Robert Alan Hill Strategic Financial Management: Exercises Download free books at Download free eBooks at bookboon.com 2 R.A. Hill Strategic Financial Management Exercises Download free eBooks at bookboon.com 3 Strategic Financial Management Exercises 1 st edition © 2009 R.A. Hill & bookboon.com ISBN 978-87-7061-426-9 Download free eBooks at bookboon.com Click on the ad to read more Strategic Financial Management Exercises 4 Contents Contents About the Author 7 Part One: An Introduction 8 1 Finance – An Overview 9 Introduction 9 Exercise 1.1: Modern Finance eory 9 Exercise 1.2: e Nature and Scope of Financial Strategy 14 Summary and Conclusions 16 Part Two: e Investment Decision 17 2 Capital Budgeting Under Conditions of Certainty 18 Introduction 18 Exercise 2.1: Liquidity, Protability and Project PV 19 Exercise 2.2: IRR Inadequacies and the Case for NPV 22 Summary and Conclusions 25 www.sylvania.com We do not reinvent the wheel we reinvent light. Fascinating lighting offers an infinite spectrum of possibilities: Innovative technologies and new markets provide both opportunities and challenges. An environment in which your expertise is in high demand. Enjoy the supportive working atmosphere within our global group and benefit from international career paths. Implement sustainable ideas in close cooperation with other specialists and contribute to influencing our future. Come and join us in reinventing light every day. Light is OSRAM Download free eBooks at bookboon.com Click on the ad to read more Strategic Financial Management Exercises 5 Contents 3 Capital Budgeting and the Case for NPV 26 Introduction 26 Exercise 3.1: IRR and NPV Maximisation 26 Exercise 3.2: Relevant Cash Flows, Taxation and Purchasing Power Risk 31 Summary and Conclusions 37 4 e Treatment of Uncertainty 38 Introduction 38 Exercise 4.2: Decision Trees and Risk Analyses 46 Summary and Conclusions 51 Part ree: e Finance Decision 52 5 Equity Valuation the Cost of Capital 53 Introduction 53 Exercise 5.1: Dividend Valuation and Capital Cost 53 Exercise 5.2: Dividend Irrelevancy and Capital Cost 61 Summary and Conclusions 68 360° thinking . © Deloitte & Touche LLP and affiliated entities. Discover the truth at www.deloitte.ca/careers . Robert Alan Hill Strategic Financial Management: Exercises Download free books at Download free eBooks at bookboon.com 2 R.A. Hill Strategic Financial Management Exercises Download free. bookboon.com 3 Strategic Financial Management Exercises 1 st edition © 2009 R.A. Hill & bookboon.com ISBN 978-87-7061-426-9 Download free eBooks at bookboon.com Click on the ad to read more Strategic. day. Light is OSRAM Download free eBooks at bookboon.com Click on the ad to read more Strategic Financial Management Exercises 5 Contents 3 Capital Budgeting and the Case for NPV 26 Introduction