Who am I? AESC 210 Global Systems Butler International Finance
|
|
- Melvyn Steven Bishop
- 5 years ago
- Views:
Transcription
1 Who am I? BA Psychology Honors College MS Computer Science College of Engineering MBA Finance College of Business PhD Finance College of Business all from Michigan State University I am ALL IN on the color GREEN
2 Where have I been? Director, Education Abroad, Coll. of Business Faculty leader: Argentina (1), Brazil (3), Chile (1), China (3), Czech Republic (2), Hungary (2), Slovakia (2), S. Africa (2), S. Korea (3) Visiting Prof., Augsburg Universität, Germany Visiting Prof., University of Michigan, Ann Arbor
3 Global Systems The only trouble with going abroad is that you have to leave home to do it. Anon
4 Global Systems Global economics: International/corporate finance by Kirt C. Butler, Department of Finance Learning objectives The domain of finance Corporate governance Market entry decisions Investment decisions and NPV Ethical environmental behavior
5 Global Systems International Business Is both international & business
6 The domain of finance Capitalism and finance Capitalism is an economic system in which trade, industry, and the means of production are controlled by private owners with the goal of making profits in a market economy. (Wikipedia) Finance provides a framework for evaluating the opportunities, costs and risks of the firm s investments, including their financing and operation. (Butler, Multinational Finance, 6e)
7 The domain of finance The objective of the firm is commonly stated as maximize shareholder wealth This is not the same as profit maximization Profits are not the same as cash flows We can t ignore the riskiness of cash flows Value depends on current and future cash flows Of course, managers also look out for their own personal interests
8 The domain of finance Investment strategy - Should we develop a new product or service? - Should we enter country X or technology Y? - How fast should the firm grow? Financial strategy - How do we raise money for our investments? Management strategy - Where should we source our inputs to production? - Should we invest in that new IT system? - How should we compensate managers, engineers
9 What Finance can do for you In business, finance can help you - persuade top management to fund a development project, refurbish a plant floor, introduce a marketing campaign, or invest in a new IT system - acquire funds to start your own business In your personal life, finance can help you - make a lease-vs-buy decision on that new Corvette - decide how-and-when to refinance your mortgage - help you plan for and respond to life s contingencies - help you wisely invest your savings & plan for retirement - avoid common financial mistakes
10 Corporate governance Balance Sheet Liabilities Assets Owners equity Income statement Revenues - Operating expenses - Depreciation - Interest expense -Taxes Net income Cash flows = Cash inflows cash outflows Depreciation isn t a cash flow, but it does decrease taxes
11 Corporate governance Corporate governance refers to the way in which stakeholders exert control over the firm Board of Directors Management Debt Shareholders Assets Equity
12 Corporate governance Managers have many other stakeholders in addition to shareholders - debtholders - employees - customers - suppliers - communities - the Earth and its many inhabitants Corporate governance systems in various countries place different emphases on these various stakeholders
13 Market entry decisions The gentle reader will never, never know what a consummate ass he can become, until he goes abroad. Mark Twain
14 Market entry decisions Familiarity with a foreign market is useful in the market entry decision Business risk Multinational business risk Domestic business risk Knowledge of the foreign market or country
15 Market entry decisions Listen up, my Cossack brethren. We ll ride into the valley like the wind, the thunder of our horses and the lightning of our steel striking fear in the hearts of our enemies!...and remember stay out of Mrs. Caldwell s garden. Gary Larsen, The Far Side globaledge.msu.edu
16 Market entry decisions Country risk is the risk that the business environment in a host country will change unexpectedly Political risk is the risk that a host government will unexpectedly change the rules of the game under which businesses operate Financial risk refers more generally to unexpected events in a country s financial, economic, or business life
17 Market entry decisions Source:
18 Market entry decisions Intellectual property rights A patent is a government-approved right to make, use, or sell an invention for a period of time. - First-to-invent (USA) v first-to-file (e.g., Japan) A copyright prohibits the unauthorized reproduction of a creative work. A trademark is a distinctive name, word, symbol, or device used to distinguish a company s goods or services. A trade secret is an idea, process, formula, device, technique, or information that a company uses to its advantage.
19 Market entry decisions Ways to limit exposures to loss Find the right partner Develop and nurture your relationships Limit your exposure Limit the scope of technology transfer, only use assets near the end of their life cycle or with limited growth options, trade one technology for another Negotiate the investment & financial environment Taxes, labor issues, access to markets, obligations & restrictions, performance assurances & remedies, arbitration of disputes
20 Investment decisions and NPV Basic principle of investment decision making An investment is worth undertaking only if it is at least as desirable as financial market alternatives Net present value (NPV) 1. Identify the size & timing of all relevant cash flows 2. Identify the risk and hence the discount rate appropriate for the cash flow stream 3. Calculate the net present value by discounting the expected cash flows at the appropriate discount rate
21 Investment decisions and NPV It is the theory that determines what can be observed. Albert Einstein
22 Investment decisions and NPV Rule 1 Only cash is relevant Profits are only useful if they are in cash Rule 2 Identify (only) cash flows that change Incremental cash flow = (Alternative Base) Include anything and everything that changes - First, identify a base case as a starting point This often is do nothing, but we might be replacing an existing program - Then, assess alternatives relative to the base case Incremental cash flows associated with alternatives are estimated relative to the base case
23 Investment decisions and NPV Toolkit: Compounding Suppose we invest PV = $100 at r = 10% for t = 2 years $100 $110 $ Future value = $100 x 1.10 x 1.10 = $100 x (1.10) 2 = $121 or FV = PV (1+r) t
24 Investment decisions and NPV Toolkit: Discounting Suppose we are to receive FV = $100 in t = 2 years & the required return is r = 10% per year $100 $ Present value = $121/ (1.10) 2 = $100 or PV = FV / (1+i) t
25 Investment decisions and NPV The general form of net present value C 1 C 2 C 3 C 0 r NPV 0 = C 1 / (1+r) + C 2 / (1+r) 2 + = S t E[C t ] / (1+r ) t The discount rate r should be the same as that on a similarrisk asset in the financial market
26 Investment decisions and NPV To get anywhere, or even to live a long time, a man has to guess, and guess right, over and over again, without enough data for a logical answer. Robert Heinlein, Time Enough for Love
27 Investment decisions and NPV Praxair example Suppose Praxair, Inc. estimates the cash flows from the construction and operation of a cryogenic air separation system as follows: 0 +$100,000 +$120,000 +$80,000 -$200, Praxair requires a return of 15% on its investment.
28 Investment decisions and NPV Praxair example Spreadsheet valuation Required return = 15% Time Cash flow (150,000) 100, ,000 80,000 PV(CF) (150,000) 86,957 90,737 52,601 Project value 80,295 => accept
29 Investment decisions and NPV Inputs to this decision must be estimated, and can be negotiable or managed Year 1 Revenues 900,000 - Variable costs (400,000) - Fixed costs (375,000) Taxable income 125,000 - Taxes (20%) (25,000) Net income 100,000 Revenue = price * quantity Variable costs include labor and materials Fixed costs include administrative overhead Taxes often are negotiable, especially in international markets
30 Ethical environmental behavior Always do right. This will gratify some people and astonish the rest. Mark Twain
31 Ethical environmental behavior Capitalism Capitalism is an economic system in which trade, industry, and the means of production are controlled by private owners with the goal of making profits in a market economy. Central characteristics of capitalism include capital accumulation, competitive markets, and wage labor. Wikipedia
32 Ethical environmental behavior Public goods are not private goods (thank goodness) A public good is one which all enjoy in common in the sense that each individual's consumption of such a good leads to no subtractions from any other individual's consumption of that good... Paul Samuelson Air, water, national defense, personal safety,
33 Ethical environmental behavior How can environmental protection laws and regulations protect the environment while promoting the competitiveness of industry? How do you weigh the competing demands of environmental protection and economic competitiveness? Can international agreements on the environment level the playing field? Are such agreements enforceable? Are they even feasible?
34 Ethical environmental behavior I get up every morning determined to both change the world and have one hell of a good time. Sometimes this makes planning my day difficult. E.B. White
35
Who am I? AESC 210 Global Systems Butler International Finance
Who am I? BA Psychology Honors College MS Computer Science College of Engineering MBA Finance College of Business PhD Finance College of Business all from Michigan State University I am ALL IN on the color
More informationFinancial planning. Kirt C. Butler Department of Finance Broad College of Business Michigan State University February 3, 2015
Financial planning Making financial decisions How will things change if I take this action? Financial decision modeling A framework for decision-making What-ifs - breakeven, sensitivities, & scenarios,
More informationTopics in Corporate Finance. Chapter 2: Valuing Real Assets. Albert Banal-Estanol
Topics in Corporate Finance Chapter 2: Valuing Real Assets Investment decisions Valuing risk-free and risky real assets: Factories, machines, but also intangibles: patents, What to value? cash flows! Methods
More informationFinancial Economics: Household Saving and Investment Decisions
Financial Economics: Household Saving and Investment Decisions Shuoxun Hellen Zhang WISE & SOE XIAMEN UNIVERSITY Oct, 2016 1 / 32 Outline 1 A Life-Cycle Model of Saving 2 Taking Account of Social Security
More informationFinancial Management I
Financial Management I Workshop on Time Value of Money MBA 2016 2017 Slide 2 Finance & Valuation Capital Budgeting Decisions Long-term Investment decisions Investments in Net Working Capital Financing
More informationFinance 303 Financial Management Review Notes for Final. Chapters 11&12
Finance 303 Financial Management Review Notes for Final Chapters 11&12 Capital budgeting Project classifications Capital budgeting techniques (5 approaches, concepts and calculations) Cash flow estimation
More informationIntellectual Property
Policy Number: 6.017 Originating Office: Office of Research and Sponsored Programs Responsible Executive: Vice President for Research Date Issued: 07/13/12 Date Last Revised: 07/13/12 Intellectual Property
More informationBenefits of Protecting Your IP - Patents as Business Tools
Benefits of Protecting Your IP - Patents as Business Tools David Paton Patent Attorney Venner Shipley LLP 31st January 2013 John Chettle Patent Attorney Benefits of Protecting Your IP 1. Recent trends
More information25557 Corporate finance
25557 Corporate finance Lecture 1 Introduction and major theories: Corporate finance: Is about how corporations make financial decisions Is about money and markets, also about people Is also known as business
More informationSession 1, Monday, April 8 th (9:45-10:45)
Session 1, Monday, April 8 th (9:45-10:45) Time Value of Money and Capital Budgeting v2.0 2014 Association for Financial Professionals. All rights reserved. Session 3-1 Chapters Covered Time Value of Money:
More informationExcelBasics.pdf. Here is the URL for a very good website about Excel basics including the material covered in this primer.
Excel Primer for Finance Students John Byrd, November 2015. This primer assumes you can enter data and copy functions and equations between cells in Excel. If you aren t familiar with these basic skills
More informationAFP Financial Planning & Analysis Learning System Session 1, Monday, April 3 rd (9:45-10:45) Time Value of Money and Capital Budgeting
AFP Financial Planning & Analysis Learning System Session 1, Monday, April 3 rd (9:45-10:45) Time Value of Money and Capital Budgeting Chapters Covered Time Value of Money: Part I, Domain B Chapter 6 Net
More informationInternational Investment Agreement
RIETI International Seminar Investment Risk and International Investment Agreement July 25, 2008 Session Two: How to Make Investment Safe International Investment Agreement From a business perspective
More informationThe Three Approaches to Business Valuation
The Three Approaches to Business Valuation By Anja Bernier, President Efficient Evolutions LLC, Certified Business Appraiser (CBA) and Certified Valuation Analyst (CVA) There are three basic approaches
More informationSoftware Economics. Introduction to Business Case Analysis. Session 1
Software Economics Introduction to Business Case Analysis Session 1 Who am I? Sweden PhD Student in Computer Science (Business Process Management) Masters in Business Administration Worked with development
More informationLECTURE 9: Real Estate Investment Analysis (REIA)
LECTURE 9: Real Estate Investment Analysis (REIA) Overview Why REIA? Motivations for Investing Debt and Equity Financing Scenario To Invest or Not to Invest? Cash Flow Pro Formas Performance Measures NPV
More informationLecture 13 International Trade: Economics 181 Foreign Direct Investment (FDI) and Multinational Corporations (MNCs)
Lecture 13 International Trade: Economics 181 Foreign Direct Investment (FDI) and Multinational Corporations (MNCs) REMEMBER: Midterm NEXT TUESDAY. Office hours next week: Monday, 12 to 2 for Ann Harrison
More informationI did not use any unauthorized aid on this exam. Name: (PRINT) UM ID #: Signature:
Econ 102 Lecture 100 Exam I Form 1 ECON 102/100 February 10, 2005 Section Day Time Location GSI 101 F 2:30-4 205 DENN Jooyong 102 F 11:30-1 373 Lorch Sue 103 F 1-2:30 373 Lorch Jooyong 104 M 4-5:30 351
More informationP. V. V I S W A N A T H W I T H A L I T T L E H E L P F R O M J A K E F E L D M A N F O R A F I R S T C O U R S E I N F I N A N C E
1 P. V. V I S W A N A T H W I T H A L I T T L E H E L P F R O M J A K E F E L D M A N F O R A F I R S T C O U R S E I N F I N A N C E 2 The objective of a manager is to maximize NPV of cash flows and is
More informationHOW TO CALCULATE PRESENT VALUES
HOW TO CALCULATE PRESENT VALUES Chapter 2 Brealey, Myers, and Allen Principles of Corporate Finance 11 th Global Edition Basics of this chapter Cash Flows (and Free Cash Flows) Definition and why is it
More informationPRIME ACADEMY CAPITAL BUDGETING - 1 TIME VALUE OF MONEY THE EIGHT PRINCIPLES OF TIME VALUE
Capital Budgeting 11 CAPITAL BUDGETING - 1 Where should you put your money? In business you should put it in those assets that maximize wealth. How do you know that a project would maximize wealth? Enter
More informationChapter 2 Applying Time Value Concepts
Chapter 2 Applying Time Value Concepts Chapter Overview Albert Einstein, the renowned physicist whose theories of relativity formed the theoretical base for the utilization of atomic energy, called the
More informationReview of Financial Analysis Terms
Review of Financial Analysis Terms Financial Analysis Requirements Economic Evaluation of Potential TUR Techniques (310 CMR 50.46A) The TUR plan must include the discount rate, cost of capital, depreciation
More informationChapter 2 Applying Time Value Concepts
Chapter 2 Applying Time Value Concepts Chapter Overview Albert Einstein, the renowned physicist whose theories of relativity formed the theoretical base for the utilization of atomic energy, called the
More informationTHE COST VOLUME PROFIT APPROACH TO DECISIONS
C H A P T E R 8 THE COST VOLUME PROFIT APPROACH TO DECISIONS I N T R O D U C T I O N This chapter introduces the cost volume profit (CVP) method, which can assist management in evaluating current and future
More informationChapter 02 Test Bank - Static KEY
Chapter 02 Test Bank - Static KEY 1. The present value of $100 expected two years from today at a discount rate of 6 percent is A. $112.36. B. $106.00. C. $100.00. D. $89.00. 2. Present value is defined
More informationGlobal Financial Management
Global Financial Management Valuation of Cash Flows Investment Decisions and Capital Budgeting Copyright 2004. All Worldwide Rights Reserved. See Credits for permissions. Latest Revision: August 23, 2004
More informationCHAPTER 17 OPTIONS AND CORPORATE FINANCE
CHAPTER 17 OPTIONS AND CORPORATE FINANCE Answers to Concept Questions 1. A call option confers the right, without the obligation, to buy an asset at a given price on or before a given date. A put option
More informationSECTION HANDOUT #1 : Review of Topics
SETION HANDOUT # : Review of Topics MBA 0 October, 008 This handout contains some of the topics we have covered so far. You are not required to read it, but you may find some parts of it helpful when you
More informationCapital Budgeting CFA Exam Level-I Corporate Finance Module Dr. Bulent Aybar
Capital Budgeting CFA Exam Level-I Corporate Finance Module Dr. Bulent Aybar Professor of International Finance Capital Budgeting Agenda Define the capital budgeting process, explain the administrative
More informationPROFITING BANKING INDUSTRY S BIGGEST SECRET
PROFITING FROM THE BANKING INDUSTRY S BIGGEST SECRET A Consumer Guide Presented by: The Asher Institute FOR CONSUMERS A NON-PROFIT CONSUMER ADVOCACY ORGANIZATION 2003 INTRODUCTION The Asher Institute FOR
More informationChapter 2 Applying Time Value Concepts
Chapter 2 Applying Time Value Concepts Chapter Overview Albert Einstein, the renowned physicist whose theories of relativity formed the theoretical base for the utilization of atomic energy, called the
More information9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle
9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle 9.1 Current Assets and 9.1.1 Cash A firm should maintain as little cash as possible, because cash is a nonproductive asset. It earns no
More information*Efficient markets assumed
LECTURE 1 Introduction To Corporate Projects, Investments, and Major Theories Corporate Finance It is about how corporations make financial decisions. It is about money and markets, but also about people.
More informationLecture 6 Capital Budgeting Decision
Lecture 6 Capital Budgeting Decision The term capital refers to long-term assets used in production, while a budget is a plan that details projected inflows and outflows during some future period. Thus,
More informationLEAVE YOUR BUSINESS? IT S INEVITABLE WHITE PAPER
LEAVE YOUR BUSINESS? IT S INEVITABLE WHITE PAPER This White Paper contains an overview of the Exit Planning Process. We have White Papers describing, in detail, many of its elements. Please contact the
More informationToday I am. A. Ready for some serious learning. B. Enjoying being away from work. C. Hungry, skipped breakfast. D. Loving Tartu
Welcome Today I am A. Ready for some serious learning B. Enjoying being away from work C. Hungry, skipped breakfast D. Loving Tartu E. Tired, I just want to go home How many hours did you spend on this
More informationChapter 4. Discounted Cash Flow Valuation
Chapter 4 Discounted Cash Flow Valuation Appreciate the significance of compound vs. simple interest Describe and compute the future value and/or present value of a single cash flow or series of cash flows
More informationCHAPTER 9 NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA
CHAPTER 9 NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA Learning Objectives LO1 How to compute the net present value and why it is the best decision criterion. LO2 The payback rule and some of its shortcomings.
More informationIs it time for your country to consider the "patent box"?
Is it time for your country to consider the "patent box"? By Jim Shanahan PwC's Global R&D Tax Symposium on Designing a Blueprint for Reducing the After-Tax Cost of Global R&D Dublin, Ireland, May 23,
More informationWHAT IS CAPITAL BUDGETING?
WHAT IS CAPITAL BUDGETING? Capital budgeting is a required managerial tool. One duty of a financial manager is to choose investments with satisfactory cash flows and rates of return. Therefore, a financial
More informationIntroduction. The Political Environment. Political Risk The Political, Legal, and Regulatory Environments of Global Marketing
The Political, Legal, and Regulatory Environments of Global Marketing Global Marketing Chapter 5 Introduction The global marketer must comply with each nation s laws and regulations with respect to the
More informationCOPYRIGHTED MATERIAL. Time Value of Money Toolbox CHAPTER 1 INTRODUCTION CASH FLOWS
E1C01 12/08/2009 Page 1 CHAPTER 1 Time Value of Money Toolbox INTRODUCTION One of the most important tools used in corporate finance is present value mathematics. These techniques are used to evaluate
More information9 D/S of/for Labor. 9.1 Demand for Labor. Microeconomics I - Lecture #9, April 14, 2009
Microeconomics I - Lecture #9, April 14, 2009 9 D/S of/for Labor 9.1 Demand for Labor Demand for labor depends on the price of labor, price of output and production function. In optimum a firm employs
More information1. The real risk-free rate is the increment to purchasing power that the lender earns in order to induce him or her to forego current consumption.
Chapter 02 Determinants of Interest Rates True / False Questions 1. The real risk-free rate is the increment to purchasing power that the lender earns in order to induce him or her to forego current consumption.
More informationOverview of Transfer Pricing Regulations. CA Akshay Kenkre
Overview of Transfer Pricing Regulations CA Akshay Kenkre 1 What is Transfer Pricing What is Transfer Price? A Price at which one person transfers physical goods, services, tangible or/ and intangibles
More informationCorporate Finance Finance Ch t ap er 1: I t nves t men D i ec sions Albert Banal-Estanol
Corporate Finance Chapter : Investment tdecisions i Albert Banal-Estanol In this chapter Part (a): Compute projects cash flows : Computing earnings, and free cash flows Necessary inputs? Part (b): Evaluate
More informationChapter 9, Mathematics of Finance from Applied Finite Mathematics by Rupinder Sekhon was developed by OpenStax College, licensed by Rice University,
Chapter 9, Mathematics of Finance from Applied Finite Mathematics by Rupinder Sekhon was developed by OpenStax College, licensed by Rice University, and is available on the Connexions website. It is used
More informationChapter 4 The Time Value of Money
Chapter 4 The Time Value of Money Copyright 2011 Pearson Prentice Hall. All rights reserved. Chapter Outline 4.1 The Timeline 4.2 The Three Rules of Time Travel 4.3 Valuing a Stream of Cash Flows 4.4 Calculating
More informationDRAFT. 34 Profit. Key points
Key points 34 Profit 1. Calculation of gross profit, operating profit and net profit. 2. Statement of comprehensive income (profit and loss account). 3. Measuring profitability calculation of gross, operating
More informationTransfer Pricing Audits Indian experience.
Transfer Pricing Audits Indian experience. International Tax Conference - 2005 Vispi T. Patel Deloitte Haskins & Sells. Background of Indian TPR OECD s View Transfer pricing can deprive governments of
More informationLecture 3. Chapter 4: Allocating Resources Over Time
Lecture 3 Chapter 4: Allocating Resources Over Time 1 Introduction: Time Value of Money (TVM) $20 today is worth more than the expectation of $20 tomorrow because: a bank would pay interest on the $20
More informationChapter 6. Learning Objectives. Principals Applies in this Chapter. Time Value of Money
Chapter 6 Time Value of Money 1 Learning Objectives 1. Distinguish between an ordinary annuity and an annuity due, and calculate the present and future values of each. 2. Calculate the present value of
More informationA new design for the corporate income tax?
A new design for the corporate income tax? Michael Devereux Paris, October 17, 2013 Three issues 1. Why tax corporate profit, and what economic problems arise in attempting to do so? 2. Defining the domestic
More informationWEEK 7 Investment Appraisal -1
WEEK 7 Investment Appraisal -1 Learning Objectives Understand the nature and importance of investment decisions. Distinguish between discounted cash flow (DCF) and nondiscounted cash flow (non-dcf) techniques
More informationACCTG101 Revision MODULES 10 & 11 LITTLE NOTABLES EXCLUSIVE - VICKY TANG
ACCTG101 Revision MODULES 10 & 11 TIME VALUE OF MONEY & CAPITAL INVESTMENT MODULE 10 TIME VALUE OF MONEY Time Value of Money is the concept that cash flows of dollar amounts have different values at different
More informationLecture Wise Questions of ACC501 By Virtualians.pk
Lecture Wise Questions of ACC501 By Virtualians.pk Lecture No.23 Zero Growth Stocks? Zero Growth Stocks are referred to those stocks in which companies are provided fixed or constant amount of dividend
More informationChapter 11: Capital Budgeting: Decision Criteria
11-1 Chapter 11: Capital Budgeting: Decision Criteria Overview and vocabulary Methods Payback, discounted payback NPV IRR, MIRR Profitability Index Unequal lives Economic life 11-2 What is capital budgeting?
More informationThe Economics of Innovation Procurement
The Economics of Innovation Procurement 2nd SEREN3 Training for stakeholders on PCP/PPI in Secure Societies 30th of May 2017, Warsaw, Poland Dr. Anne Rainville Management Consultant, Vtrek Julianaplein
More informationMGT201 Financial Management All Subjective and Objective Solved Midterm Papers for preparation of Midterm Exam2012 Question No: 1 ( Marks: 1 ) - Please choose one companies invest in projects with negative
More informationManagerial Economics in a Global Economy 5/6 Edition
chapter 01 5/5/03 :57 PM Page 1 CHAPTER 1 THE NATURE AND SCOPE OF MANAGERIAL ECONOMICS 1-1 THE SCOPE OF MANAGERIAL ECONOMICS Definition of Managerial Economics Relationship to Economic Theory Relationship
More information: Monetary Economics and the European Union. Lecture 8. Instructor: Prof Robert Hill. The Costs and Benefits of Monetary Union II
320.326: Monetary Economics and the European Union Lecture 8 Instructor: Prof Robert Hill The Costs and Benefits of Monetary Union II De Grauwe Chapters 3, 4, 5 1 1. Countries in Trouble in the Eurozone
More informationA First Encounter with Capital Budgeting Rules
A First Encounter with Capital Budgeting Rules Chapter 4, slides 4.1 Brais Alvarez Pereira LdM, BUS 332 F: Principles of Finance, Spring 2016 April, 2016 Capital budgeting in the real world Video 1 Definition:
More informationFrequently Asked Questions Transparency International 2008 Bribe Payers Index
Frequently Asked Questions Transparency International 1. What is the Transparency International (BPI)? 2. Which countries are included in the 2008 BPI? 3. How is the 2008 BPI calculated? 4. Whose views
More informationOutline. 1. The Venture
Business Plan The business plan is a very basic document necessary to cover two communications. The first is to explain, for the benefit of the author (business person, entrepreneur), the vision for the
More informationInvestment Decision Criteria. Principles Applied in This Chapter. Disney s Capital Budgeting Decision
Investment Decision Criteria Chapter 11 1 Principles Applied in This Chapter Principle 1: Money Has a Time Value. Principle 2: There is a Risk-Return Tradeoff. Principle 3: Cash Flows Are the Source of
More informationCASH MANAGEMENT. After studying this chapter, the reader should be able to
C H A P T E R 1 1 CASH MANAGEMENT I N T R O D U C T I O N This chapter continues the discussion of cash flows. It illustrates the fact that net income shown on an income statement does not imply that there
More informationKey Topics for Today s Lecture
Key Topics for Today s Lecture Introduction to the language of the class Cash Flows Projects Firms Corporate Securities Common Stock (Equity) Preferred Shares Corporate Debt (Bonds) Derivatives M. Spiegel
More informationStudy Presentation. Vice President, OPORA RUSSIA. N.I. Zolotykh. July 9, 2010.
Study Presentation Vice President, OPORA RUSSIA N.I. Zolotykh July 9, 2010. 1 Study Partners RUSNANO T h e p r o j e c t w a s p e r f o r m e d b y : B a u m a n I n n o v a t I o n / S t r a t e g y
More informationMain Laws and Regulations for Foreign Investment in China Foreign investments in China are subject to a series of laws and regulations.
Setting up Business Easier Than It Looks Foreign investors can now determine an organizational structure according to the operations of their enterprises at their own discretion. Foreigners intending to
More informationFINANCE FOR EVERYONE SPREADSHEETS
FINANCE FOR EVERYONE SPREADSHEETS Some Important Stuff Make sure there are at least two decimals allowed in each cell. Otherwise rounding off may create problems in a multi-step problem Always enter the
More informationFundamentals of Trademark
Fundamentals of Trademark Categories of IP Rights Intellectual Properties Patent Trade Mark Industrial Design Copyrights Intangible assets Monopolistic right ( to make, sell or otherwise deals with) Limited
More informationTRANSLATIONAL GENOMICS RESEARCH INSTITUTE INTELLECTUAL PROPERTY POLICY 1, 2
TRANSLATIONAL GENOMICS RESEARCH INSTITUTE INTELLECTUAL PROPERTY POLICY 1, 2 1. BACKGROUND MISSION STATEMENT: This Intellectual Property Policy ( Policy ) is intended to set forth concisely the basic objectives
More informationFINANCE PRINCIPLES OF SCOTT BESLEY. .0 SOUTH-WESTERN <& CENGAGE Learning- EUGENE F. BRIGHAM University of Florida. University of South Florida
PRINCIPLES OF FINANCE SCOTT BESLEY University of South Florida EUGENE F. BRIGHAM University of Florida.0 SOUTH-WESTERN
More informationChapter 5. Finance 300 David Moore
Chapter 5 Finance 300 David Moore Time and Money This chapter is the first chapter on the most important skill in this course: how to move money through time. Timing is everything. The simple techniques
More informationChapter 9. Capital Budgeting Decision Models
Chapter 9 Capital Budgeting Decision Models Learning Objectives 1. Explain capital budgeting and differentiate between short-term and long-term budgeting decisions. 2. Explain the payback model and its
More informationGlobalization & the Multinational Firm
INTERNATIONAL FINANCIAL MANAGEMENT Seventh Edition EUN / RESNICK Globalization & the Multinational Firm Chapter Objectives: Understand why it is important to study international finance. 1 Chapter One
More informationMany decisions in operations management involve large
SUPPLEMENT Financial Analysis J LEARNING GOALS After reading this supplement, you should be able to: 1. Explain the time value of money concept. 2. Demonstrate the use of the net present value, internal
More informationMGT201 Current Online Solved 100 Quizzes By
MGT201 Current Online Solved 100 Quizzes By http://vustudents.ning.com Question # 1 Which if the following refers to capital budgeting? Investment in long-term liabilities Investment in fixed assets Investment
More informationEME 801: Published on EME 801: (https://www.e-education.psu.edu/eme801)
1 of 5 EME 801: Published on EME 801: (https://www.e-education.psu.edu/eme801) Home > Project Decision Metrics: Net Present Value Suppose that you were an electric utility considering two potential generation
More informationABSTRACT. Nivedita Haldar (FP/08/11)
ABSTRACT of the dissertation titled BILEVEL PROGRAMMING BASED MODELING FOR PRICING DECISIONS IN OFFSHORE MANUFACTURING CONTRACTS INVOLVING GREEN TAX Submitted by Nivedita Haldar (FP/08/11) Thesis Advisory
More informationCAPITAL BUDGETING AND THE INVESTMENT DECISION
C H A P T E R 1 2 CAPITAL BUDGETING AND THE INVESTMENT DECISION I N T R O D U C T I O N This chapter begins by discussing some of the problems associated with capital asset decisions, such as the long
More informationDifferential Cost Analysis for PowerPoint Presentation by LuAnn Bean Professor of Accounting Florida Institute of Technology
CHAPTER 7 Differential Cost Analysis for PowerPoint Presentation by LuAnn Bean Professor of Accounting Florida Institute of Technology Operating Decisions 2012 Cengage Learning. All Rights Reserved. May
More informationFinancial Markets and Institutions Midterm study guide Jon Faust Spring 2014
180.266 Financial Markets and Institutions Midterm study guide Jon Faust Spring 2014 The exam will have some questions involving definitions and some involving basic real world quantities. These will be
More informationEngineering Economics and Financial Accounting
Engineering Economics and Financial Accounting Unit 5: Accounting Major Topics are: Balance Sheet - Profit & Loss Statement - Evaluation of Investment decisions Average Rate of Return - Payback Period
More informationFinancial law reform: purpose and key questions
Conference on Cross-Jurisdictional Netting and Global Solutions Update on Netting in Asia May 12, 2011 London School of Economics and Political Science Peter M Werner Senior Director ISDA pwerner@isda.org
More informationCorporate Social Responsibility: Growth and History
Corporate Social Responsibility: Growth and History Item Type text; Electronic Thesis Authors Allison, Andrew Emerson Publisher The University of Arizona. Rights Copyright is held by the author. Digital
More informationTime Value of Money. PV of Multiple Cash Flows. Present Value & Discounting. Future Value & Compounding. PV of Multiple Cash Flows
Chapter 4-6 Time Value of Money Net Present Value Capital Budgeting Konan Chan Financial Management, 2018 Time Value of Money Present values Future values Annuity and Perpetuity APR vs. EAR Five factor
More informationChapter 4-6 Time Value of Money Net Present Value Capital Budgeting. Konan Chan Financial Management, Time Value of Money
Chapter 4-6 Time Value of Money Net Present Value Capital Budgeting Konan Chan Financial Management, 2018 Time Value of Money Present values Future values Annuity and Perpetuity APR vs. EAR Five factor
More informationINTELLECTUAL PROPERTY ISSUES OF THE STARTUP VENTURE. TEIGE P. SHEEHAN, Ph.D.
INTELLECTUAL PROPERTY ISSUES OF THE STARTUP VENTURE by TEIGE P. SHEEHAN, Ph.D. Heslin Rothenberg Farley & Mesiti, P.C. Albany, NY 203 204 Intellectual Property Issues of the Startup Venture Teige P. Sheehan,
More informationInfinite Banking How it Works By Gary Vande Linde
Why I am Interested in the Concept Infinite Banking How it Works By Gary Vande Linde Three years ago I left a large company, where I had served as the division engineer for the past twelve years, to become
More informationMath of Finance Exponential & Power Functions
The Right Stuff: Appropriate Mathematics for All Students Promoting the use of materials that engage students in meaningful activities that promote the effective use of technology to support mathematics,
More informationSuccessful U.S. Market Entry Techniques. November 29, 2011
Successful U.S. Market Entry Techniques November 29, 2011 Introductions Jennifer Vessels, CEO Next Step Fred Greguras, Partner K&L Gates Dean (Kip) Witter III, Vice President The Brenner Group Tell us
More informationPeriod 3 MBA Program January February MACROECONOMICS IN THE GLOBAL ECONOMY Core Course. Professor Ilian Mihov
Period 3 MBA Program January February 2008 MACROECONOMICS IN THE GLOBAL ECONOMY Core Course Professor SOLUTIONS Final Exam February 25, 2008 Time: 09:00 12:00 Note: These are only suggested solutions.
More informationADDING THE MACD Forex Strategy Master Published by Old Tree Publishing CC Suite 509, Private Bag X503 Northway, 4065, KZN, ZA www.oldtreepublishing.com Copyright 2013 by Old Tree Publishing CC, KZN, ZA
More informationAttracting FDI and benefiting from it: challenges for the least developed countries
Columbia University From the SelectedWorks of Karl P. Sauvant November 24, 2014 Attracting FDI and benefiting from it: challenges for the least developed countries Karl P. Sauvant, Columbia University
More informationPM tutor. Advanced Cost Theory. Presented by Dipo Tepede, PMP, SSBB, MBA. Empowering Excellence. Powered by POeT Solvers Limited
PM tutor Empowering Excellence Advanced Cost Theory Presented by Dipo Tepede, PMP, SSBB, MBA This presentation is copyright 2009 by POeT Solvers Limited. All rights reserved. This presentation is protected
More informationIntroduction to Capital
Introduction to Capital What is Capital? Money invested in business to generate income The money, property, and other valuables which collectively represent the wealth of an individual or business The
More informationCHAPTER 2 TIME VALUE OF MONEY
CHAPTER 2 TIME VALUE OF MONEY True/False Easy: (2.2) Compounding Answer: a EASY 1. One potential benefit from starting to invest early for retirement is that the investor can expect greater benefits from
More informationDisclaimer: This resource package is for studying purposes only EDUCATION
Disclaimer: This resource package is for studying purposes only EDUCATION Chapter 1: The Corporation The Three Types of Firms -Sole Proprietorships -Owned and ran by one person -Owner has unlimited liability
More information