Программа дисциплины Английский язык, 4 курс, экономика, 080100, бакалавр [Введите название дисциплины] для направления/ специальности [код направления подготовки

Вопросы для оценки качества освоения дисциплины

1. 
   What are the main disadvantages of the corporate form of organization?
   
2. 
   In most large corporations, ownership and management are separated. What are the main implications of this separation?
   
3. 
   What are agency costs and what causes them?
   

1. 
   When appraising mutually exclusive investments in plant and equipment, many companies calculate the investments’ equivalent annual osts and rank the investments on this basis. Why is this necessary? Why not just compare the investments’ NPVs?
   
2. 
   True or False?
   
   • 
     A project’s depreciation tax shields depend on the actual future rate of inflation.
     
   • 
     Project cash flows should take account of interest paid on any borrowing undertaken to finance the project.
     
   • 
     In the US, income reported to the tax authorities must equal income reported to shareholders.
     
   • 
     Accelerated depreciation reduces near-term project cash flows and therefore reduces project NPV.
     

1. 
   True or False? Why? “Diversification reduces risk. Therefore corporations ought to favor capital investments with low correlations with their existing lines of business.”
   
2. 
   “There is upside risk and downside risk. Standard deviation does not distinguish between them”. Do you think the speaker has a fair point?
   
3. 
   Respond to the following comments:
   
   • 
     Risk to me is the probability of loss.
     
   • 
     Those guys who suggest beta is a measure of risk make the big assumption that betas do not change.
     

1. 
   How could an investor identify the best of a set of efficient portfolios of common stocks? What does “beta” mean? Assume the investor can borrow or lend at the risk-free interest rate.
   
2. 
   The CAMP has great theoretical, intuitive, and practical appeal. Nevertheless, many financial managers believe “beta is dead”. Why?
   
3. 
   Fama and French have proposed a three-factor model for expected returns. What are the three factors?
   

1. 
   “The cost of capital always depends on the risk of the project being evaluated. Therefore the company cost of capital is useless.” Do you agree?
   
2. 
   “Investors’ home country bias is diminishing rapidly. Sooner or later most investors will hold the world market portfolio, or a close approximation to it.” Suppose that statement is correct. What are the implications for evaluating foreign capital investment projects?
   

1. 
   It is sometimes suggested that stocks with low price–earnings ratios tend to be underpriced. Describe a possible test of this view. Be as precise as possible.
   
2. 
   "If the efficient-market hypothesis is true, the pension fund manager might as well select a portfolio with a pin." Explain why this is not so.
   
3. 
   We suggested that there are three possible interpretations of the small-firm effect: a required return for some unidentified risk factor, a coincidence, or marketinefficiency. Write three brief memos, arguing each point of view.
   

1. 
   “The trouble with MM's argument is that it ignores the fact that individuals can deduct interest for personal income tax.” Show why this is not an objection if personal tax rates on interest and equity income are the same.
   
2. 
   Select a dozen companies from the Market Insight database (www.mhhe.com/edumarketinsight). Estimate how much more these companies could borrow before they would exhaust taxable profits.
   
3. 
   Look at some real companies with different types of assets. What operating problems would each encounter in the event of financial distress? How well would the assets keep their value?
   

1. 
   Consider another perpetual project like the crusher described in Section 19.1. Its initial investment is $1,000,000, and the expected cash inflow is $95,000 a year in perpetuity. The opportunity cost of capital with all-equity financing is 10 percent, and the project allows the firm to borrow at 7 percent. The tax rate is 35 percent. Use APV to calculate this project's value.
   

1. 
   Occasionally firms extend the life of warrants that would otherwise expire unexercised. What is the cost of doing this?
   
2. 
   If the riskiness of the firm’s assets increases, does the value of its convertible rise or fall, or can’t you say?
   
3. 
   Financing with convertible debt is especially appropriate for small, rapidly growing or risky companies. Explain why.
   
4. 
   “The company’s decision to issue warrants should depend on the management’s forecast of likely returns on the stock”. Do you agree?
   

1. 
   Examine several recent mergers and suggest the principal motives for merging ineach case.
   
2. 
   Examine a recent merger in which at least part of the payment made to the seller was in the form of stock. Use stock market prices to obtain an estimate of the gain from the merger and the cost of the merger.
   
3. 
   Respond to the following comments. a. "Our cost of debt is too darn high, but our banks won't reduce interest rates as long as we're stuck in this volatile widget-trading business. We've got to acquire other companies with safer income streams." b. "Merge with Fledgling Electronics? No way! Their P/E's too high. That deal would knock 20 percent off our earnings per share." c. "Our stock's at an all-time high. It's time to make our offer for Digital Organics. Sure, we'll have to offer a hefty premium to Digital stockholders, but we don't have to pay in cash. We'll give them new shares of our stock."
   
4. 
   Sometimes the stock price of a possible target company rises in anticipation of a merger bid. Explain how this complicates the bidder's evaluation of the target company.
   

1. 
   What are the government’s motives in privatization?
   
2. 
   What is meant by “temporary conglomerate”? Give an example.
   
3. 
   Define the following terms: LBO, MBO, spin-off, carve-out, asset sale, privatization, leveraged restructuring.
   
4. 
   What are the chief differences in the role of banks in corporate governance in the US, Germany and Japan?
   
5. 
   For what kinds of companies would an LBO or MBO transaction not be productive?
   

5. 
   Специализация «Прикладная экономика»