9the cost of capital

bài giảng chapter 9 the cost of capital

... Risk-Adjusted Cost of Capital  Start by calculating a divisional cost of capital  Estimate the risk of the project using the techniques in Chapter 11  Use judgment to scale up or down the cost of capital ... cost of capital Most firms incorporate tax effects in the cost of capital Therefore, focus on after-tax costs Only cost of debt is affected 9-5 Should we focus on historical (embedded) costs ... or new (marginal) costs? The cost of capital is used primarily to make decisions which involve raising and investing new capital So, we should focus on marginal costs 9-6 Cost of Debt  Method...

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Chapter 11 the cost of capital

Danh mục: Tài chính doanh nghiệp

... Understand the cost of capital and the specific sources of capital associated with the cost of capital • Determine the cost of debt and preference share capital • Calculate cost of ordinary share capital, ... received from the sale of a security  Flotation Costs: The costs of issuing and selling a security Flotation costs consist of two components: • Underwriting costs • Administrative costs Copyright © ... ease of calculation, availability of data and ease of adjustment for flotation costs when calculating the cost of new ordinary share capital Copyright © 2011 Pearson Australia (a division of Pearson...

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Accounting Information, Disclosure, and the Cost of Capital doc

Danh mục: Kế toán - Kiểm toán

... discuss the effects of disclosure regulation on the cost of capital of firms Based on our framework, increasing the quality of mandated disclosures should in general move the cost of capital closer ... price and on the cost of capital of reducing the assessment of firmvariance The firm-specific variance reduction effect is an important factor in the cost of capital analysis of Easley and O’Hara ... results is the different definition of cost of capital In particular, Hughes et al define cost of capital as the difference between beginning -of- period price and end -of- period expected cash flows,...

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The Cost of Capitalism: Understanding Market Mayhem and Stabilizing our Economic Future_2 pptx

Danh mục: Tài chính doanh nghiệp

... 2006, all would have been lost for her in the ﬁrst two years of its existence 30 • THE COST OF CAPITALISM That is, of course, because of what happened to house prices From 2000 to 2006 they rose ... the wreckage of the 2008 crisis, 10 • THE COST OF CAPITALISM with the Great Moderation dead, policy makers, business leaders, and investors need to come to understand the insights of Hyman Minsky ... mortgage despite drop in value of house House Foreclosed upon 32 • THE COST OF CAPITALISM Minsky’s Insights on Debt and Risk There are two lessons from the saga of Hal and Hanna If things go...

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The Cost of Capitalism: Understanding Market Mayhem and Stabilizing our Economic Future_4 pot

Danh mục: Tài chính doanh nghiệp

... commercial loan of ce 88 • THE COST OF CAPITALISM Over the mid-1980s, thrifts became major buyers of junk bonds They did so with little serious analysis of the underlying companies that offered up ... were offered a new product that would allow them to become bankers to mid-sized companies • 83 • 84 • THE COST OF CAPITALISM without creating large loan of ces Both innovations, on the face of ... 30% 47% 90% Quarter: *Average Expectation: Federal Reserve Bank of Philadelphia, Survey of Professional Economists 68 • THE COST OF CAPITALISM 2007 Thus consensus forecasters declared the United...

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The Cost of Capitalism: Understanding Market Mayhem and Stabilizing our Economic Future_5 pot

Danh mục: Tài chính doanh nghiệp

... emperor’s palace in Tokyo was equal to the value 96 • THE COST OF CAPITALISM of all the land in the state of California! The shares of Japanese car makers reached values that suggested these ... ﬁrst ﬁve minutes of our round table that the obvious issue we had to grapple with was the potential for a bursting of the large technology share price bubble 110 • THE COST OF CAPITALISM Figure ... 114 • THE COST OF CAPITALISM no mistake about it, in the spring of 2000 it was tight money, not troubling math, that burst the fantastic technology share price bubble In the early months of 2000,...

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The Cost of Capitalism: Understanding Market Mayhem and Stabilizing our Economic Future_6 pot

Danh mục: Tài chính doanh nghiệp

... bought hundreds of billions of euros’ worth of Continental sovereign bonds Other emerging 136 • THE COST OF CAPITALISM nations, including Russia, India, and Brazil, were giant buyers of developed ... combined to determine a home buyer’s cost of capital Accordingly, if the Fed could drive mortgage rates lower, it could lower home buyers’ sense of the capital cost to buy a home In so doing it ... 140 • THE COST OF CAPITALISM consumer spending and therefore spelled outright recession for the U.S economy The full implications of the hard fall for housing played out in the collapse of the existing...

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The Cost of Capitalism: Understanding Market Mayhem and Stabilizing our Economic Future_7 pot

Danh mục: Tài chính doanh nghiệp

... 156 • THE COST OF CAPITALISM By mid-2007, the CDO market had the implausibly high value of $55 trillion It amounted to a mountain of wagers about corporate bonds that dwarfed the value of the underlying ... and all, free market capitalism is vastly superior to governmentdirected investment strategies 166 • THE COST OF CAPITALISM The rest of this chapter will deal with the views of classical and mainstream ... insolvency was consistent with Minsky’s sense of the cost of capitalism As this book makes clear, periodic ﬁnancial market mayhem comes with the territory in a capitalist system It is government’s role...

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The Cost of Capitalism: Understanding Market Mayhem and Stabilizing our Economic Future_8 potx

Danh mục: Tài chính doanh nghiệp

... Street, over time, dulls the applicability of a given set of regulations 188 • THE COST OF CAPITALISM Minsky Modiﬁed Monetary Policy Does Minsky’s diagnosis of capitalist economies suggest a rule for ... THE COST OF CAPITALISM because the data inputted into the risk management models covered a period of euphoria Had the models been ﬁtted more appropriately to historic periods of stress, capital ... the price of progress For Minsky, government activism, to thwart the deﬂationary effects of Minsky and Monetary Policy • 183 banking crises, is the cost of capitalism The last 50 years of global...

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The Cost of Capitalism: Understanding Market Mayhem and Stabilizing our Economic Future_9 doc

Danh mục: Tài chính doanh nghiệp

... inescapable part of capitalism But the colossal scope of the 2008 global crisis, and the severe tangible costs that the world is now paying, came into being in large part because of misguided notions ... rise to the long string of successes that were celebrated throughout the 1990s and into the middle years of the ﬁrst decade of the new millennium Signing off on a world of slow growth, with bloated ... beyond the current economic crisis • 205 • 206 • THE COST OF CAPITALISM The Dynamic Restated Risk appetites grow as good times endure Borrowing costs for uncertain endeavors retreat, asset markets...

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Review Of The Cost Of Capitalism Culture Lifestyle_2 docx

Danh mục: Tài chính doanh nghiệp

... 2006, all would have been lost for her in the ﬁrst two years of its existence 30 • THE COST OF CAPITALISM That is, of course, because of what happened to house prices From 2000 to 2006 they rose ... the wreckage of the 2008 crisis, 10 • THE COST OF CAPITALISM with the Great Moderation dead, policy makers, business leaders, and investors need to come to understand the insights of Hyman Minsky ... mortgage despite drop in value of house House Foreclosed upon 32 • THE COST OF CAPITALISM Minsky’s Insights on Debt and Risk There are two lessons from the saga of Hal and Hanna If things go...

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Review Of The Cost Of Capitalism Culture Lifestyle_3 pptx

Danh mục: Tài chính doanh nghiệp

... retrenchment, 42 • THE COST OF CAPITALISM Ta b l e Minsky’s Three Stages of Capitalist Finance Hedge Finance: • Early cycle, with vivid memories of recession in place • Conservative estimates of cash inﬂows ... with a basic idea of what the future will bring And second, there has never been a cycle that was free of false conﬁdences and ﬂights of fancy from ﬁnanciers, 40 • THE COST OF CAPITALISM lenders, ... circumstances, a modest slowing is very disappointing to owners of stock Moreover, 50 • THE COST OF CAPITALISM because of the leveraged nature of their wagers, they lose substantial wealth and become...

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Review Of The Cost Of Capitalism Culture Lifestyle_4 doc

Danh mục: Tài chính doanh nghiệp

... commercial loan of ce 88 • THE COST OF CAPITALISM Over the mid-1980s, thrifts became major buyers of junk bonds They did so with little serious analysis of the underlying companies that offered up ... were offered a new product that would allow them to become bankers to mid-sized companies • 83 • 84 • THE COST OF CAPITALISM without creating large loan of ces Both innovations, on the face of ... 30% 47% 90% Quarter: *Average Expectation: Federal Reserve Bank of Philadelphia, Survey of Professional Economists 68 • THE COST OF CAPITALISM 2007 Thus consensus forecasters declared the United...

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Review Of The Cost Of Capitalism Culture Lifestyle_5 pptx

Danh mục: Tài chính doanh nghiệp

... emperor’s palace in Tokyo was equal to the value 96 • THE COST OF CAPITALISM of all the land in the state of California! The shares of Japanese car makers reached values that suggested these ... ﬁrst ﬁve minutes of our round table that the obvious issue we had to grapple with was the potential for a bursting of the large technology share price bubble 110 • THE COST OF CAPITALISM Figure ... 114 • THE COST OF CAPITALISM no mistake about it, in the spring of 2000 it was tight money, not troubling math, that burst the fantastic technology share price bubble In the early months of 2000,...

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Review Of The Cost Of Capitalism Culture Lifestyle_6 docx

Danh mục: Tài chính doanh nghiệp

... bought hundreds of billions of euros’ worth of Continental sovereign bonds Other emerging 136 • THE COST OF CAPITALISM nations, including Russia, India, and Brazil, were giant buyers of developed ... combined to determine a home buyer’s cost of capital Accordingly, if the Fed could drive mortgage rates lower, it could lower home buyers’ sense of the capital cost to buy a home In so doing it ... 140 • THE COST OF CAPITALISM consumer spending and therefore spelled outright recession for the U.S economy The full implications of the hard fall for housing played out in the collapse of the existing...

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Review Of The Cost Of Capitalism Culture Lifestyle_7 potx

Danh mục: Tài chính doanh nghiệp

... 156 • THE COST OF CAPITALISM By mid-2007, the CDO market had the implausibly high value of $55 trillion It amounted to a mountain of wagers about corporate bonds that dwarfed the value of the underlying ... and all, free market capitalism is vastly superior to governmentdirected investment strategies 166 • THE COST OF CAPITALISM The rest of this chapter will deal with the views of classical and mainstream ... insolvency was consistent with Minsky’s sense of the cost of capitalism As this book makes clear, periodic ﬁnancial market mayhem comes with the territory in a capitalist system It is government’s role...

28
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Review Of The Cost Of Capitalism Culture Lifestyle_9 pot

Danh mục: Tài chính doanh nghiệp

... inescapable part of capitalism But the colossal scope of the 2008 global crisis, and the severe tangible costs that the world is now paying, came into being in large part because of misguided notions ... rise to the long string of successes that were celebrated throughout the 1990s and into the middle years of the ﬁrst decade of the new millennium Signing off on a world of slow growth, with bloated ... beyond the current economic crisis • 205 • 206 • THE COST OF CAPITALISM The Dynamic Restated Risk appetites grow as good times endure Borrowing costs for uncertain endeavors retreat, asset markets...

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Review Of The Cost Of Capitalism Culture Lifestyle_10 pptx

Danh mục: Tài chính doanh nghiệp

... future, 60 C Capital, ﬁnancing development in Asia, 59 Capital asset, price of, 60 Capital ﬂows, engineering global boom, 63 Capital markets, 59–60, 62–63, 130 Capitalism, 3, 11 Capitalist economies, ... 3, 11 Capitalist economies, 7, 187 Capitalist ﬁnance, 2, 42, 55, 62–63 Capitalist instincts, of the Chinese, 60 Capitalist system, ﬁnancial market mayhem, 152 Capital- to-labor ratio, 100 Carter, ... Financial crisis of 2008 colossal scope of, 207 coming to terms with, 10–11 economic orthodoxy on the eve of, 161–176 essential elements of, 149–151 global policy risks in the aftermath of, 205–215...

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The Cost of Capitalism Market Madness_1 pptx

Danh mục: Cao đẳng - Đại học

... retrenchment, 42 • THE COST OF CAPITALISM Ta b l e Minsky’s Three Stages of Capitalist Finance Hedge Finance: • Early cycle, with vivid memories of recession in place • Conservative estimates of cash inﬂows ... with a basic idea of what the future will bring And second, there has never been a cycle that was free of false conﬁdences and ﬂights of fancy from ﬁnanciers, 40 • THE COST OF CAPITALISM lenders, ... circumstances, a modest slowing is very disappointing to owners of stock Moreover, 50 • THE COST OF CAPITALISM because of the leveraged nature of their wagers, they lose substantial wealth and become...

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The Cost of Capitalism Market Madness_2 pdf

Danh mục: Cao đẳng - Đại học

... commercial loan of ce 88 • THE COST OF CAPITALISM Over the mid-1980s, thrifts became major buyers of junk bonds They did so with little serious analysis of the underlying companies that offered up ... were offered a new product that would allow them to become bankers to mid-sized companies • 83 • 84 • THE COST OF CAPITALISM without creating large loan of ces Both innovations, on the face of ... 30% 47% 90% Quarter: *Average Expectation: Federal Reserve Bank of Philadelphia, Survey of Professional Economists 68 • THE COST OF CAPITALISM 2007 Thus consensus forecasters declared the United...

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