Content Table of Content i 1 The Porsche Takeover 1 2 FPL Case 3 2.1 Expected Reaction of Stock Price 3 2.1.1 The Modigliani/Miller Theorem 3 2.1.2 The Tax Theory of Dividends 4 2.1.3 The Signaling Theory of Dividends 5 2.1.4 Agency Costs 5 2.1.5 Theory of Dividends Based on Tax Clienteles 6 2.2 Chart in the Light of Previous Theories 7 3 Elton and Gruber (1970): “Marginal Stock Holders tax Rates and the Clientele effect”, Review of Economics and Statistics 52, p. 68-74 8
Words: 3416 - Pages: 14
lower-rated ABX indexes to higher-rated ABX indexes, and then from the subprime markets to the Treasury bond and stock markets. ABX index returns forecast stock and Treasury bond returns as much as three weeks ahead during the crisis. Furthermore, ABX index shocks are significantly related to contractions in the size of the short-term credit markets and increases in the trading activity of financial stocks over the next several weeks. These results provide support for the hypothesis that financial contagion was
Words: 10924 - Pages: 44
Course Description and Objectives This course introduces basic financial concepts all business managers should understand regardless of functional specialization. Topics include financial analysis and planning, time value of money, valuation, capital budgeting, risk/return trade-offs, cost of capital, and capital structure. The pedagogical approach used is a mixture of lectures and case examples. Cases are often used as a vehicle for discussing the complexities of real-world financial problems
Words: 2388 - Pages: 10
liabilities than similar companies. This represents a slight weakness; Company G should work to reduce their liabilities and increase their assets. Acid-Test (Quick) Ratio Acid-Test Ratio is a more stringent indicator of a company’s ability to cover current liabilities because it removes the current inventory from the ratio. The acid-test ratio dropped from .64 in 2011 to .43 in 2012. This represents a 32.8% ratio decrease and indicates the company may have less cash on hand to pay off current
Words: 1409 - Pages: 6
these types. Answer 1: The different types of financial ratios used in the analyzing financial statements of a company are: 1. Liquidity Ratios 2. Leverage Ratios 3. Turnover Ratio 4. Profitability Ratio 5. Valuation Ratio Let us consider the Profit and Loss A/c and Balance Sheet of OM Enterprises Limited to illustrate the calculation of these ratios Profit and Loss Account of OM Enterprises Limited for the year ending on March 31, 2006 |PARTICULARS
Words: 6248 - Pages: 25
• Assess ability to cover long term debt obligations• Operational Ratios: – Activity (Turnover) Ratios • Assess amount of activity relative to amount of resources used – Profitability Ratios • Assess profits relative to amount of resources used• Valuation Ratios: • Assess market price relative to assets or earnings 7. Liquidity Ratios• Current Ratio – Current Assets / Current Liabilities • Current Assets include Cash, Marketable Securities, Accounts Receivable and Inventory • Current Liabilities
Words: 1966 - Pages: 8
EDGARD E. RUIZ 631 SW 111 Lane, Apt # 308, Pembroke Pines, FL 33025 954 – 330 – 2613 edgard.ruiz@gmail.com EDUCATION Master of Science, MBA in Finance and Financial Markers San Pablo CEU University, Madrid, Spain, 2004 - 2005. Bachelor of Science, Business Administration in International Business and Finance Sergio Arboleda University, Bogotá, Colombia, 1999 - 2004. International Year School, Advance English Anglo World Education, Cambridge, England, 1997 – 1998 PROFILE
Words: 865 - Pages: 4
Investment Banking Valuation, Leveraged Buyouts, and Mergers & Acquisitions JOSHUA ROSENBAUM JOSHUA PEARL FOREWORD BY JOSEPH R. PERELLA Investment Banking Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding
Words: 138300 - Pages: 554
the effects of all cash trans-actions that have occurred; year – end transfer of cash between banks are recorded in the proper period. - rights and obligations the entity has legal title to all cash balances shown at the balance sheet date. - valuation recorded cash balances are realizable at the amounts stated on the balance sheet and agree with supporting schedules. - presentation and disclosure cash balances are properly identified and clas-sified in the balance sheet; lines of credit,
Words: 1397 - Pages: 6
Chapter 7 – Internal Controls • Key topics: • Know the broad definition of internal control and its purposes, including the objective that is particularly relevant to an audit (i.e. reliability of financial reporting) A process, effected by the entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations (effective and efficient operations), reporting (accurate financial reporting) and
Words: 7297 - Pages: 30
