Deneme Sınavı Soruları

Loan Risk

Credit Risk

Portfolio Risk

Market Risk

Lending Risk

equity prices

human errors

personnel management problems

accidents

commercial disputes

Open-market repurchase

Dutch Auction

Targeted repurchase

Stock split

Tender Offer

Excessive optimism

Poor due diligence

Inflated prices

Inaccurate valuations

Culture clash

A company can repurchase stock to distribute excess cash without changing the amount of dividends.

When a company has more equity than its target capital structure, the company can directly change its capital structure by repurchasing.

A stock repurchase can be also used to protect against takeover attempt.

Due to the signaling effects, stock repurchase is perceived as a positive signal that the company’s stock is undervalued in the financial markets.

Repurchases have a tax advantage over dividends due to the deferred tax on capital gains.

Consolidation

Acquisition

Merger

Business alliance

Corporate restructruring

isolation

surveillance 

maintenance

subjugation

collaboration

Quantifying Risk 

Liquidity Risk 

Operational Risk 

Credit Risk 

Market Risk

Market Risk

Credit Risk

Liquidity Risk

Value-at-Risk

Operational Risk

Old shares of stock is split into three new shares

The number of shares outstanding triples

The par value of each share is reduced to one-third of the pre split value

Book value per share after the split is the same as the book value per share before the split

The market capitalization after the split is the same as the market capitilization before the split

licensing

international joint venture

fully owned subsidiaries 

franchising

exporting

The risk associated with capital gains is higher than that with dividends

Investors value a dollar of expected dividends more highly than a dollar of expected capital gains

When a company decides to distribute more dividends, the required rate of return on equity decreases  

A company’s value will be maximized by setting a high dividend payout ratio

Investors are indifferent between dividends and capital gains

It estimates VaR by first assuming that a portfolio comprises a small number of risk factors. 

Each risk factor is assumed to be drawn from some known theoretical distribution. 

The statistical distributions of  individual risk factors are combined to yield a single theoretical distribution for the returns of the entire portfolio. 

It is generally used with a normal distribution, which significantly facilitates its calculation. 

Variance-covariance (VCV) method is  known as a non-parametric method. 

Net Income approach

Net Operating Income approach

Traditional aproach

Modigliani and Miller Capital Structure Theory

Signalling Theory

International bonds are issued in a country by a domestic entity.

A Eurobond is a bond issued in multiple countries but denominated in a single currency and those bonds have become an important way to raise capital for many international companies and governments.

A Eurobond is denominated in returnsas the company's stock other than that, of its country of issue. 

 Eurobond  the stock market is unpredictable it is very easy to lose money by investing in the wrong stocks.

A Eurobond is an national bond that is denominated in a currency not native to the country where it is issued. 

I and II

III and IV

I, II and III

II, III and IV

I, II, III and IV

Net Income Approach

Net Operating Income Approach

Traditional Approach

Modigliani and Miller Capital Structure Theory

Trade-Off Theory

I and II

III and IV

I, IV and V

II, III, IV and V

I, II, III, IV and V

I, II and III

III, IV and V

I, II, III and IV

I, II, IV and V

II, III, IV and V

Covenant compliance fees.

Arrangement fees.

Lease.

Professional advice.

Interest.