Student Name: Student ID Number: THE UNIVERSITY OF NEW SOUTH WALES JUNE / JULY 2006 FINS1613 Business Finance – Final Exam (1) TIME ALLOWED - 2 hours (2) TOTAL NUMBER OF QUESTIONS - 50 (3) ANSWER ALL QUESTIONS (4) ALL QUESTIONS ARE OF EQUAL VALUE. (5) THIS PAPER MAY NOT BE RETAINED BY CANDIDATE (6) CANDIDATES MAY BRING A PENCIL AND ERASER TO THE EXAMINATION. CANDIDATES MAY NOT BRING THEIR OWN CALCULATORS (7) THE FOLLOWING MATERIALS WILL BE PROVIDED
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9. What are the major advantages of a share repurchase over a cash dividend? The main advantage of stock or share repurchase over dividends is that the latter is a one-time distribution. This would be an increase in dividend is promised to the shareholders; therefore a company may pay the dividend on a regular basis in the future. The way I understand this is a dividend is a distribution of value to shareholders and stock repurchase is a form of dividend. 16. Explain why zero-coupon bonds have
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Industry Overview and Competitive Positioning 5 Porter’s Five Forces model 5 SWOT analysis 7 Financial Analysis 8 Cash Flows 8 Common size statements 9 Evaluating Internal Liquidity 11 Evaluating Operating Performance 12 Valuation 14 Dividend Discount Model 14 Present Value of Free Cash Flow to Equity 15 Present Value of Operating Free Cash Flow 17 Relative Valuation 19 Investment Risks 20 Investment Summary 21 Conclusion 22 * Key Information Company name: FEDEX
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The learning outcomes from this course are as follows: 1. Recognize the role played by the finance function in developing a global strategic plan. 2. Evaluate the extent to which a firm’s investment, financing, and dividend decisions contribution to creating value for its
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undervalued. To fix this, Ralph Whitworth, the CEO of Relational Investors, offered some recommendations as to how Genzyme could fix this problem. These recommendations were: improve capital allocation decision making, either implement a share-buyback program or issue a dividend, add more board members to the Genzyme board of directors who had more financial expertise, and change board member compensation to reflect the performance of Genzyme. Termeer was very familiar with how ‘activist investors’ such as
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There is one required group case write-up as shown in the Tentative Schedule. The write-up should be no longer than four double-spaced pages inclusive of exhibits (such as tables, charts and figures). In addition to these four pages, you may have a cover page and another page (the last page of the write-up) that is an assessment of group member contributions. The sum of the group member contributions must total 100%. Please use an 11 point font with a 1.5” margins (for my corrections and comments)
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2015 Current assets: Cash and cash equivalents Marketable securities Total cash, cash equivalents, and marketable securities Accounts receivable Receivable under reverse repurchase agreements Income taxes receivable, net Prepaid revenue share, expenses and other assets Total current assets Prepaid revenue share, expenses and other assets, non-current Non-marketable investments Deferred income taxes Property and equipment, net Intangible assets, net Goodwill Total assets $
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9-913-517 OCTOBER 22, 2012 W. CARL KESTER CRAIG STEPHENSON Hill Country Snack Foods Co. The Chief Executive Officer of Hill Country Snack Foods had never enjoyed analyst conference calls, but in late January of 2012, Howard Keener was yet again asked about the company’s cash balances, capital structure, and performance measures. One analyst complained that Hill Country’s growing cash position, absence of debt finance, and large equity balance made it difficult for a company in a mature
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would repurchase $2.5 billion of its own stock resulted in a price jump of 7% because "stock buybacks are a traditional way for corporations to return excess cash to shareholders without increasing quarterly dividend requirements. These payments are one-time cash distributions, over and above the normal cash dividend amounts, with the shares normally repurchased in open market transactions. In fact, in recent years, share repurchases have returned more cash to shareholders than cash dividends" (Hurtt
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Debt Payments | Equity Dividends | Debt Payments | Equity Dividends | $800 | 0 | 800 | 500 | 300 | $1,000 | 0 | 1000 | 500 | 500 | b. Unlevered Equity = Debt + Levered Equity. Buy 10% of XYZ debt and 10% of XYZ Equity, get 50 + (30, 50) = (80,100) c. Levered Equity = Unlevered Equity + Borrowing. Borrow $500, buy 10% of ABC, receive (80,100) – 50 = (30, 50) 14-6. a. V(Alpha) = 1022 = 220m = V(Omega) = D + E E = 220 – 60 = 160m p = $8 per share. b. Omega is overpriced
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