Principles of Corporate Finance

u Control, Governance, and Financial Architecture Principles of Corporate Finance Brealey and Myers Sixth Edition Chapter 34 ...

Topics Covered w Leveraged Buyouts w Spin-offs and Restructuring w Conglomerates w Private Equity Partnership w Control and Gove ...

Definitions w Corporate control -- the power to make investment and financing decisions. w Corporate governance -- the role of t ...

Leveraged Buyouts w The difference between leveraged buyouts and ordinary acquisitions: A large fraction of the purchase price ...

Leveraged Buyouts w The three main characteristics of LBOs: High debt Incentives Private ownership ...

Leveraged Buyouts Acquirer Target Year Price ($bil) KKRKKR RJR NabiscoBeatrice^19891986 $ $^ 24.726.25 Thompson Co.KKR SafewaySo ...

Spin-offs, etc. w Spin off -- debut independent company created by detaching part of a parent company's assets and operations. w ...

Privatization w Motives for Privatization: Increased efficiency Share ownership Revenue for the government ...

Privatization Amount Issued, Country Company and Date $ millions France St. Gobain (1986) $ 2,091.40 France Paribas (1987) $ 2,7 ...

Conglomerates Sales Rank Company Numebr of Industries 158 ITTTenneco^3828 4251 Gulf & Western IndustriesLitton Industries (^ ...

Private Equity Partnership Investment Phase Payout Phase General Partner put up 1% of capital General Partner get carried intere ...

u Conclusion: What We Do and Do Not Know about Finance Principles of Corporate Finance Brealey and Myers Sixth Edition Chapter 3 ...

Topics Covered w What We Do Know w What We Do Not Know ...

7 Most Important Ideas in Finance w Net Present Value w Capital Asset Pricing Model (CAPM) w Efficient Capital Markets w Value A ...

10 Unsolved Problems In Finance w How major decisions are made? w What determines project risk and PV? w Risk and return - What ...

10 Unsolved Problems In Finance w How can we explain the success of new markets and new securities? w How can we resolve the div ...