...Case #3 SZLN: Acquiring PEM, Group 9, Financial Management 1. What strategic opportunities and risks should SZLN take into account when assessing the acquisition? When considering the acquisition of PEM, SZLN must make sure meeting the requirements of both Chinese and Australians regulators. The acquisition has the following opportunities: - The ore mined by SZLN was not enough for its required capacity, by acquiring PEM it can get the needed capacity. - PEM was a world known lead zinc mining company, the acquisition of such a company can enable SZLN to achieve the platform it needed for international expansion. - SZLN and PEM each had advanced mining technologies, the combination of such technologies can give them a competitive advantage. - PEM also had operational and efficiencies SZLN could lean from. The acquisition has the following risks: -There are Managerial and cultural risks related to cross-border acquisitions by Chinese companies. this kind of acquisitions by Chinese companies had bad experience in the past, and considering the unsuccessful past experience - this acquisition is under a high risk. 2. Determine the value of the PEM shares to SZLN by employing (1) discounted cash flow using the free cash flow to equity method, Refer to the attached excel sheet named 'question 2' (2) the comparable transactions method. The purpose of the comparable transaction method is to evaluate a project by comparing the project with similar...
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...Subjective traders they are intertwined with their trades.Their signals are generally entering out of greed and exiting based on their own internal fear. The believe in their opinions more than the actually price action. They base trades off of whether they are feeling good or bad about a particular trade. A subjective trade comes out of the imagination of the trader, from their own beliefs, opinions, and what “should” happen in their view. Many times reality is not even cross checked as a reference, and if it is the subjective traders sees what they want to see instead of what is really going on. Their compass is their emotions and they have internal goals other than making money. Objective: (Of a person or their judgment) not influenced by personal feelings or opinions in considering and representing facts. Having actual existence or reality. Objective traders have a quantified method, a system, rules, and principles they trade by. They know where they will get in based on facts, and where they will get out based on price action. Objective traders have a written trading plan to guide them. The guides of the objective trader is historical price action, charts, probabilities, risk management, and their edge. They react to what is happening in reality in quantifiable terms that can be measured. They go with the flow of price action not the flow of internal emotions. Don’t be inside of your trade emotionally and don’t attach your ego to it. Be the trader that witnesses the trade...
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...NATIONAL UNIVERSITY OF SINGAPORE NUS BUSINESS SCHOOL Department of Finance BMA5318: Investment Banking (Summer I: May-June 2012) Instructor: Banikanta Mishra Office: BIZ 1 Level 7-77 Telephone: +91-943-707-5075 E-mail: banikant@ximb.ac.in Prerequisite: BMA5008 (Financial Management) COURSE SYNOPSIS: This course is a blended introduction to Investment Banking (IB). It would combine theory and practice. To buttress our understanding of practice, we would do some case studies and also have practitioners give a Street Talk every week; some of them may discuss live projects and I may pitch in with my experience with past ones I have been directly involved in. Moreover, we would have both qualitative and quantitative discussions on most topics, the latter mainly being numerical examples (not any rocket science or high-flying calculus). Though we would talk about the global scenario, our focus, whenever possible, would be on Asia. After gaining an idea into what IB is and understanding the basics of Trading, we would study in detail the capital-raising process, mainly Underwriting and Syndication. Here, we would learn about IPO and SEO and ADR and GDR as well as about NIF and RUF. We would also get familiar with Euromarket and the innovative Euro instruments like Euronote and Euro-CP as well as Eurobond and Euroequity. This would also give an opportunity to get a glimpse into Financial Engineering in debt and equity instruments as well as about Structured...
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...GOODMAN INSTITUTE OF INVESTMENT MANAGEMENT John Molson School of Business GIIM 618 SEMINAR IN CORPORATE FINANCE Fall 2012 Saturday 12:30pm – 3:00pm September 8 – December 8, 2012 Instructor: Loretta Hung Office: MB-12.231 Tel.: (514) 848-2424 ext. 5114 E-mail: lorethun@jmsb.concordia.ca Please contact professor to confirm appointments. COURSE OBJECTIVES The course offers an in-depth coverage of Study Session 8 and 9 in preparation for CFA Level II examination. In addition, the course is designed to develop your skills in solving various financial problems through assessment of cases. TEXTBOOKS “Corporate Finance,” CFA© Program Curriculum 2013, Level II, Volume 3 Reading 25: Capital Budgeting Reading 26: Capital Structure Reading 27: Dividends and Share Repurchases: Analysis Reading 28: Corporate Governance Reading 29: Mergers and Acquisitions Cases - binder EVALUATION PROCEDURE Two In-Class Tests Case Analysis & Presentation Written Case Report Case Rebuttal & Class Contribution Final Exam Total CLASS TESTS AND FINAL EXAM Class tests will take about 75 minutes each and the final exam will be 2-1/2 hours long. The format for testing will include multiple-choice item sets and/or multiple-choice questions. CASE ANALYSIS & PRESENTATION The classes in Montreal and Toronto will divide themselves into four and two groups, respectively. The classes themselves can decide who is in which group. The Groups are to be established by September 10, 2012 and the Group Coordinator is to...
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