Corporate finance

1.0 Definition, Legal nature, types and the Effects of Mergers 1.1 Definition Merger is a combination of two existing companies to form one company. That is, it is the transfer of undertaking and liabilities from one company to another company. According to Marof , Chiplin and Wright , they have all defined merger as a combination of the assets and liabilities of two firms to form a single business entity. Under the Kenyan companies Act, mergers has been defined as either a transfer of…

6.1. CAIRN-VEDANTA DEAL I n August 2010 Vedanta Resources Plc (“Vedanta”), a company listed on the London Stock Exchange, announced it proposal to purchase 51% controlling stake in Cairn India (“Cairn India”), for a consideration of (reportedly) USD 9.6 billion. Cairn India is a subsidiary of Cairn Energy Plc, a listed entity in the United Kingdom, a leading player in the Indian oil and gas industry. The deal was structured to include a non-compete fee into the price of the shares of the…

ARABESQUE no. 1 Title & opus/catalogue no.: Arabesque No.1. Andantino con moto Composer background: Achille-Claude Debussy was a French composer. Him, along with Maurice Ravel were the most outstanding people related to Impressionist music. He was among the most influential composers of the late 19th and early 20th centuries. His music is noted for its sensory and sonic content and the use of nontraditional tonalities. The French literary technique of his period was known as Symbolism. This…

The Problem Overview Snapchat recently announced that they will be selling sponsored branded lenses to companies for a fee of up to 750,000. The two questions that arise from this deal is which companies are Snapchat going to chose to feature on their sponsored lenses? And the second question is will companies pay for this one-day feature in which Snapchat will create a lens for the specific company? Right now Snapchat’s revenue stream is coming from Advertising and a part of the phone…

critically evaluate in this essay derive from the finance industry. I will use the financial bodies involved, which are the CISI and the ICAEW to portray the steps needed which may increase the chances of gaining access to the finance sector. One of my preferred career options is investment banking, I will talk about the capital markets programme provided by the CISI to gain exposure towards this career path. Another option as a career for me is corporate finance for which I will use the ICAEW…

Section 4 The Investment banking industry provides a wide range of career opportunities, especially for people with a penchant and fondness of finance or corporate finance. Some of the most prominent career opportunities in investment banking include capital markets, sales or trading, corporate finance, and securities research or analysis. Each career path or area of investment banking offers a unique set of opportunities and challenges for professionals along with varying income levels. Each…

covenant with others. It is important to strive to serve one another and be accountable to each other (Fischer, 2011). Time Value of Money and the Bond Market Two of the most important concepts in finance are the time value of money and the bond market. “Time value of money is a very important topic in finance because it represents the building block and basic tool for many other fundamental topics such as bond valuation, stock valuation, capital budgeting, and options valuation” (Martinez,…

profession in finance comes with the same if not more stress, struggles and tribulations. However, once I have gained the knowledge and proficiency needed to be successful in my field of work, the rewards begin to outweigh the risk. Finance can be described as the study of money and how it is managed, and the actual process of acquiring needed funds. This is primarily because we live in an affluence driven world. Businesses and individuals all need money to survive. The three main types of…

Corporate finance researchers suggest three theoretical models that can help identify which firm characteristics determine corporate cash holdings decisions. Thus, the corporate cash holding determinants have since been a subject of explanation in the framework of: the trade-off theory, financial hierarchy theory and free cash flow theory. 2.1.1 Trade-Off Theory The literature on trade-off model about cash explicitly applied to companies is usually traced back to Tobin (1956), and Miller and…

capital. Thus, if cost of capital is affected due to change in proportion of debt and equity then capital structure management is clearly an important area of research. In general, finance managers attempt to choose the best combination of debt and equity on the basis of costs and benefits connected with each source of finance to create value for shareholders. Since the seminal study of Modigliani & Miller (1958) researchers have explored the impact of firm-related, industry-related and…