber Donohue Bill ...
Read more