Melden
Teilen
Empfohlen
Ch7 Ching
The document discusses transforming external relationships with customers through demand-driven supply chains enabled by information technology. It emphasizes the importance of customers, segmentation of customers based on their value contribution, and using IT to better serve customer needs through electronic catalogs, customer self-service systems, and effective channel management.
Chap010
The document discusses the Capital Asset Pricing Model (CAPM) and its relationship between risk and expected return. It defines key terms like expected return, variance, standard deviation, covariance, correlation, diversification, systematic and unsystematic risk. It explains that a security's risk is measured by its beta, which represents its non-diversifiable risk related to market movements. The CAPM holds that the expected return of a security or portfolio equals the risk-free rate plus a risk premium that is proportional to the security's systematic risk relative to the market.
Chap012
The document discusses the cost of equity capital and methods for estimating it. It covers estimating beta based on a company's sensitivity to market returns. Determinants of beta include business risk from cyclicality and operating leverage, as well as financial risk from leverage. The weighted average cost of capital incorporates both equity and debt costs. Firms can potentially lower their cost of capital by increasing stock liquidity through greater disclosure, reducing information gaps.
Chap005
This document discusses how to value bonds and stocks. It defines bonds, how bond values are determined from present values of coupon payments and par value, and how bond prices are inversely related to market interest rates. It also discusses how to value common stocks based on present values of expected future dividends and capital gains, using dividend discount models for stocks with zero, constant, or differential growth. Growth opportunities can increase stock value if positive NPV projects are undertaken. The price-earnings ratio is also discussed.
Chap004
The document discusses discounted cash flow valuation and various formulas used to calculate future value, present value, and net present value over single and multiple periods. It also covers perpetuities, growing perpetuities, and annuities. Key concepts include using interest rates to discount future cash flows to present value and formulas to calculate the future or present value of cash flows that are constant, growing, or occurring over a fixed number of periods.
Chap005
This document discusses how to value bonds and stocks. It defines bonds, how bond values are determined from present values of coupon payments and par value, and how bond prices are inversely related to market interest rates. It also discusses how to value common stocks based on present values of expected future dividends and capital gains, using dividend discount models for stocks with zero, constant, or differential growth. Growth opportunities can increase stock value if positive NPV projects are undertaken. The price-earnings ratio is also discussed.
Empfohlen
Ch7 Ching
The document discusses transforming external relationships with customers through demand-driven supply chains enabled by information technology. It emphasizes the importance of customers, segmentation of customers based on their value contribution, and using IT to better serve customer needs through electronic catalogs, customer self-service systems, and effective channel management.
Chap010
The document discusses the Capital Asset Pricing Model (CAPM) and its relationship between risk and expected return. It defines key terms like expected return, variance, standard deviation, covariance, correlation, diversification, systematic and unsystematic risk. It explains that a security's risk is measured by its beta, which represents its non-diversifiable risk related to market movements. The CAPM holds that the expected return of a security or portfolio equals the risk-free rate plus a risk premium that is proportional to the security's systematic risk relative to the market.
Chap012
The document discusses the cost of equity capital and methods for estimating it. It covers estimating beta based on a company's sensitivity to market returns. Determinants of beta include business risk from cyclicality and operating leverage, as well as financial risk from leverage. The weighted average cost of capital incorporates both equity and debt costs. Firms can potentially lower their cost of capital by increasing stock liquidity through greater disclosure, reducing information gaps.
Chap005
This document discusses how to value bonds and stocks. It defines bonds, how bond values are determined from present values of coupon payments and par value, and how bond prices are inversely related to market interest rates. It also discusses how to value common stocks based on present values of expected future dividends and capital gains, using dividend discount models for stocks with zero, constant, or differential growth. Growth opportunities can increase stock value if positive NPV projects are undertaken. The price-earnings ratio is also discussed.
Chap004
The document discusses discounted cash flow valuation and various formulas used to calculate future value, present value, and net present value over single and multiple periods. It also covers perpetuities, growing perpetuities, and annuities. Key concepts include using interest rates to discount future cash flows to present value and formulas to calculate the future or present value of cash flows that are constant, growing, or occurring over a fixed number of periods.
Chap005
This document discusses how to value bonds and stocks. It defines bonds, how bond values are determined from present values of coupon payments and par value, and how bond prices are inversely related to market interest rates. It also discusses how to value common stocks based on present values of expected future dividends and capital gains, using dividend discount models for stocks with zero, constant, or differential growth. Growth opportunities can increase stock value if positive NPV projects are undertaken. The price-earnings ratio is also discussed.
Chap007
The document discusses several methods for evaluating capital investment decisions, including incremental cash flows, inflation adjustments, and investments with unequal lives. It provides an example of evaluating a bowling ball machine investment over 5 years using cash flows, depreciation, and net income. For investments with unequal lives, it recommends using the equivalent annual cost method to convert costs to equal annual amounts to facilitate comparison.
Chap009
Over the period of 1926-2004, large company stocks provided an average annual return of 12.3% with a standard deviation of 20.2%, while small company stocks returned 17.4% annually with greater volatility. Long-term corporate and government bonds offered lower but steadier returns than stocks, with corporate bonds returning 6.2% on average and government bonds at 5.8%. Treasury bills returned 3.8% annually with the lowest risk compared to other major asset classes.
Chap006
The document discusses several methods for evaluating capital investment projects, including net present value (NPV), internal rate of return (IRR), payback period, and profitability index. It explains the basic calculations and advantages/disadvantages of each method. NPV is presented as the preferred method since it considers all cash flows and their timing. IRR can also be useful but has limitations when projects have multiple rates of return or differing scales.
Chap008
The document discusses several capital budgeting techniques: sensitivity analysis, which examines how changes in assumptions impact NPV; scenario analysis, which considers multiple forecasts simultaneously; and break-even analysis, which determines the sales needed to cover costs. It also discusses real options, noting that NPV underestimates a project's value since managers can adjust in response to changes. Decision trees are presented as a tool to analyze projects with uncertain outcomes.
Chap003
This document discusses financial statement analysis and long-term planning. It covers calculating common-size financial statements to facilitate comparison, different types of ratio analysis including liquidity, leverage, asset management and profitability ratios, and using the Du Pont identity to examine a company's return on equity. Ratios need context and should be compared over time or to peer companies to be meaningful.
Chap001
This document provides an introduction to key concepts in corporate finance. It discusses the role of the financial manager, the goal of financial management which is to maximize shareholder wealth, the agency problem between owners and managers, and various types of financial markets. The chapter outline covers topics including what is corporate finance, the corporate firm, the goal of financial management, the agency problem, and financial markets.
Weitere ähnliche Inhalte
Mehr von Yuan Kuei Huang
Chap007
The document discusses several methods for evaluating capital investment decisions, including incremental cash flows, inflation adjustments, and investments with unequal lives. It provides an example of evaluating a bowling ball machine investment over 5 years using cash flows, depreciation, and net income. For investments with unequal lives, it recommends using the equivalent annual cost method to convert costs to equal annual amounts to facilitate comparison.
Chap009
Over the period of 1926-2004, large company stocks provided an average annual return of 12.3% with a standard deviation of 20.2%, while small company stocks returned 17.4% annually with greater volatility. Long-term corporate and government bonds offered lower but steadier returns than stocks, with corporate bonds returning 6.2% on average and government bonds at 5.8%. Treasury bills returned 3.8% annually with the lowest risk compared to other major asset classes.
Chap006
The document discusses several methods for evaluating capital investment projects, including net present value (NPV), internal rate of return (IRR), payback period, and profitability index. It explains the basic calculations and advantages/disadvantages of each method. NPV is presented as the preferred method since it considers all cash flows and their timing. IRR can also be useful but has limitations when projects have multiple rates of return or differing scales.
Chap008
The document discusses several capital budgeting techniques: sensitivity analysis, which examines how changes in assumptions impact NPV; scenario analysis, which considers multiple forecasts simultaneously; and break-even analysis, which determines the sales needed to cover costs. It also discusses real options, noting that NPV underestimates a project's value since managers can adjust in response to changes. Decision trees are presented as a tool to analyze projects with uncertain outcomes.
Chap003
This document discusses financial statement analysis and long-term planning. It covers calculating common-size financial statements to facilitate comparison, different types of ratio analysis including liquidity, leverage, asset management and profitability ratios, and using the Du Pont identity to examine a company's return on equity. Ratios need context and should be compared over time or to peer companies to be meaningful.
Chap001
This document provides an introduction to key concepts in corporate finance. It discusses the role of the financial manager, the goal of financial management which is to maximize shareholder wealth, the agency problem between owners and managers, and various types of financial markets. The chapter outline covers topics including what is corporate finance, the corporate firm, the goal of financial management, the agency problem, and financial markets.