N Advanced Corporate Finance Getting started E 00 m UESTC-Webster University FINC 5880 Chengdu-P.R C. Spring 2005
Advanced Corporate Finance Getting Started ! UESTC-Webster University FINC 5880 Chengdu-P.R.C. Spring 2005
100 BEST COMPANIES df Agenda TO WORK FOR 2005 Ing or co rate high with employees 口 Introduction Your team ■ Your s&P500 company Your feed back(FCF 2004 and WaCc% of your teams company a Introduction Dividend policy(ch 15 口 Your homework. 口 In the news
Agenda Introduction ◼ Your team ◼ Your S&P 500 company ◼ Your feed back (FCF 2004 and WACC% of your team’s company) Introduction Dividend Policy (ch. 15) Your homework… In the news…
For the pro's McKinseyQuarterly 口 Use yahoo finance. YAHOO! FINANCE D Use bloomberg 口 Use sec( EDGAR) Bloomberg.com d Look at the business news (Economist Fortune etc.) Economist. com d Follow the financial markets 日 Follow the news on your team's company REUTERS KNOW NOW a Update your financials Whenever new financials are released FT. com d Use the latest latest latest FINANCIAL TIMES financials FORTUNE
For the Pro’s Use Yahoo Finance… Use Bloomberg Use SEC (EDGAR) Look at the business news (Economist, Fortune etc.) Follow the financial markets Follow the news on your team’s company Update your financials whenever new financials are released Use the latest latest latest financials!
Most admired companies 口Rank:1 RB Wal-Mart Eight Key Attributes of Reputation* k *Score past FFY ash Haner 5 years 口 Innovation owe 日 Employee talent a Use of corporate assets John Muggenborg 口 Social responsibility a quality of management 口 Financial soundness WAL+MART a Long-term investment value ALWAYS LOW PRICES.Alaa a Quality of products/services
Most admired companies… Rank: 1* Wal-Mart Eight Key Attributes of Reputation**Score past 5 years Innovation Employee talent Use of corporate assets Social responsibility Quality of management Financial soundness Long-term investment value Quality of products/services
Your feedback. 日 Remember; ■ Products and markets Financial performance (profitability FY 2000- 2004) anuary 22 Value creation(share price FY 2000-2004) ■ FCF and wacc%( apply your knowledge) Using the phenomenal success of the iPod, steve Jobs is having another go at ■ Latest news on your the mass market for computers company
Your feedback… Remember; ◼ Products and Markets ◼ Financial Performance (profitability FY 2000- 2004) ◼ Value creation (Share price FY 2000-2004) ◼ FCF and WACC% (apply your knowledge) ◼ Latest news on your company… Using the phenomenal success of the iPod, Steve Jobs is having another go at the mass market for computers
How we will run the classes.(as a business a will begin 8.30 AM sharp(synchronize Be in time(even when it snowsa.we enovo联想 SE our watches please 联合打造金 颁导企业 ombination c D Do not bring your entire breakfast to PC leader the class room pl ease a Switch of your mobiles; exceptions be made for emergencies but you w have to tell me in adyance D Make sure that if you bring your laptop that the battery is fully charged. use flash memory) D Make sure your flash memory is compatible with the pc you will use to show your Ppt's D We will have one break during the morning before lunch and one break RACL∈ after lunch in the afternoon for the A sprint afternoon class ...(10.05-10.25 am and 14.35-15.05 pm). you can ask individual /team questions in that NEXTEL period
How we will run the classes…(as a business) Be in time (even when it snows…) we will begin 8.30 AM sharp (synchronize your watches please) Do not bring your entire breakfast to the class room please… Switch of your mobiles; exceptions can be made for emergencies but you will have to tell me in advance… Make sure that if you bring your laptop that the battery is fully charged…(use flash memory) Make sure your flash memory is compatible with the PC you will use to show your PPT’s We will have one break during the morning before lunch and one break after lunch in the afternoon for the afternoon class … (10.05-10.25 am and 14.35-15.05 pm)…you can ask individual/team questions in that period…
Exams and portfolios 口 You will work in teams a You will work on a s&P 500 company of your teams choice Term portfolio and Fina/o a You will have to hand in m Portfolio of all assignments d You will have no mid term exam only a final exam a All other information you can Feel overloaded find in the syllabus… 百 Any questions?
Exams and Portfolio’s You will work in teams You will work on a S&P 500 company of your team’s choice You will have to hand in Mid Term portfolio and Final Portfolio of ALL assignments… You will have No mid term exam only a final exam All other information you can find in the syllabus… Any Questions? Feel overloaded ?
What is(advanced)corporate fⅰ nance? a Corporate Finance, Any decision involving the use of money by a business.everything a business does) 日 Advanced= Applied= getting your hands dirty work work work 口FUN!(Ⅰ know it sounds sick. but it is true once you get on top of it.)
What is (advanced) corporate finance? Corporate Finance: “Any decision involving the use of money by a business …(everything a business does)” Advanced=Applied= getting your hands dirty…(work, work, work…) FUN! (I know it sounds sick…but it is true once you get on top of it…)
What is it about? d 1Investment decisions of companies RoC versus a hurdle rate WACC% o B 2)Financing decisions of companies Lowest WACC% and target capital structure d 3In case the company has enough cash but not enough good ideas, how and what of cash to return to shareholders D Essentially all of these decisions 顶 have to do with valuation the value you can put on a business
What is it about? 1)Investment decisions of companies ◼ ROC versus a hurdle rate (WACC%) 2)Financing decisions of companies ◼ Lowest WACC% and target capital structure… 3)In case the company has enough cash but not enough good ideas…how and what of cash to return to shareholders… Essentially all of these decisions have to do with valuation…the value you can put on a business…
Fresh Up your knowledge 口 You did fino5000 You learned financial ratio ' s You learned time value of Money ■ Risk and return a Valuation-WACC% and FCF ■ Capital Budgeting(NP∨ IRR% and PBp)
Fresh Up your knowledge You did FINC5000 ◼ You learned Financial Ratio’s ◼ You learned Time Value of Money ◼ Risk and Return ◼ Valuation-WACC% and FCF ◼ Capital Budgeting (NPVIRR% and PBP)