TAILIEUCHUNG - Lecture Investment analysis & portfolio management - Chapter 19

After studying this chapter you will be able to understand: Discount rate for project appraisal, mergers and acquisitions, arguments for and against mergers and acquisitions, methods of financing a merger, divestment. | Investment Analysis and Portfolio management Lecture: 31 Course Code: MBF702 Outline RECAP CHOSSING A DISCOUNT RATE MERGERS AND ACQUISIITIONS VENTURE CAPITAL Discount Rate for Project Appraisal No Changes in Financial or Business Risk. Current WACC may be used as discount rate. Questions are likely to be focused on how the project is to be financed to keep the WACC constant. Cost of project & increase in earning (equity) will be given. Calculate revised MV by dividing increased earning with WACC & compare with old MV to calculate NPV. Business Risk changes / Financial Risk may or may not change Adjusted Present Value (APV) Risk adjusted WACC (WACC) Financial Risk Changes & Business risk remains the same Traditional Theory Since traditional theory is not based on any formulae increase / decrease in Ke & Kd will be provided (due to gearing changes) Objectives MERGERS AND ACQUISITIONS To appreciate alternative strategies for long-term growth; To understand the arguments for and .

• Tài chính doanh nghiệp
• Investment analysis
• Portfolio management
• Investment management
• Investment theory
• Investment environment
• Investment analysis
• Investment companies
• Time value of money
• Characteristics of investment
• Investment portfolio management
• Investment analysis & portfolio management
• Investment background
• Developments in investment theory
• Management of common stocks