Thammasat Business School Thammasat University
Course Syllabus
Semester/ Academic Year: 1st / 2014 (MIF# 16)
MF641 Corporate Finance Theory
Course Description
This course explores the core theoretical aspects of modern corporate finance which is grounded
Solution
PROBLEM SET #3
VALUING PROJECTS AND FIRMS
1. A proposed overseas expansion has the following cash flows.
Year
Cash flows
0
1
2
3
4
-100
50
40
40
15
Calculate the payback, the discounted payback, NPV at a required rate of 15 percent, and the
IRR o
Solution
PROBLEM SET #2
TIME, MONEY, AND INTEREST RATES
1. It has long been told that the Dutch purchased Manhattan Island in 1626 for the value of 60
guilders ($24). Assuming that the Dutch invested this money into an account earning 5%,
approximately ho
Solution
PROBLEM SET #5
CAPITAL STRUCTURE
1. Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000
in a strong economy, with each outcome being equally likely. The initial investment required for
the project is $80,0
Solution
PROBLEM SET #4
RISK AND RETURN
1. The table below shows the one-year return distribution for stock A and B.
Stock A
Return Probability
Stock B
Return Probability
R
-25%
-10%
0%
10%
25%
R
-100%
-75%
-50%
-25%
1000%
pR
10%
20%
15%
25%
30%
pR
40%
20
PROBLEM SET
(REVISION)
Question 1:
You are considering how to invest part of your retirement savings. You have decided to put
$200,000 into three stocks: 50% of the money in GoldFinger (currently $25/share), 25% of the
money in Moosehead (currently $80/sh
Petrolera Zuata, Petrozuata C.A.
Li Peng [5702042119]
Pichaya Ruangdejvorachai [5702042317]
Nattawat Kittisommanakun [5702042168]
Summary of the Project
Petrozuata
Project Place
Orinoco Belt [Central Venezuela]
Project
Timeframe
1996-2002 [Construction pe
Research Insight
Foundations of Factor Investing
Jennifer Bender
Remy Briand
Dimitris Melas
Raman Aylur Subramanian
December 2013
msci.com
Research Insight
Foundations of Factor Investing
December 2013
Executive Summary
Factor investing has become a widel