Lessons learned finance - s2
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The document provides key lessons and takeaways from a managerial finance course. It defines important concepts like nominal and real returns, diversifiable and non-diversifiable risk, and the capital asset pricing model (CAPM). It also outlines how to calculate bond yield, a firm's cost of capital using weighted average cost of capital (WACC), and discusses the refunding process for bonds. Other topics covered include internal rate of return (IRR), net present value (NPV), working capital, and the cash conversion cycle. Derivatives like warrants and interest rate swaps are also briefly explained.
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The document provides lessons learned from a course on change management, leadership, and cross-cultural management. It outlines keys to successful management including managing power, ideas, and tension. A framework is presented for assessing situations, planning work, making strategic decisions, and focusing on the right priorities. Managers are advised to develop their people, remove obstacles, and look for ways to promote employees.
Lessons learned hr - s6
The document provides an overview of key lessons learned from a course on strategic human resource management. It summarizes several linked HR processes and models like pay and benefits. It also outlines several important employment laws regarding at-will employment, ADA, FMLA, FLSA. Additionally, it discusses job analysis and design, succession planning and development, training frameworks, performance evaluations, and defined benefit retirement plans.
Lessons learned econ - s1
1) The document discusses key lessons learned from a microeconomics course including factors that influence firm boundaries such as economies of scope and scale.
2) It also covers market structures like monopoly, perfect competition, and oligopoly. Metrics for measuring market concentration include the Herfindahl index.
3) Porter's Five Forces framework and value chain are presented for industry analysis.
Lessons learned corporate finance - s5
1) The document outlines key lessons learned from a corporate finance course, including that companies should choose projects and capital structures that maximize shareholder value.
2) Capital budgeting involves finding and analyzing long-term investment projects using techniques like payback period, NPV, and IRR to select projects that maximize shareholder value.
3) When raising external equity or debt, companies should consider the various financing options and terms to minimize their overall cost of capital.
Lessons learned accounting - s1
This document summarizes key lessons learned from an accounting course for managers. It covers topics like economic profit, business continuity planning, important financial ratios to analyze companies, understanding different types of costs, and how to properly allocate indirect costs. The summaries are meant as a high-level "cheat sheet" to help with current and future roles.
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50pct alpha xavier saa s aggressive growth fund project - prospectus pitch
50pct alpha xavier saa s aggressive growth fund project - prospectus pitch
Lessons learned finance - s2
- 1. Lessons Learned Managerial Finance
- 2. Disclaimer This is not intended to be a condensed outline of the course, but simply what I took as key takeaways. In some courses there are many areas discussed that aren’t contained in these slides, as they are items I was already familiar with and didn’t feel the need to document or felt they wouldn’t be useful to me in my current career. I think of these as my “cheat sheet” of material that can help me in my current & future roles and are DRAFT…like Google’s Beta are subject to change – Matt Crane Scanlon, Bill. (2010). Course presented on Managerial Finance. Miami University, Oxford & Cincinnati, OH.
- 3. • Returns: – Nominal: stated (e.g. APR) – Real: nominal – inflation • Coefficient of variation: std dev/exp rtn (how many units of risk per unit of return) • Diversifiable risk: company unique, non- systematic • Non-diversifiable risk: market, systematic
- 4. Bond yield • CAPM/Rqd Return: Risk Free Rate + (Mkt Rqd Return – Risk Free Rate * Beta) • Yield to Maturity (YTM): annual return (yield) % of bond if held until maturity – Current price: $1313.87 (PV) – Coupon interest: 6.8% APR (6.8% x 1000 = 68 / 2 = 34 semi- annually = PMT) – 1000 = FV – 16 years until maturity (payments left = 32 - M) – CPT I/Y = 2.05 (2.05 x 2 = 4.1 YTM)
- 5. Firm Cost of Capital • Cost of long-term debt: YTM x (1 – tax rate) • Cost of preferred stock: Dividend / Stock Price • Cost of equity: Dividend / Stock Price x Growth • CAPM: RF Rate + (Rqd Rtn Mkt - RF Rate)1 x Beta • Find WACC – Find Bond yield from FINRA – Find avg corp tax rate from Income Statement – Find current price of Preferred and dividend yield – Calc avg dividend growth (5-10 years) – Avg Bond Yield, CAPM, dividend growth = cost of equity – LTD weight = LTD + current portion of LTD from BS – Preferred Stock = preferred price x (# of shares) – Common equity weight = price x (# of shares) 1 Add 4% to pretax bond yield to get market risk premium
- 6. Refunding process - Bonds • Yes, if NPV > 0 • Float costs are capitalized and amortized as non-cash over life of bond (tax deduct) • Unamortized floatation costs of old bond = write-off against income at refunding
- 7. IRR, NPV, Working Capital • IRR: interest rate where NPV = 0 – IRR > “hurdle rate” (WACC) = Accept • NPV: present value of future cash flows • Working Capital: management of Current Assets & Current Liabilities • Net Working Capital: CA – CL • Cash Conversion Cycle for working cap.: – Days Sales in Inventory + DSO – Days Purchases Outstanding
- 8. Replacement Project Example
- 9. Derivatives • Warrants: call options written by company • Swap: swapping floating for fixed debt, or vice versa