-
7/25/2019 7330 Lecture01 Intro and Review-F09.ppt
1/27
Advanced Corporate
FinanceRonald F. Singer
FINA 7330Review of Financial
ManagementLecture 1
Fall 2009
-
7/25/2019 7330 Lecture01 Intro and Review-F09.ppt
2/27
Fall 2009
Administration
Instructor: Ronald F. inger
!"one: #1$%#&$%#1
'ffice (ours: )ednesda* 2:$0 to &:00 or+* a,,ointment
Room 210F Melc"er (all
)e+,age: www.+auer.u".edu-singer
-
7/25/2019 7330 Lecture01 Intro and Review-F09.ppt
3/27
lass Administration
Exams
Late Entrants
Reading, Eating, etc.
Attendance exts!
/ reale* M*ers and Allen Principles of CorporateFinance
9t"ed.
/ Wall Street Journal "al#ation $ro%lem
/ rou,s ,resentation stud*
-
7/25/2019 7330 Lecture01 Intro and Review-F09.ppt
4/27
'utline
Capital dgeting 'ecision/ Financial tatement Anal*sis
/ 3!4 Rule
/Ar+itrage and Ris5/ 6ime 4alue of Mone*
/ om,licated 7ecisions
Investments
/ Ris5 versus Return/ ',timal !ortfolio election 8ML
/ ;uili+rium !rices 8ML and A!M
-
7/25/2019 7330 Lecture01 Intro and Review-F09.ppt
5/27
Review of or,orate Finance
6"ree areas of in;uir*
/a,ital udgeting
/a,ital tructure
/!a*out ,olic*
-
7/25/2019 7330 Lecture01 Intro and Review-F09.ppt
6/27
a,ital udgeting
)"at is to +e discounted
8? t"ousand Sales $5,000 Less: ',erating @,enses 8' 2000
7e,reciation AmortiBation C00 Allocated A osts $00 Operating
Income8I6 (),)00
Less: Interest @,ense >00 Earnings Before Tax 8ta@a+le income
1&00 Less 6a@ 8D $CE &90 Net Income (Earnings after Tax)
?910
arnings ,er "are 8! 3et Income-"ares ?0.91Assuming 1 million
s"ares outstanding
-
7/25/2019 7330 Lecture01 Intro and Review-F09.ppt
8/27
>
Macintos" nter,rises
!ro%Forma as" Flow tatement8=ear ending 7ecem+er $1 200>
8? t"ousandarnings efore Interest and 6a@es ?2200 Less: 6a@ on
',erations 8D $CE 83ote: not ?&90 770*perating Income a+ter ax
E&I-t/ / -,30 !lus: 3on%as" @,enses 87e,reciation AmortiBation
C00Less: "ange in )or5ing a,ital % $00
GIncrease a-c receiva+le 200increase in Inventor* 100
Increase ot"er 6 Assets 100 Less: increase in a-c ,a*a+le
1C0
7ecrease 6 Lia+il. 8C0H "ange in )or5ing a,ital $00Cash Flow
from Operations $1,630
!lus Interest 6a@ "ield 8>00 times 0.$C 2>0CAS F!OW $1,"10
Less: 3et 3ew Investment 8net of ca,ital gains ta@ 200
Less: as" Flow to ond"olders 8Interest ,rinci,al ond Re,urc"ase
all 1 2#0 Less: as" Flow to !referred stoc5"olders 100Free Cash
Flow to Common Stoc#holers 3%0
I67A ?2#00
-
7/25/2019 7330 Lecture01 Intro and Review-F09.ppt
9/27
Firm 4aluation
)"at determines t"e value of t"e Firm
