Deneme Sınavı Soruları

Capital Transfers

International Trade

Loan

Long-Term

Official

Strength of banking system

Forward exchange rates

Uncovered interest arbitrage

Black market in currencies

Portfolio investment

Human error 

Fraud

Information system failures

Natural disasters

Bankruptcy

Interest Rates

Market Prices

Selling Prices

Market Rates

Shopping Rates

Companies can issue stocks without any costs,

There are no taxes and transaction costs,

The markets are perfectly efficient,

Investors are completely rational,

The retained account has decreased,

Quantifying Risk 

Liquidity Risk 

Operational Risk 

Market Risk

Credit Risk

Dividend Date

Record Date

Last Date

Due Date

Deadline Date

Bargain Risk

Functional Risk

Classical Risk

Credit Risk

Loan Risk

Financial manager

Oligopolistic structure

Franchisee

Franchiser

A clearinghouse

Company may distribute excess cash without changing the amount of dividends.

Repurchases may help minimize the “dilution effect” associated with exercising the stock options.

A company's stock repurchase causes investors to sell their shares.

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

The company can directly change its capital structure by repurchasing.

Stock split

Stock dividend

Buyback

Clientele effect

Targeted Repurchase

I and II

I and III

II and IV

I, II and III

I, II, III and IV

Capital structure suggests that agency problems may arise if managers (agents) pursue different objectives other than those of the shareholders (principals).

An Appropriate Capital Structure is that capital structure at that level of debt – net income proportion.

The capital structure is how a firm finances its overall operations and growth by using different sources of funds.

A company raises new capital, it will focus on maintaining this target or optimal capital structure.

The optimal capital structure is estimated by calculating the mix of debt and equity and free cash flows are capitalized at the calculated WACC to determine the firm value.

decreasing the leverage ratios

reducing the costs of funding

maintaining the sponsor’s financial flexibility

reducing corporate taxes

improving risk management

ROIC=Capital/NOPAT=EBIT*(1-T)/Capital

ROIC=NOPAT/Capital=EBIT*(1-T)/Capital

ROIC=EBIT/Capital=NOPAT*(1-T)/Capital

ROIC=NOPAT*(1-T)/Capital=EBIT/Capital

ROIC=EBIT*(1-T)/Capital=NOPAT/Capital

Factors that affect the capital structure are:   tangibility, firm size, profitability, and   free cash flows.

Other factors are structure of assets, non-debt tax shields, profitability, size of the company and free cash flow.

Factors that affect the capital structure are, economic environment, industry specific factors and firm-specific factors.

It is important for a company to have an appropriate capital structure

There are two types of capital structure according to the nature and type of the firm, viz, (a) simple and (b) complex. a. simple: when the capital structure is composed of equity capital only or with retained earnings, the same is known as simple capital structure.

when one firm is provided different information about the market 

when one party from a financial transaction has different information than the other.

when one party from a financial transaction does not have different information 

when one party in a company has similar information to the other.

when one party from a financial transaction has different information than the other

I, II and III

II, III and IV

I, II, III and IV

I, II, III and V

II, III, IV and V