Nobody downloaded yet

Advanced Corporate Finance - Coursework Example

Comments (0) Cite this document
Summary
The purpose of this study is to concern the main principles of advanced corporate finance. Specifically, the writer of this paper focuses on the influence of the taxes on the firm's capital structure and accounting along with financial activity overall…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.2% of users find it useful
Advanced Corporate Finance
Read TextPreview

Extract of sample "Advanced Corporate Finance"

Download file to see previous pages Differential tax treatments are the causes for less than one dividend drop ratios (DDR). Thus, through their research on the relationship between taxes and a firm’s decisions, they articulate that in a rational market, the ex-dividend cutoff should reflect the value of capital gains and dividends to a marginal shareholder. However, when tax enters into the investors’ decisions, the fall in share price in the ex-dividend should show the price of the post value capital gains relative to the post value of dividends. Therefore, because of the influence of tax differential rates, on the capital gains and dividends, the DDR will be less than one because of the fall dividend values due to higher taxation as a result of the effect of personal taxes (Elton, Gruber, & Blake, 2005). Therefore, this impact will influence the firm’s decision in terms of contributions to capital gains and dividends. There are other factors that like tax influences the decisions of a firm to either pay dividends or capital gains. The availability of growth opportunities for investment requires that firms plow back their profits to invest in projects with positive NPVs as illustrated by the signaling hypothesis lieu of paying or increasing their dividend payout, which sends a negative signal to the investors. The stability of earnings is another factor. Firms that have constant earnings are likely to pay out dividends unlike firms with lower or unstable earnings whose dividend payout is likely to result in the decline of growth of their earnings. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Advanced Corporate Finance Coursework Example | Topics and Well Written Essays - 1000 words”, n.d.)
Advanced Corporate Finance Coursework Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/finance-accounting/1693301-advanced-corporate-finance
(Advanced Corporate Finance Coursework Example | Topics and Well Written Essays - 1000 Words)
Advanced Corporate Finance Coursework Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/finance-accounting/1693301-advanced-corporate-finance.
“Advanced Corporate Finance Coursework Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/finance-accounting/1693301-advanced-corporate-finance.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Advanced Corporate Finance

Advanced Corporate Reporting

...?ADVANCED CORPORATE REPORTING Companies are under tremendous pressure from public at large to be socially responsible as their actions leave a significant impact on the environment and the society as well. While there are no set standards available as of now to report issues related to these, some guidelines have been prepared by the Global Reporting Initiative (GRI). However these are voluntary in nature and not mandatory for the organizations. The triple bottom line approach theory to sustainability stipulates that profit is not the only parameter, based on which performance of a company need to be evaluated and judged. This is a narrow way of performance evaluation. There other “bottom lines “which...
6 Pages(1500 words)Essay

Advanced Corporate Reporting

...Advanced Corporate Reporting Prepared by Submitted to Word count 2699 Assessment of application of International Accounting Standards 1.1 Effect of IFRS on the companies and economy: All listed companies have published the consolidated financial statements in accordance with IFRS. Even some non listing companies also have applied for IFRS. At the time of further implementation of IFRS in 2007, the assessment of the previous implementation is judicious. This is in particular for the companies that issue public bonds on a regulated European market. These accounting standards have shown a significant impact on the potential influence on the behaviour of economic agents. Accounting standards caused the financial institutions to behave... by...
9 Pages(2250 words)Essay

Corporate finance

...Corporate Finance Introduction United Metal is considering an alternative proposal of buying components from Amalgamated Components. These componentsare at present being manufactured in house by United Metals. The proposal assumes a saving of $96000 during a period of eight years, which is remaining useful life of machinery purchased by United Metals a year ago the purpose of manufacturing of such components. An effort has been made in this write up to evaluate both the in-house manufacturing and buying proposals in order to arrive at proper recommendations to be made to United Metals. a) Critical evaluation of arguments of purchasing and production managers Purchasing Manger’s arguments 1. The argument of the purchasing manger... Finance...
5 Pages(1250 words)Essay

Advanced Corporate Finance - 'Company Valuation is an art not a Science.'

...not choose a company with a low value. Thus it is essential a lot of care is taken while considering the valuation of companies and the apt valuation tools are used to value the company. Bibliography Bytestart, 2008, ‘Business Valuation Guide – How to value a business’, 25 June 2008, Accessed on 20 January 2009, Retrieved from http://www.bytestart.co.uk/content/finance/funding/business-valuation-guide.shtml Feechan, C., 2006, ‘Company Valuations – Art no Science’, 04 July 2006, Accessed on 21 January 2009, Retrieved from http://www.biggartbaillie.co.uk/ideas--insights/all-articles/corporate/company-valuations---art-not-science.aspx Horn, T.W., 2008, ‘Unlocking the value of your Business: How to increase...
5 Pages(1250 words)Essay

Analyze the def-14a by JPMorgan of advanced corporate finance

...Analysis of the DEF-14a by J.P. Morgan of Advanced Corporate Finance JP Morgan Company’s risk management team looks like it has what can be termed as a qualified one based on its background. The members of the risk management team are well qualified, for instance given that Linda Bammann, who was the deputy head of JPMorgan risk management team since 2004 to 2005, has worked at high positions in different entities previously, including serving as a chief risk management officer before her job in JPM. She has had a good experience in the field hence quite an experience in the field in addition to her academic qualifications (a degree in bachelors of Science Stanford University, as well as...
2 Pages(500 words)Term Paper

Advanced Corporate Finance Assignment

...Advance Corporate Finance Introduction The whole interest begun on the 25th of November, when Ian Read, who is the Chief of Pfizer approached AstraZenecas chairman, Leif Johansson to request them to discuss about a merger between the two companies. All agreed, and the meeting was scheduled for early the following year, 2014. The two sides of leadership then met on 5th January, 2014, in New York, for what was termed as ‘high level talks. The first proposal by Pfizer hit £58bn or £4661 per share, a price that was declined by AstraZeneca. On 26th April, 2014, Read requests to meet Johansson to initiate fresh talks. Johansson declines to any more talks on a merger. Two days later, Pfizer...
2 Pages(500 words)Essay

Advanced Business Finance and Advanced Financial Management

...ADVANCED BUSINESS FINANCE AND ADVANCED FINANCIAL MANAGEMENT by The of the The of the School (University) The City and State where it is located The Date A. Introduction This report illustrates on how individual traders applied investment strategies through a combination of fundamental and technical information thus distinguishing the winners stock from loser stock. £100,000 is invested in UK stock market from October to January 2014. Proper risk management and control skills employed will determine the portfolio returns. In addition, the report explored the investment opportunities by thorough examination of financial power, which includes profitability, business efficiency, stability...
8 Pages(2000 words)Essay

Advanced corporate finance

...Advanced Corporate Finance Table of Contents Question 3 Question 2 4 A. Explanation, Using Numerical Examples, As To How Shareholders Can Expropriate Wealth from Debt-Holders 4 B. Reduction in the Conflict between Shareholders and Debt-Holders Owing To the Below Variables and the Subsequent Disadvantages 5 Question 3(a) 7 Question 4(b) 7 Impact of Management Incentives on Managers’ Leverage Choices 7 Impact of Asymmetric Information on Managers’ Leverage Choices 8 Impact of Stakeholder Theory on Managers’ Leverage Choices 8 Question 1 A manager always intends to maximize the share price of the company, not only because their incentives depend on the same but also because they need to...
5 Pages(1250 words)Essay

Advanced corporate reporting

...Advanced Corporate Reporting of Introduction (125 words) The main objective of this report isto examine the accounting for revenue recognition. Revenue is an important measure of a company’s financial performance and position used by investors and other stakeholders for decision making purposes (case study). There is always a demand for accounting information to be reliable and consistent to users of financial statements. However, revenue recognition guidance in the past was not consistent and had many weaknesses. Hence, principles-based revenue recognition model was introduced to have one accounting standard that applied to all companies in all industries. In this report, we will discuss the differences...
3 Pages(750 words)Case Study

Advanced Finance

...Summary and Critical Evaluation (attribution analysis) Affiliation: Part IV: Summary and Critical Evaluation (attribution analysis) of the portfolio performance Upon focusing on the level of performance of the entire investments made, it is apparent that the investments are creating significant returns and working well in the market. The first area of performance is the performance observed by looking at the overall performance. The data indicates that total returns are at 3.79, which is a good figure to consider while making a decision to make more investments. At first, looking at the performance of AstraZeneca (AZN) when compared to the UK FTSE 100 Index shows that the investment is making significant returns. Particularly... and Critical...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Coursework on topic Advanced Corporate Finance for FREE!

Contact Us