B Investment decisions and risk analysis 清楚题 99/6 Tovell: APPENDIX的计算可以再看看 00/12 Fuelit:挺好的，弄明白了，看看 04/6 Zendeck:纯关于WACC 03/6 Hasder: 多看看，与98/6Phantom放在一起看，理解公式 04/12 Trosoft:挺好，多看看，APV 简单整理： ⑴Time value of money: FV=PV*(1+n)n ⑵Discount factor:题目给，或者（1+r）-n ⑶Annuities: PV of deferred annuity=annual cash flow*annuity factor*PV factor ⑷Perpetuities: PV of a perpeturity=P0=annual cash flow/discount rate
⑸NPV: 时间1 时间2 时间3 时间4 Receipts: Payments: (wages) (materials) (variable/fixed overheads) (administration/distribution expenses) (capital allowances/tax allowable depreciation) Taxable profits(EBIT) (Tax) Add back: capital allowances/tax allowable depreciation (initial outlay) NRV Working capital 0-/n+ Net cash flow Discount rate PV NPV Free cash flows=EBIT(1-t)+capital investment+/-change in WC 可考虑的factor: social responsibility, risk, technical, economic, fiscal, CAPM limitation, reliability, sensitivity analysis， 未来的现金流不包括沉没成本，非现金支出（折旧等），在做决定前已经发生的费用支出等。 ⑹Fisher equation: (1+money rate)=(1+real rate)*(1+general inflation rate) ⑺WACC= Ke*E+ Kd(1-t)*D E+D E+D 注意其他的相关公式如Ke \Kd \real rate的计算及相关的assumption: inflation rate 等等 ⑻EVA=NOPAT-capital employed*cost of capital 注意EVA的优缺点 ⑼Dividend valuation model: P0=D0(1+g) Ke-g 注意相关的assumption ⑽the returns on a two-asset portfolio: Rp=RaXa+ RbXb the risk on a two-asset portfolio:δp=√δ2aX2+δ2b(1-x)2+2x(1-x)Pabδaδb correlation coefficient=COVab/δaδb ⑾Modigliani and Miller’s theory: MVg= MVu + Dt ⑿CAPM: required return=risk free return+ systematic risk premium 注意assumption/limitation ⒀the arbitrage price model ⒁APV: Base case NPV (Issue costs) PV of the tax shield PV of interest savings on subsidized loan APV
C Corporate expansion and reorganization 清楚题 03/12 Megasal: APPENDIX可以看看 01/6 Laceto 00/6 Romage 03/6 Evertalk
Advantage/disadvantage/who benefits/financial aspects The max sum pay for a target company: PV of target company cash flow+ synergy\ Synergy: economies of scale/scope/vertical integration, operating, head office, management, financial tax shield, market power Problem to achieve Synergy Methods: cash/equity shares/preference shares/loan stock Regulation of takeovers Defend against a takeover bid: pre-bid/post bid P/E ratio/dividend valuation model\
Futures大致步骤：buy or sell Number of contracts Choose a date Calculate profit or loss Conclusion option大致步骤：Number of contracts Calls or puts? Contracts costs Hedge outcome
interest rate risk: fixed rate loan/variable rate loan Hedge: forward rate agreement/interest rate guarantees/interest rate futures/exchange traded interest rate options Futures: buy a future—deposit money sell a future—borrow money basis risk options: buy: buy the right to buy or buy the right to sell call: right to buy the futures put: right to sell the futures deposits-- buy the futures—buy calls loan-- sell the futures—buy puts