...[pic] Master in Business Administration COURSE SYLLABUS Investment Banking And Structured Finance Analytics Course Code: IBSFA Faculty: Prof. E. B. Perez Course Description This is an advanced finance course suited for finance majors. However, the focus is on the practice and business of investment banking. Corporate finance skills are assumed, as well as concepts regarding structured finance. Grading Class Participation 50% Class Presentation 50% Course Outline |Session |Cases, Readings and Exercises | | | | |1 |Case: CML Group, Inc. (A) and (B) | | | | | |Session 1 CML Group, Inc. (A) and (B); the (C) for class distribution. | | |2 Hutchison-Whampoa LTD - Yankee Bond Offering | | |3 Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) ...
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...CALCULATOR KEYSTROKES FOR THE HP-10BII [pic] ******* NOTE: The HP calculators come from the factory with the PMTS/YR set to 12. Change this setting to 1 PMT/YR by going to #6 below. Change this setting before you do any of the time value of money problems!!!! You only have to change the PMT/YR setting one time! ********* GENERAL: Note that every HP-10BII calculator key has two functions, the main ones are in WHITE LETTERS and a second function in ORANGE. To access the second function, you simply enter the ORANGE key first, and then press the key to access the function in ORANGE. There is also a PURPLE button, which accesses some statistical functions that we will not be using in this class. In the examples below, the slash symbol: / is used to separate keystrokes 1. SETTING THE NUMBER OF DECIMAL PLACES: Orange Key / = Key (DISP) / Number of desired decimal places Examples: Orange Key / = / 2 (to set display to two places, good for bond prices, e.g. $975.42) Orange Key / = / 4 (to set display to four places, good for ex-rates, e.g. $1.5074 / £) NOTE: Setting to two decimal places is not appropriate when calculating answers involving certain percentages or interest rates. For example, suppose your answer is an interest rate: .0851, or 8.51%. If your calculator is set to two decimal places, it will round your answer to .09 or 9%, which is almost .5% away from 8.51%. Be sure in this case that you set your calculator to display three or four decimal places...
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...TAX Expanding your horizons? A guide to setting up business across the Middle East and North Africa region KPMG E x p a n d i n g y o u r h o r i z o n s ? A guide to setting up business across the Middle East and North Africa region E x p a n d i n g y o u r h o r i z o n s ? A guide to setting up business across the Middle East and North Africa region Contents Pages Introduction 1 Algeria 3 Bahrain 8 Egypt 12 Iran 17 Jordan 20 Kuwait 23 Lebanon 26 Morocco 30 Sultanate Of Oman 36 Qatar 41 Kingdom Of Saudi Arabia 47 Sudan 51 Syria 55 Tunisia 58 United Arab Emirates 62 Yemen 66 E x p a n d i n g y o u r h o r i z o n s ? A guide to setting up business across the Middle East and North Africa region Introduction The Middle East / North Africa (“MENA”) region is one exemplified by inherent diversity. Such variation is widely demonstrated in the array of culture, language, geography and economics. Stretching from Morocco to Iran, each country has its own distinct makeup of natural resources and global outlook. As an inevitable result, political and economic events of recent decades have affected the representative nations in dramatically different ways. Certain countries have enjoyed the benefits of significant natural resources (e.g., substantial oil reserves) while others have undergone political changes that have seen their respective...
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...Academy of Management Journal 2012, Vol. 55, No. 1, 213–233. http://dx.doi.org/10.5465/amj.2009.0530 OFFSETTING ILLEGITIMACY? HOW PRESSURES FROM SECURITIES ANALYSTS INFLUENCE INCUMBENTS IN THE FACE OF NEW TECHNOLOGIES MARY J. BENNER University of Minnesota RAM RANGANATHAN University of Pennsylvania We study how analysts’ recommendations affect firms’ strategies during radical technological shifts. We find, from our study of firms in three industries undergoing technological change, that analysts’ recommendations trigger changes in strategic investments during periods of uncertain technological change. We also find that firms that make high investments despite negative analysts’ recommendations announce a higher value of share repurchases, an action that may offset the growing illegitimacy of these increased investments by signaling alignment with shareholders’ interests. Radical technological changes provide a source of exogenous variation that contributes to explanation of how firms balance technological pressures for adaptation and institutional pressures for legitimacy. The challenges and opportunities for firms faced with technological changes in their environments have been documented in a large body of organization and strategy research (e.g., Agarwal & Helfat, 2009; Christensen & Bower, 1996; Cooper & Smith, 1992; Henderson & Clark, 1990; Tushman & Anderson, 1986). Prior research has explored the difficulties firms face developing the new knowledge and capabilities required...
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...design and computer-aided manufacturing (CAD/CAM) equipment manufacturer needed to decide whether to pay out dividends to the firm’s shareholders, or to repurchase stock. If Swenson chose to pay out dividends, she would have to also decide upon the magnitude of the payout. A subsidiary question is whether the firm should embark on a campaign of corporate-image advertising, and change its corporate name to reflect its new outlook. The case serves as an omnibus review of the many practical aspects of the dividend and share buyback decisions, including (1) signaling effects, (2) clientele effects, and (3) the finance and investment implications of increasing dividend payouts and share repurchase decisions. This case can follow a treatment of the Miller-Modigliani[1] dividend-irrelevance theorem and serves to highlight practical considerations to consider when setting a firm’s dividend policy. Suggested Questions 1. In theory, to fund an increased dividend payout or a stock buyback, a firm might invest less, borrow more, or issue more stock. Which of those three elements is Gainesboro’s management willing to vary, and which elements remain fixed as a matter of the company’s policy? 2. What happens to Gainesboro’s financing need and unused debt capacity if: a. no dividends are paid? b. a 20% payout is pursued? c. a 40% payout is pursued? d. a residual payout policy is pursued? Note that case Exhibit 8 presents an estimate of the amount...
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...Introduction 4 Research Findings 5 History of the FASB 5 Requirements Imposed by the FASB on Public Corporations 6 Impact of the FASB on the Investment Community and their Satisfaction with the FASB Standards 6 Recommendations 7 Conclusion 8 References 9 Executive Summary The purpose of this research is to provide a report to Acme Company management on the accounting and reporting standards of the Financial Accounting Standards Board (FASB) and the impact that the FASB will have on Acme Company. This research covers the history and goals of the FASB, the requirements imposed by the FASB on public corporations, and the impact that the FASB has on the investment community and their satisfaction with the FASB standards. The FASB was formed in the early 1970s, when it became evident that there was a real need for a clear, concise, accurate, and uniform financial reporting system. The FASB standards are known as GAAP, or Generally Accepted Accounting Principles. Adherence to these principles by publicly traded companies is required by and enforced by the Securities and Exchange Commission (SEC). GAAP is based on consistency, reliability, relevance, and comparability which help to ensure that the reports provided to all investors and creditors contain credible and accurate information. The investment community relies heavily upon the SEC and the FASB to continually monitor financial reporting systems. As times change, reporting methods need to...
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...of a company over a partnership and sole trader do not include which of the following? a. Members are able to sell their shares at any time to another person without having to obtain permission from the other members. b. Members are liable for only a limited amount of the company’s debts. c. A company has a legal existence distinct from its owners. *d. A company is only entitled to raise small amounts of cash by issuing shares. Correct answer: d Learning Objective 1.1 ~ summarise the nature and attributes of a company 2. In Australia, the Corporations Act 2001 is administered by the: a. Australian Securities Exchange. b. Australian Accounting Research Foundation. *c. Australian Securities and Investments Commission. d. Securities and Exchange Commission. Correct answer: c Learning Objective 1.1 ~ summarise the nature and attributes of a company 3. The two main types of companies permitted to be registered under the Corporations Act 2001 are a: a. private company, and a proprietary company. b. public company, and a trade union. *c. proprietary company, and a public company. d. proprietary company, and a partnership. Correct answer: c Learning Objective 1.2 ~ discuss the different types of companies which may be formed under the Corporations Act 2001 4. According to the Corporations Act 2001, a small proprietary company is one which satisfies at least two of the following tests: it must have consolidated...
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...these firms. As a consequence of an increasing reliance on tightly-integrated foreign operations, a parallel world of finance has been opened within every multinational firm and this world has, heretofore, been overlooked. The course materials are designed to address the many aspects of financial decision making within global firms prompted by these changes that are not addressed in traditional materials. The paper provides an overview of the structure of the course and its seven modules with particular emphasis on the three modules that constitute the core of the course. The paper also describes an analytical framework that has been developed through the creation of the course materials to guide critical financial decisions on financing, investment, risk management and incentive management within a multinational firm. This framework emphasizes the need to reconcile conflicting forces in order for multinational firms to gain competitive advantage from their internal capital markets. The paper concludes with a discussion of the course's pedagogical approach and detailed descriptions of all the course materials, including 19 case studies, corresponding teaching notes, several module notes and supplementary materials. Mark Veblen, Kathleen Luchs and Claire Gilbert provided excellent research assistance in the process of writing these cases and the course overview note. Seminar participants at the HBS CORE seminar provided particularly helpful comments and...
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...be in the best interest of employers to pay wages higher than their workers'reservation wage.H. The natural rate of unemployment is unaffected by policy change. AnswerA. False. The participation rate has increased over time.B. False.C. False.D. True.E. False.F. Uncertain/False. The degree of bargaining power depends on the nature of the joband the employee’s skills.G. True.H. False. Page 2 2 Question 2. (Ch6. Q3)The natural rate of unemploymentSuppose that the markup of goods prices over marginal cost is 5%, and that the wage settingequation is W = P (1 - u )A. What is the real wage, as determined by the price setting equation?B. What is the natural rate of unemployment?C. Suppose that the markup of prices over costs increases to 10%. What happens to thenatural rate of unemployment? Explain the logic behind your answer. Answer a. W/P=1/(1+μ)=1/1.05=.952b. Wage setting: u=1-W/P=4.8%c. W/P=1/1.1=.91; u=1-.91=9%. The increase in the markup lowers the real wage.Algebraically, from the...
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...as instruments enhancing the acceptability and credibility of transformation policies, attracting domestic and foreign investment and also for the opening upon the economy. SEZs in India seek to promote the value addition component in exports, generate employment as well as mobilize foreign exchange. Globally, many countries initiated Free Trade Agreements (FTAs)which eventually led to a spurt in investments in infrastructure developments for Free Trade Zones (FTZs) and SEZs. A close examination of the evolution of SEZs in countries with similar economies as India eg; China, Iran, UAE and Jordan, will help us to understand their success stories and thereby implement those factors, in order to curb the SEZ bottlenecks faced by India today. The Shenzhen SEZ in China is a perfect example of a SEZ success story. In India, the government has been proactive in the development of SEZs. They have formulated policies, reviewed them occasionally and also ensured that ample facilities are provided to the SEZ developers as well as the companies setting up units in SEZs. These favorable conditions resulted in the biggest ever corporate rush for the development of SEZs in India. Over 234 companies received formal approval, 162 companies received in-principle approval and 100 companies received notification to set up SEZs. The Indian government is expecting an investment to the tune of Rs.53,561 crore (USD 13274 million) and an additional job creation for 15,75,452 individuals in SEZs by...
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...CHAPTER 1 Introduction EASY (definitional) 1.1 Historically, the primary motive for U.S. multinationals to produce abroad has been to a) lower costs b) respond more quickly to the marketplace c) avoid trade barriers d) gain tax benefits Ans: b Section: evolution of multinational Level: Easy 1.2 The primary objective of the multinational corporation is to a.) maximize shareholder wealth b) maximize world production c) minimize debt d) minimize the cost of doing business globally Ans: a Section: Multinational Financial Management: Theory and Practice Level: Easy 3. ____________ is defined as the purchase of assets or commodities on one market for immediate resale on another in order to profit form a price discrepancy. a) internationalization b) arbitrage c) financing d) total risk Ans: b Section: evolution of multinational Level: Easy 4. The value of good financial management is ___________ in the global markets because of the much greater probability of market imperfections and multiple tax rates. a) minimized b) neutralized c) enhanced d) arbitraged away Ans: c Section: role of the financial executive Level: Easy 5. When a firm operates globally it offers advantages such as a) greater political power at home b) bless taxes on its profits c) greater negotiating power with foreign minority groups d) greater negotiating power with labor unions Ans: d Section: The rise of the MNC ...
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...experiment with redical economic reforms on a localise basis, introducing reforms that a difficult to implement at the national lavel, given the country large size and social disparity. The units in the zone have to be a net foreign exchange earner but they shall not be subjected to any predetermined value addition or minimum export performance requirement. All the laws and regulations related to labour, custom, environment clearances, taxation, FDIs etc. in the zones have been sufficiently relaxed or done away with and have been designed to make units globally competitive. This draft report is prepared for setting up Special Economic Zone NOIDA in Ghaziabad district in NOIDA in the state of Uttar Pradesh. The draft report is being prepared by New Okhla Industrial Development Authority based on the report prepared by consultants for the Govt. of UP for setting up Taj Special Economic Zone is District Bulandshahar in the State of Uttar Pradesh. SEZs - A global Overview: Most of the countries in the world have ridden SEZ/FTZ vehicle in attracting FDI, increasing international trade and attaining over all economic development Since 1950's most of the countries in the world have adopted export zone for example US, Puerto Rico, Taiwan, Singapore, Ireland, Mexico, Kore, Dubai, UAE and currently Coastal China for faster economic development of the region SEZ models have been implemented in more than 100...
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...pecuniary gains: ................................................... 3 ð Determination of employment in the short period: ................................................................. 3 ð The rudiments of a theory of expenditure and critique of Say’s law: ....................................... 4 ð A more detailed theory of expenditure: .................................................................................. 4 ð Uncertainty, expectation and confidence: ............................................................................... 4 ð Investment, asset choice and liquidity preference: ................................................................... 4 ð Employment and the essential properties of money: ............................................................... 4 ð Potential instability: ................................................................................................................ 5 ð Investments, saving and banking system:................................................................................. 5 conclusion: ..................................................................................................................................... 5 Page 1 of 5 Keynes’s “GENERAL THEORY” valid only for modern capitalism? This article focuses on the interpretation that restricts the applicability of Keynes General theory for modern capitalism. It makes his...
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...Richman Investments has decided to expand their business. We have been given their new growth projections of 10,000 employees in 20 countries, with 5,000 located within the U.S. Richman have also established eight branch offices located throughout the U.S. and have designated Phoenix, AZ being the main headquarters. With this scenario, I intend to design a remote access control policy for all systems, applications and data access within Richman Investments. With so many different modes of Access Control to choose from it is my assessment that by choosing only one model would not be appropriate for Richman Investments. My recommendation would be a combination of multiple Access Control Models that overlap to provide maximum coverage and overall security. Here are my suggestions for access controls. Role Based Access Control or RBAC, this will work well with the Non-Discretionary Access Control model, which will be detailed in the next paragraph. RBAC is defined as setting permissions or granting access to a group of people with the same job roles or responsibilities. With many different locations along with many different users it is important to identify the different users and different workstations within this network. Every effort should be dedicated towards preventing user to access information they should not have access to. Non-Discretionary Access Control is defined as controls that are monitored by a security administrator. While RBAC identifies those with permissions...
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...1) Based on the first three paragraphs of the case, explain Beta Management Company's (BMC) investment strategy. Is it compatible with market efficiency theories? BMC’s Investment Strategy To enhance returns and reduce risks is a general objective of risk-averse investors and shouldn’t be considered an investment strategy proper. BMC follows a market timing investment strategy based on two portfolios: the Vanguard Index and money market (i.e., short-term) instruments. When BMC expects the market to rise, it transfers its assets from the money market to the Index (up to a maximum of 99% of total assets), seeking to obtain capital gains; when BMC expects the market to fall, it transfers back the assets from the Index to the money market instruments (down to a minimum of 50%), so as to avoid capital losses. By setting a floor of 50% on the investment on the Index, BMC endeavours to maintain at all times a return spread so as to “enhance returns”, while seeking to partly capitalize on unpredicted rises (at the cost of losses if the market behaves as predicted). By setting a very high ceiling for the investment in the Index (99%), BMC is willing to take on extra risk to try to fully capitalize on predicted rises. The investment strategy has thus some aggressive elements in it. The objective of “risk reduction” might better accomplished by setting both a lower ceiling and, particularly, a lower floor. Advantages of the Vanguard Index: - Low transaction costs (important in a market...
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