India
3
Outlook for 2008-09
Political outlook
Domestic politics Political parties are busy gearing up for elections in some major states this year-Karnataka (in May), Madhya Pradesh, Rajasthan, Chhattisgarh and Delhi. The main event, however, is the gener

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Part I Review of Previous Lecture
Part I: Review of the FINC2001 Material
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1
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Andrew Lepone Finance Discipline University of Sydney
Market Equilibrium
If : - everyone is a mean-variance optimiser; - there are no transaction costs ie frictionless capital markets; -

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Lecture 4: Contingent Claims I: Payoffs
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Part I: Review of Previous Lecture
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Part I: Review of Previous Lecture
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Capital Structure 1
From Perfect Markets to Classical Taxation
Topics Covered
Leverage in a Perfect market How Leverage Influences Equity Returns The Debt (interest) Tax Shield The interaction of corporate taxes and personal taxes Classical Taxation and

Solutions Tutorial Week 8 Chapter 22 1. a. A five-year American call option on oil. The initial exercise price is $50 a barrel, but the exercise price rises by 5 percent per year. An American put option to abandon the restaurant at an exercise price of $5

Solutions Tutorial Week 9 Chapter 23 2. The key here is to find a combination of these two bonds (i.e., a portfolio of bonds) that has a cash flow only at t = 6. Then, knowing the price of the portfolio and the cash flow at t = 6, we can calculate the 6-y

Solutions Tutorial Week 9 Chapter 23 2. The key here is to find a combination of these two bonds (i.e., a portfolio of bonds) that has a cash flow only at t = 6. Then, knowing the price of the portfolio and the cash flow at t = 6, we can calculate the 6-y

Solutions Tutorial Week 10 Chapter 17 11. We begin with rE and the capital asset pricing model: rE = rf + E (rm rf) = 0.10 + 1.5 (0.18 0.10) = 0.22 = 22.0% Similarly for debt: rD = rf + D (rm rf) 0.12 = 0.10 + D (0.18 0.10) D = 0.25 Also, we know that:
r

Solutions Tutorial Week 11 Chapter 18 6. a. SOS stockholders could lose if they invest in the positive NPV project and then SOS becomes bankrupt. Under these conditions, the benefits of the project accrue to the bondholders. If the new project is sufficie

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LECTURE 3: INTRODUCTION: FORWARDS, FUTURES & OPTIONS
Part I REVIEW OF PREVIOUS LECTURE
Part I: Review of Previous Lecture
Review of Previous Lecture
Part I: Review of Previous Lecture
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4
India
cannot win the next general election solely on a platform of Hindu nationalism, as espoused by Mr Modi. Recognising this, in December 2007 the BJP chose the octogenarian Lal Krishna Advani as the party's prime ministerial candidate for the next ge

2
India
Executive summary
Highlights
May 2008
Outlook for 2008-09 Lacklustre state election results for the Indian National Congress party suggest that the United Progressive Alliance (UPA) minority coalition government that it leads is now likely to comp

Lecture 6
Part I Review of Previous Lecture
Review of Previous Lecture
Part I: Review of Previous Lecture
1
Summary of the Previous Lecture
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Last lecture's learning objectives.
Part II Today: Real Option Va

Banco Central de Chile Documentos de Trabajo Central Bank of Chile Working Papers
N 396 Diciembre 2006
MONETARY POLICY UNDER INFLATION TARGETING: AN INTRODUCTION
Frederic S. Mishkin Klaus Schmidt-Hebbel
http:/www.bcentral.cl/esp/estpub/estudios/dtbc. Exis

Board of Governors of the Federal Reserve System
International Finance Discussion Papers Number 762 March 2003
New Keynesian Open-Economy Models and Their Implications for Monetary Policy
David Bowman and Brian Doyle
NOTE: International Finance Discussion

The Overseas Private Investment Corporation:
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Marcus Chadwick
A thesis submitted in fulfilment of the requirements for a Doctor of Philosophy Discipline of Government and International Relatio

Solutions Tutorial Week 2 Chapter 8 14. In the context of a well-diversified portfolio, the only risk characteristic of a single security that matters is the security's contribution to the overall portfolio risk. This contribution is measured by beta. Lon

Solutions Tutorial Week 2 Chapter 8 14. In the context of a well-diversified portfolio, the only risk characteristic of a single security that matters is the security's contribution to the overall portfolio risk. This contribution is measured by beta. Lon

Solutions Tutorial Week 4 Chapter 21 13 While it is true that both the buyer of a call and the seller of a put hope the price will rise, the two positions are not identical. The buyer of a call will find her profit changing from zero and increasing as the

Solutions Tutorial Week 4 Chapter 21 13 While it is true that both the buyer of a call and the seller of a put hope the price will rise, the two positions are not identical. The buyer of a call will find her profit changing from zero and increasing as the

Solutions Tutorial Week 5 Chapter 21 23. a. Use the put-call parity relationship for European options: Value of call + Present value of exercise price = Value of put + Share price Solve for the value of the put: Value of put = Value of call + PV(EX) Share

Solutions Tutorial Week 5
Chapter 21
23.
a.
Use the put-call parity relationship for European options: Value of call + Present value of exercise price = Value of put + Share price Solve for the value of the put: Value of put = Value of call + PV(EX) Share

MARCH/APRIL 1999
Pierre L. Siklos is professor of economics at Wilfrid Laurier University, Waterloo, Ontario Canada. Material in this paper was presented at the Midwest Macroeconomics Conference held at the Federal Reserve Bank of St. Louis on April 17-19