Manav's lecture notes on misrepresentation - good shit. Anyone got mistake notes?,,,
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Taken last 2014, 2nd semesterFull description
HVAC
hheat exchangers
Lecture on considerationFull description
This document contains detailed design procedure for a RCC frame building. Analysis and design has been carried out for gravity loading as well as earthquake loading.Full description
The key responsibilities of the CFO The two main parts of CF are allocation (inestment! an" financing# correspon"in$ to the %&L si"es of the balance sheet' The ultimate obectie is to ma)imi*e the sharehol"ers+ wealth, achiee the hi$hest return on the proects an" ensure the cheapest financin$' financin$' aluation of the inestment proects is base" on the "iscounte" cash flows# which are "ifferent from the accountin$ profits (e'$' because of "epreciation!' "epreciation!' The real options approach takes into account that mana$ers can influence the CFs after the be$innin$ of the proect' %pplyin$ similar metho"s# one can alue the company' The company can be restructure" from priate to a public one ia IPO# an" ice ersa' %nother type of structur structural al chan$e comes from MAs' The company+s $oal is to ac.uire the companies brin$in$ syner$y $ains an" those un"eralue" "ue to the inefficient mana$ement' The best "efence from the ac.uisition is to ma)imi*e its own alue' The $oal of cor!orate go"ernance is to internali*e the e)ternal effects# balance the economic interests of all stakehol"ers' /n well-functionin$ financial markets# this ma)imi*es sharehol"er alue' T#!ical CF $uestions, • ow to measure the proect+s worth for the company1 • %re companies market prices ustifie"1 (e'$'# "ot-coms! • ow to choose amon$ the proects $ien the bu"$et constraint an" e)ternal effects1 • ow to account for risks associate" with the proect1 3ystematic s company-specific risks o • %re risks always ba"1 • /s it $oo" to hae olatile oil prices1 4es# if mana$ers hae fle)ibility in the future "ecisions' o • 3houl" we inest now in a proect# which seems unprofitable (has ne$atie 67!1 6robably# yes' /t may yiel" hi$h profit in certain future scenarios (oil pipeline! o • 3houl" we inest now in a proect# which is profitable (has positie 67!1 6robably# not' /t may be een more profitable ne)t perio" ($ol" e)traction! o • 3houl" we $ie mana$ers hi$her salaries or hi$her bonuses1 8onuses encoura$e hi$her performance# performance# but may also lea" to the manipulations manipulations an" e)cessie o risk-takin$' • 9oes it matter how to finance the proect, by "ebt or by e.uity1 • :oul" you like the company to hae much "ebt1 4es# to minimi*e ta)es an" to "iscipline the mana$ers' ot too much# to aoi" bankruptcy' o • 3houl" the company borrow money from banks or issue bon"s1 The company can rene$otiate the terms of bank cre"it' o • :oul" you like the company to pay hi$h "ii"en"s1 (e'$'# ;icrosoft! 4es# if too much mana$erial "iscretion (3ur$ut!' o# because of "ouble ta)ation an" si$nallin$ o that the company has no aluable in proects' • ow will the market react to the share buyback1 The company si$nals that its shares are un"eralue"' o
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ow will the market react to the new e.uity issue1 =sually ne$atiely, either the company+s shares are oeralue"# or it nee"s to finance a new o in proect' ow shoul" the company communicate with the market1 %lways proi"e precise info in time1 :hat "ries the company+s "ecision to $o public1 :hy are there har"ly any /6Os in >ussia1 :oul" you like the company to $row ia ac.uisitions1 4es# if the main motiation comes form syner$y $ains# an" not empire-buil"in$' o
3pecifics of corporation 9o not take the current form of corporations an" stock markets as $ien# it is an en"o$enous outcome? %"anta$es of cor!oration in comparison with sole !ro!rietorshi! an" !artnershi! , • Lt" liability, lesser risks for inestors Crucial for "eelopment of stock markets an" "iersification o • asy transfer of ownership 6romotes li.ui"ity o • =nlimite" life ;akes it easier to attract financin$ o 9isa"anta$es, • 3eparation of ownership an" control# the a$ency conflict 3ole" in two ways, =3 s @ermany o • 9ouble ta)ation istory,
The Obectie in Corporate Finance “If you don’t know where you are going, it does not matter how you get there”