and Intellectual Property (IP) (1) Intellectual Capital - “the difference between the market value of a publicly held company and its official net book value is the value of its intangible asset.” (sviebly 1997) - Example: stock prices change in response to changes in management of an enterprise (Microsoft, oracle, SAP) - Can be highly volatile entity and dependent on daily fluctuation of capital market - However may create tangible risks for investors and other stakeholders. - Organisation
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Le terme Tiers monde est apparu, comme une formule, dans la chute d'une chronique de l'économiste et démographe français Alfred Sauvy en 1952, en référence au tiers état (de l'abbé Sieyès) français sous l'Ancien Régime. « Car enfin ce tiers monde ignoré, exploité, méprisé comme le tiers état, veut lui aussi, être quelque chose ». C’est cette volonté d’avoir un poids et une place dans les relations internationales ainsi que le contexte de guerre froide qui conduit les pays membres du Tiers Monde
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Team n°4: FS5 Group 2 Regulation of Banking and Financial Market January 16th, 2013 ISEG BANK is a new French credit institution authorized in France by the Autorité de Contrôle Prudentiel - ACP -. The bank wishes to provide both French and European clients with investment services.Please advise on : 1. What are the applicable prudential rules in providing investment services across the European Economic Area ? 2. What are the conduct of business rules to be observed in relation to client
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the target's stock will be converted into stock of the acquirer based on the exchange ratio predetermined in the merger agreement. The arbitrageur delivers the converted stock into his short position to complete the arbitrage. In an efficient capital market, the price of the target and acquirer will fully and immediately reflect the terms of the merger. However, risk arises from the possibility of deals failing to go through. Such possibility put the risk in the term “risk arbitrage”. Green circle had
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Inc.: Case Background: NorthPoint Large Cap Fund weighing whether to buy Nike’s stock. Nike has experienced sales growth decline, declines in profits and market share. Nike has reveal that it would increase exposure in mid-price footwear and apparel lines. It also commits to cut down expenses. The market responded mixed signals to Nike’s changes. Kimi Ford has done a cash flow estimation, and ask her assistant, Joanna Cohen to estimate cost of capital. What is WACC? and why
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(WACC): WACC = Debt/(Debt + Equity) x after Tax Cost of Debt + Equity/(Debt + Equity) x Cost of Equity We are going to find each component of the WACC formula. Determining the proportion of each source of capital: We use market value for weighting Nike’s equity. Market value of equity = current share price x share outstanding (data in Exhibit 2) = $42.09 x 271.5 million shares = 11,427.44 million $ Due to lack of information, we use book value of debt that is 1,296.6 million $ to calculate
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that implemented a strategy of profitable market-making. Thus, we achieved our objective as this algorithm has never once produced negative returns in the RIT ALGO 2 case. Below is a chronological summary of the primary functions of our code and how it helps us achieve profitability. 1. Traditional market-making occurs as we submit 10,000 share limit buy orders at the mid-market price minus a $0.02 spread and 10,000 share limit sell orders at the mid-market price plus a $0.02 spread. The goal here
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Readings and Suggested Practice Problems Introduction: from Assumptions to Implications The Market Portfolio Assumptions Underlying the CAPM Portfolio Choice in the CAPM World The Risk-Return Tradeoff for Individual Stocks VII. The CML and SML VIII. “Overpricing”/“Underpricing” and the SML IX. X. Uses of CAPM in Corporate Finance Additional Readings Equilibrium Process, Supply Equals Demand, Market Price of Risk, Cross-Section of Expected Returns, Risk Adjusted Expected Returns, Net Present
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Pick the correct answer. If answers A through D are not correct or there is inadequate information, pick answer E. 1. Assume that the one-period spot interest rate is 3% and the two-period spot interest rate is 7%. What is the present value of $100 received one year from now? A. $87.34 B. $93.46 C. $96.12 D. $97.08 E. None of the above.$97.08 2. The present value of $100 received one year from now
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and minimum transfer price would be $75, the market price, since now both the Harvesting and Sawing divisions are operating at full capacity. Below $75, contribution would not be maximized; the opportunity cost of contribution margin forgone would increase. Also, the objectives of goal congruence and optimal sub-unit performance would not be met. Question 4 a) Market share variance: Actual market size in units x (Actual market share - Budgeted market share) x Budgeted contribution margin per
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