Legal aspects of international mergers and acquisitions: Sacyr/Eiffage
Essay - 7 pages - Finance
The Sacyr/Eiffage case involves two public construction companies, the Spanish Sacyr Villehermoso and the French Eiffage. First, let's introduce those two companies. Sacyr is a leading Spanish construction company based and listed in Madrid. It is publicly traded and part of the IBEX 35, the...
Financial analysis of ExxonMobil
Financial analysis - 15 pages - Finance
The Financial analysis of ExxonMobil: ExxonMobil is one of the rare modern companies which were already involved in activities related to the oil industry in the nineteenth century. Besides the Benelux countries, the roots of the current organization are in Antwerp and Rotterdam. In the United...
Contemporary international finance and East Asian economic integration
Essay - 16 pages - Finance
The “Current Account crisis” is a particular type of external debt crisis that affects mostly low-income developing countries. It is characterized by a huge deficit in the current account balance which provokes a Balance of payments deficit and a currency crisis. A current account...
Bretton Woods Institutions (IMF and World Bank): history and Modern situation
Essay - 13 pages - Finance
To overcome the chaos and the devastations caused by the Second World War, Countries had to set up new institutions liable to restore a stable international order. This reconstruction was led by the United States of America and its allies. From 1941, in the Atlantic chart, the allies wanted to...
It is clear that there is a relationship between risk and return, but we are not yet clear exactly what that relationship is
Essay - 3 pages - Finance
Incertitude about expected returns is one of the criteria which influence the largest number of strategic investment decisions. Thus the relationship between risk and return is a fundamentally financial relationship, because it affects expected rates of return on investment. This relationship...
There is no such thing as a perfect capital structure
Essay - 6 pages - Finance
The relevance of a company capital structure has been the subject of several theories and debate. The capital structure of a company is a mix of different securities. Capital structure refers to the way a corporation finances itself through a combination of equity sales, equity option, bonds and...
Rank group PLC
Financial analysis - 17 pages - Finance
The Rank Group provides leisure and entertainment services. It mainly operates in the United Kingdom and North America. Rank's businesses include Mecca Bingo, Grosvenor Casinos, Blue Square, Top Rank España and Hard Rock. This document presents the story of the Rank Group and some of its...
Banking: KMV model
Essay - 7 pages - Finance
Risk management is a very important issue in financial markets. Moody's KMV Model is a structural model inspired from Merton's model. It is equivalent to an option model that evaluates the implied volatility of the company's assets. It relies on Black & Scholes valuation model (1973)....
Advanced corporate finance part Final assignment Investment management
Essay - 16 pages - Finance
Investment management is the professional management of various securities like shares and bonds and other assets such as real estate to meet specified goals of investment for the benefit of the investors. In an attempt to understand the world of investment management, it is useful to be aware of...
Advanced corporate finance - publié le 02/05/2008
Essay - 12 pages - Finance
X = $100 kRF = 8% 50% P1 = $120 P0 = $80 50% P1' = $60 En utilisant l?approche par portefeuille de réplication, déterminez la valeur de l'option. Quel est le ratio de couverture? Que signifie le ratio de couverture? HR = options / actions HR = (120 ? 100) / (120 ? 60) HR = 1/3 Le ratio de...
American Grain Corporation - publié le 30/04/2008
Essay - 14 pages - Finance
American Grain Corporation: When shareholders are about to invest in project, they need to know what the financial consequences of it are. They need to plan the expenses and the possibilities of return on investment, regarding how long it will take to start earning a profit. To choose the project...
Accounting and finance report: the case of a pharmaceutical business
Case study - 26 pages - Finance
Easter Gate Scientific Supplies Inc. is a major global supplier of instruments equipment and services to the scientific community with a 17.5% market share of the global market, making it the largest business in the industry. E.G is pursuing a strategic growth, seeking to increase its market...
How does a rational investor build the optimal portfolio? Should international securities be added to that?
Course material - 4 pages - Finance
The modern portfolio theory was introduced by Harry Markowitz with the publication of his paper “Portfolio Selection” in the Journal of Finance in 1959 and is called Markowitz portfolio theory (MPT). It is now the major guidance for portfolio allocation decisions for mutual funds,...
Options, futures and other derivatives
Essay - 7 pages - Finance
The binomial model is used to describe stock price movements through consecutive periods of time over the life of the option and to determine the actual price of this derivative. Each period is an independent trial. The binomial formula describes a process in which stock return volatility is...
Multifactor Models of Risk and Return
Essay - 8 pages - Finance
The assumptions about the capital market theory expands on to that of the Markowitz portfolio model, and includes consideration of the risk-free rate of return. The correlation and covariance of any asset with a risk-free asset is zero, so that any combination of an asset or portfolio with the...
Hedging a Stock Porfolio with Futures
Essay - 22 pages - Finance
In the following development, basic portfolio management is explained. First, through questions, and in the second part, through a three-shares-composed portfolio. I will use indices futures, and equity futures. Equity futures functioning is the same as other classical futures such as indices...
EEV (European Embedded Value) and MCEV (Market Consistent Embedded Value)
Essay - 13 pages - Finance
In May 2004 the CFO forum published European Embedded Value Principles. The “CFO Forum” is a high-level discussion group composed and attended by the Chief Financial Officers of 19 leading European insurers. These principles are intended to increase the quality, comparability and...
A probabilistic approach to the valuation of general floating rate notes with an application to interest rate swaps
Essay - 5 pages - Finance
The aim of this article is to get an exact formula to price Floating Rate Notes. The authors will go further in order to price Interest Rate Swaps, in a stochastic term structure environment. Main assumptions of the article are the following, the market is complete, and the probability (explained...
International Transactions
Essay - 16 pages - Finance
The most important objective for a financial manager is to maximize the wealth of the shareholders. Hundred of years ago, most of the companies were owned by a small group of shareholders, so making the financial decisions were easy. But nowadays companies are owned by diversified shareholders...
The Modern Portfolio Theory (Advanced Corporate Finance)
Course material - 9 pages - Finance
The Modern Portfolio Theory occupies an important position in the investment management approaches. The theory is distinctive as its application enables investors to minimize the risk involved in investing in different classes of investment by diversifying it with the help of a portfolio. The...
Valuing Common Stock
Essay - 8 pages - Finance
The valuation of common stock has been a subject of broad interest for more than a century. The reason is obvious. If you buy a stock that goes up, you can make profit, and if you can consistently select stocks that go up, you can become rich. There is an obvious approach to choosing stocks. It...
The restitution of looted assets
Essay - 15 pages - Finance
A lot of countries have experienced corrupt governance and its consequences on public management. In numerous cases, heads of Government, presidents, dictators and other forms of political leaders have stolen large amounts of public money. Nowadays, the Governments of those countries are...
Rapport de stage "State Street Bank"
Internship report - 7 pages - Finance
The Grand Duchy of Luxembourg is a sovereign state of 2 500 square kilometers bordered by Belgium, France and Germany. It has a population of over 455 000 of which 38.6 % are foreigners. The city of Luxembourg has a population of 77 300. Each working day, over 117 000 cross-border workers travel...
Financial management final assignment
Essay - 13 pages - Finance
The NPV (Net Present Value) method is a standard formula that calculates the difference between the present value of cash inflows and the present value of cash outflows. This method is used for capital budgeting for a project in order to estimate the financial soundness of the project. In order...
Financial Analysis of Southwest Airlines and United Airlines
Financial analysis - 14 pages - Finance
The airline industry has significantly changed over the last few years of this century. Incidents such as the terrorist attacks of September 11, 2001, of Madrid and London, Iraq war and fuel prices increase have caused losses since 2001 in the accounts of airline companies. Some of them declared...
Inflation, interest rates and the Phillips curve
Essay - 13 pages - Finance
One of the major issues facing the Keynesians in the 1950s was the issue of falling money wages. Following Modigliani, they believed the Keynesian model of unemployment equilibrium could only be "closed" by assuming rigid money wages. Otherwise, the Keynes and Pigou effects would drive it back to...
Baoshan Iron & Steel Co Ltd: Crafting a three-way cross-border, cross-shareholding alliance - publié le 29/02/2008
Essay - 3 pages - Finance
Baosteel is the most modern and profitable steel maker in China. The Chinese giant is, however, in a critical situation: From one side, Baosteel is facing a need for capital to achieve its projects. From the other, the Chinese market became more attractive since China's entry to WTO because China...
Investment plan in Japan (2006)
Essay - 32 pages - Finance
Our investment strategy in Japan: We are in charge of a Japanese branch of a foreign investment bank. We need to make an investment strategy for a 100 million US dollars in total. The investment term is 1 year for 50 million dollar and 10 years for the remaining 50 million dollars. Our goal is to...
The workings of mergers and acquisitions
Case study - 7 pages - Finance
The fever of mergers and acquisitions reigns over the big, world companies (American, European etc.). Billions of dollars are exchanged every day from hand to hand. Oil, Hi-tech, pharmacy, banks, insurance, aeronautics, everywhere companies are merging. To be efficient a merger must bring some...
Gus Van Sant vs. Johnny Depp
Case study - 10 pages - Finance
I am the new Chief financial officer of a US film studio and i have to make recommendations on four projects in order to produce a profitable movie. Firstly, i am going to calculate Net Present Value for each scenario because i have to make a selection. Indeed, i must determine the negative and...
