Exercise 1
Group 1
He Xuerui
Liu Qi
Liu Chenhui
Wu Xintong
Yu Shangning
Yang Lingyu
Cost of Equity for Various D/V Ratios
Rf
equity risk premium
u
Tax rate
V
Input
9%
5.50%
0.94
34%
16459
Output
D/V
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
Notes
Lecture 2 Interest Rates,
Forwards and Swaps
FNCE6008Derivativesanalysis
By Jianfeng Hu
Singapore Management
University
1
Agenda
Interest rates and forward contracts
Forward pricing
Swaps
2
I. Interest rates and forward contracts
3
Rates
Practitioners
A) WACC Approach
The value of a firm is given by
V=
(1 r
FCFFt
wacc )
t 1
rwacc
where
Step 1:
t
D
E
(1 t )rd
re
DE
DE
Compute the cost of equity for various D/E ratios
a)
Estimate the firm's current equity beta and Debt/Equity ratio.
b)
Compute the fir
78 / British Airways 2008/09 Annual Report and Accounts
Balance sheets
At March 31, 2009
Group
million
Non-current assets
Property, plant and equipment:
Fleet
Property
Equipment
Intangibles:
Goodwill
Landing rights
Software
Investments in subsidiaries
In
Capital Structure
Benedict Koh
Professor of Finance (Education)
Singapore Management University
Capital Structure
1)
2)
3)
4)
5)
6)
Capital structure of firms
Comparison of Debt and Equity
Types of financing
Practical Approaches of determining
Optimal Cap
The Lee Kong Chian School of Business
Master of Science in Applied Finance
Academic Year 2016/2017
Term 4
COURSE CODE:
COURSE TITLE:
Instructor
Title
Email
Tel
Office
FNCE643
ADVANCED CORPORATE FINANCE
: Benedict Koh, Ph.D.
: Professor of Finance (Educati
Mini Case on loan structuring
A Singaporean SME, Seagull Ltd, is considering buying two airplanes to enter the cargo
freight business in China. The economic lifespan of the plane is 25 years. Seagull has
done a thorough evaluation of this investment and a
Lecture 1
Topic
Optimal Capital Structure
Lesson Objectives
1. Understand the key differences between debt and equity
2. Know the steps of arriving at the optimal capital structure for a
company
3. Know how to structure debt for a company
Handout
1. Capit