FNCE90013 Case Studies in Finance SUBJECT GUIDE July – August, 2015 Prepared by George Kester Department of Finance Faculty of Business and Economics Objective To develop an understanding of applied corporate finance including financial analysis and forecasting, financing sales growth, short-term versus long-term financing, capital structure policy, capital investment analysis, cost of capital, and company valuation. The course will be experiential and focus upon selected Harvard
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CHAPTER 2 Present Values, The Objectives of the Firm, and Corporate Governance Answers to Practice Questions 1. The face value of the treasury security is $1,000. If this security earns 5%, then in one year we will receive $1,050. Thus: NPV = C0 + [C1/(1 + r)] = −$1000 + ($1050/1.05) = 0 This is not a surprising result because 5 percent is the opportunity cost of capital, i.e., 5 percent is the return available in the capital market. If any investment earns a rate of return equal to the opportunity
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PART 1 Introduction to Managerial Finance CHAPTERS IN THIS PART 1 2 3 The Role and Environment of Managerial Finance Financial Statements and Analysis Cash Flow and Financial Planning INTEGRATIVE CASE 1: TRACK SOFTWARE, INC. CHAPTER 1 The Role and Environment of Managerial Finance INSTRUCTOR’S RESOURCES Overview This chapter introduces the student to the field of finance and explores career opportunities in both financial services and managerial finance. The three basic legal forms of business
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the personal financial arrangements of the founder. This can be personal savings or other cash balances that have been accumulated. It can be personal debt facilities which are made available to the business. It can also simply be the found working for nothing! The following notes explain these in a little more detail. * Savings and other “nest-eggs” An entrepreneur will often invest personal cash balances into a start-up. This is a cheap form of finance and it is readily available. Often
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$55,292 10,026 6,923 12.0% $ 2.43 2.53 1.03 NET SALES (in billions of dollars) DILUTED NET EARNINGS (per common share) 05 06 07 08 09 $55.3 $66.7 $74.8 $81.7 $79.0 05 06 07 08 09 $2.53 $2.64 $3.04 $3.64 $4.26 OPERATING CASH FLOW (in billions of dollars) 05 06 07 08 09 $8.6 $11.4 $13.4 $15.0 $14.9 Note: Previous period results have been amended to exclude the results of the Folgers coffee business from continuing operations. For more information refer to Note 12
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statements and taxes, conduct a basic lease analysis from the perspective of the lessee, discuss the factors that create value in lease transactions, explain in general terms how businesses are valued, and conduct a business valuation using discounted cash flow and market multiple approaches. Introduction This chapter covers two unrelated topics: lease financing and business valuation. Leasing is a substitute for debt financing and hence expands the range of financing alternatives available to businesses
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Topic Page no 1. Executive Summary 1 2. Business Idea 2 3. Goals & Objectives 3 4. Market Potential 3 5. Competition 4 6. Marketing Plan 5 7. Operation 6 8. Management Team 6 8. Resource Requirement 7 9. Implementation Plan 7 10. Risk Assessment 8 11. Financial Plan 9-10 12. Appendix i-xxiv Executive Summary The phenomenon about using bamboo is limited within, bridge, rural housing, fencing etc. But there is a golden opportunity to produce one of the urban housing materials
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Team Name CASE CRACKERS Report Title CeeCee in the next 5 years University Nanyang Technological University Team members Chen Xinyi Lee Wai Hon Gabriel Liu Xinyi Yeo Shi Yuan 1 TABLE OF CONTENTS Page 1. Executive Summary ………………………………………..3 2. Introduction ……………………………………………….. 4 3. Strategic Analysis…………………………………………..5 3.1 Company Analysis 3.2 Industry Analysis 3.3 SWOT analysis 4. Financial Analysis…………………………………………..8 4.1 Financial Ratios 5. Issues Analysis and Recommendations………………
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Running head: PROBLEM SOLUTION: LESTER ELECTRONICS Problem Solution: Lester Electronics University of Phoenix Problem Solution: Lester Electronics Lester Electronics is at a turning point in the business world. Bernard Lester has found that they cannot continue to manage the business as has previously been done in the past. The changes in the industry and the possible loss of their largest vendor, Shang-wa, are two of the main challenges facing Lester. One is growth, which represents an
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Relevant cash flows Answer: d Diff: E . Which of the following statements is most correct? a. The rate of depreciation will often affect operating cash flows, even though depreciation is not a cash expense. b. Corporations should fully account for sunk costs when making investment decisions. c. Corporations should fully account for opportunity costs when making investment decisions. d. Statements a and c are correct. e. All of the statements above are correct. Relevant cash flows Answer:
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