UniMelb

Semester 1, 2018


H1 Exam Notes

33 pages

10,932 words

$29.00

Description

Comprehensive exam notes with self-made explanatory diagrams
Topic 1: Raising capital – Equity 2
Equity characteristics 2
Initial public offerings 2
seasoned equity offerings 4
Topic 2: Raising capital – Debt and leasing 6
The nature of debt 6
Leasing 7
Topic 3: Issues with WACC and capital structure policy 9
WACC 9
Capital structure 10
topic 4: Payout policy 13
MM Dividend irrelevance theory 13
Factors affecting payment of dividends 14
Share buybacks 15
Topic 5: Advanced topics in capital budgeting: Comparing mutually exclusive projects with different lives 16
Constant chain of replacement (CCR) 16
Retirement decisions 18
Replacement decisions 18
Conflicts between methods 19
Topic 6: Advanced topics in capital budgeting: Sensitivity, break-even and decision tree analyses 19
sensitivity analysis 19
Break-even analysis 20
simulation analysis 20
decision-tree analysis 21
Topic 7: Real options analysis 22
Three Common Examples of real options 22
Topic 8: Analysis of takeovers 25
types of acquisitions: Terminology 25
method of payment 25
Regulation of takeovers 26
takeover defences 27
Financial evaluation of a takeover 28
economic rationale for takeovers 29
empirical evidence 30
Topic 9: Corporate restructuring 31
rationale for restructuring 31
alternative types of restructuring 31
empirical evidence for restructuring 32
topic 10: Risk management 33
reasons for hedging 33
Risk management methods 34

Author

Ava

Campus

UniMelb, Parkville

Member since

March 2016