Financial Management (BUSI 640)
Professor Faulkender
Problem Set #2
1. Suppose that oneyear zerocoupon US Treasury bonds with a $10,000 face value are
currently selling for $9,852. Similarly zerocoupon Treasuries with two years to
maturity are selling
Chapter 8 Notes
Bond Values and Passage of Time
Haluk Unal
There are two main factors that cause prices of default free bonds change. One, if the term structure of
interest rates change (holding time constant). The other, if time changes (as we get closer
BUFN 740: Quiz 5
Name:
ID#:
Section#:
1. The expected return, relationship can fail even if the Market is the MVE portfolio. True or False?
(assume all assets are tradable long and short and there are no transaction costs)
2. Suppose there are only two ri
BUFN 740: Quiz 1
Name: _ ID#:_ Section#:_
1. The yield curve for zerocoupon bonds contains the same information as the yield curve for coupon
bonds. True or False (explain)?
2. You observe the following market data:
1year zero coupon bond with $1000 fac
BUFN 740: Quiz 3
Name:
ID#:
Section#:
1. A forward contract on a dividend paying stock can be replicated using call and put options and riskfree
securities. True or False?
2. Microsoft stock price is currently $30 and has annualized return standard devia
BUFN 740: Quiz 4
Name:
ID#:
Section#:
1. Meanvariance analysis tells us what expected returns and covariances should be. True or False?
2. You are given the following information (all returns and standard deviations are per year unless otherwise specifie
BUFN 740: Quiz 2
Name:
ID#:
Section#:
1. A bond with oneyear to maturity makes semiannual coupon payments at a 12% annual rate, has face
value of $100, and the yield curve is flat at 4%. What is the modified duration of the bond?
2. Suppose the S&P 500
BUFN 740: Practice Problems Week 4
1. If portfolio A has a higher Sharpe ratio than portfolio B, then an investor with meanvariance preferences will prefer investing all his wealth A vs all in B. True or False?
2. Can indierence curves for the same perso
BUFN 740: Practice Problems Week 5
1. The CAPM is based on the assumption that every investor puts 100% of his wealth in the market
portfolio. True or False?
2. The Capital Market Line shows the CAPM relationship between an asset's and expected return E [
BUFN 740: Practice Problems Week 3
1. Early exercise (prior to maturity) of an American style call option is never optimal on a stock which
pays no dividends. True or false?
2. Put/call parity holds for both European and American style options. True or fa
BUFN 740: Practice Problems Week 2
1. A bond has Modified duration = 5. The yield curve is flat at 8%. What is the bonds Macauly
duration? If yields increase by 2%, by how much will the bonds price change (quantity and sign)?
Suppose you are short $20,000
BUFN 740: Practice Problems Week 1
1. The yield curve is flat at 5%. What is the price of an 18month zerocoupon bond with $1000 face
value?
2. A twoyear zero coupon bond with $1,000 par value sells for $841.68. What is the annualized yieldtomaturity o
Crystal Ball Data
Workbook Variables
Name:
Value:
Last Var Column
Worksheet Data
Last Data Column Used
0
2
Sheet Ref
Err:509
Err:509
Sheet Guid
59f30b967a614965b8df3206518e646a
2b1c8ed62e124470aa18426d266ad2c1
Deleted sheet count
Last row used
28
Discounted Cash Flow Model on Mercury Athletic Footwear
The model our group has used for the valuation on Mercury Athletic Footwear is a DCF model
mainly based on the 5year revenue forecast and balance sheet projection done by Liedtke. Our
group uses two
1. What was the strategic and economic rationale for Mannesmanns acquisition of Orange?
Mannesmanns acquisition of Orange is rational from both strategic and economic
perspectives.
From strategic aspect, Mannesmann insisted on an integrated telecommunicat
Exhibit 1
Facebook Timeline
Year
Highlights
2004
2005
2006
2007
2008
2009
2010
2011
February. Founded under the name thefacebook.com at
Harvard University
September. Introduced the Facebook Wall, a forum for
users to post messages to their friends
Began t
MW Petroleum
Apache's cost of capital
Unlevered cost of capital:
Risk free rate (10yr bond)
Unlevered beta
Equity risk premium
Unlevered cost of capital
8.03%
0.82
5.70%
12.70%
From Exhibit 7
Aggregate MW Projections
Production:
Net Crude and Condensates
VodafoneMannesmann Case
Advance Corporate Finance
Thursday, March 4th 2010
Pieters, Christine, 5656559
Priyautama, Yoga, 5923646
Tan, Jason, 0577561
Terstappen, Jon, 5786169
1
On November 19, 1999, Vodafone proposed that each Mannesmann share would
recei
Case #2 Vodafone AirTouchs Bid for Mannesmann
Mergers and Acquisitions
Group 4
Mergers and Acquisitions
1
Executive Summary
Mannesmanns acquisition of Orange
page 3
Vodafones proposal for the acquisition of Mannesmann
page 5
Analysis of the different acto
Robert H. Smith School of Business

Valuation

Case #4 Vodafone AirTouchs Bid for Mannesmann


Executive summary
Vodafone AirTouch, one of the worlds leading international mobile telecommunications
companies, was considering launching a formal hostile
Valuation of AirThread
Connections
APV & WACC Approach
Jianqiu Huang 114833532
Bochao Liang 115002548
Jie Xu 115055964
Kaixuan Zhang 114979827
Yi Zhang 115101708
Executive Summary
This
talks
Instructor: Liu Yang
our
report
about
Valuation about AirThread
MW corp
By michael_manly  Studymode.com
Draf
MW Petroleum Corporation (A)
Background:
In late 1990, the group of Amoco Corporation and Apache Corporation had begun talking
regarding the possible acquisition of MW Petroleum from Amoco to Apache. MW Petrol
Estimation on the Unlevered Free Cash Flows and Interest Tax Shield from 2008 2012:
In order to find the total value of operating assets in AirThread, we calculate the unlevered
free cash flows from 20082012 at first. For the unlevered free cash flows, w
Mercury
Athletic
Footwear Case
DCF VALUATION ANALYSIS
Jianqiu Huang 114833532
Bochao Liang 115002548
Jie Xu 115055964
Kaixuan Zhang 114979827
Yi Zhang 115101708
Instructor: Liu Yang
Executive Summary
In order to make a estimation, we collect all the basic
Digital (status quo)
Digital (optimally managed)
Control premium
2110
4524
2414
Digital (opt. managed)
Compaq (standard alone)
Combined firm
Combined firm (w/ synergy)
Synergy
4,524
38,547
43,071
45,688
2,617
Status quo
Value of control
Synergy
Total firm
Using Crystal Ball In Valuation
Professor Liu Yang
This handout illustrates how to perform a MonteCarlo simulation for DCF valuation using
Crystal Ball. The companion spreadsheet is called Valuation_CrystalBall.xls.
1. Start the Crystal Ball program and