Consumer Surplus
Marshallian and Hicksian
Meaning of Consumers Surplus
The concept of consumers surplus is believed
to have been originated by a French engineer
Arsene Julius Dupit in 1844 in his effort to
measure social benefit of such collective goods
Session 3. :Acquisition
Valuation Part B
PGP II, IIM INDORE
Key Takeaways from Session 2
M&A deals create value for acquirers from ROW (non-UUC)
Overpayment, high premiums make acquirers in UUC to destroy value
FCFF Cash-flows, appropriate discount rate:
Table of Contents
DEFINING & MEASURING VAR.2
LINEAR VS NON LINEAR DERIVATIVES.5
METHODS FOR MEASURING VAR .7
VAR AND CASH FLOW AT RISK . 13
MARGINAL VAR & INCREMENTAL VAR . 15
VAR MAPPING . 17
SIMULATION METHODS.
Session 2. : M&A Performance,
Acquisition Valuation
PGP II, IIM INDORE
Cases Individual Assignments
Cases (Individual
submissions): 20%
Sun Microsystems Not more than 25 students
Due by: Wednesday, 22nd June, 2016, 7.30 pm
RJR Nabisco Not more than 25
Session 4: LBO Valuation
PGP, IIM INDORE
Value of a Target Firm
Value created for
Target Co. shareholders
Standalone
Value
Value created for
Acquirers shareholders
Acquisition Price
Potential Range for Acquisition
Price
Value with
Synergies
Leveraged Buyo
Session 4. Investment Analysis
FINANCE II
PGP, IIM INDORE
Equivalent Annual Cost Approach:
Projects with Unequal Lives
Investments of Unequal Lives
There are times when application of the NPV rule can lead to the
wrong decision. Consider a factory that mu
Session 5 and 6.
Basics of Cost of
Capital
FINANCE II
PGP, IIM INDORE
Discount rate
An appropriate rate that reflects the riskiness of cash flows
The denominator in the NPV
Risk
Likelihood that we will receive returns that are different from the returns
General Agreement on Trade
in Services (GATS)
Siddhartha K. Rastogi
IIM Indore
GATS Introduction
Finalized during Uruguay round, GATS came in force in January 1995
First and only set of multilateral rules governing international trade in services
Appli
RTA PTA FTA
Siddhartha K. Rastogi
IIM Indore
Cover of the
WORLD TRADE REPORT 2011
RTAs Latest Trends
Surge in RTAs began with EEC (1957) and spurted with WTO
Till July 2016 - 635 RTAs have been notified to GATT/WTO (counting goods,
services, and accessi
Ms. P. ALLI
Assistant Professor (Jr.)
Economics Division
SSL
Mobile: 9486310913
Consumer Preferences and Demand Analysis
Why do we need to study the consumers
behaviour?
Predicting consumers choices is important both to businesses
and policy makers
A ge
Demand Analysis
Concept of demand
Law of Demand: The law of demand states that the
quantity demanded of a good falls when the price
of the good rises, and vice versa, provided all other
factors that affect buyers decisions are unchanged
Demand for a com
Concept of Elasticity
Elasticity
Elasticity measures the magnitude of market
reactions to changes in price caused by shifts
in demand or supply. It is expressed as a
ration of percentage change of one variable
(say, X) relative to the percentage change o
Production Function
The production function
Definition: The production function expresses
a functional relationship between quantities
of inputs and outputs. It shows how and to
what extent output changes with variations in
inputs during a specific perio
Pristine Careers
www.pristinecareers.com | www.eneev.com
Valuations and Value At Risk
Level - I
Agenda
Introduction to Risk & VaR : Practical Applications
VaR Models
Scenario Analysis
Stress Testing
Extending VaR for Operational Risk www.pristinecareers.c
