Corporate Finance

Corporate Finance Assignment

Assignment Code: 2014CF Last Date of Submission: 28th March 2014

Section-A 1. Explain the organization chart of finance function in a typical organization. What is the key function of each role/position? Explain the difference between the treasury and controller function. What are the various tools used in Financial Management. Explain five financial tools in details with examples. What are the different valuation approaches used to value an unlevered firm as well as a levered firm. Will the value of the company differ according to the different approaches? Explain with example. What is a capital investment decision? Which all decisions would be considered a capital investment decision? Write short notes on all of them. Read the Harvard Business Review article (Sept- Oct 1989) 'Must Finance and Strategy Clash? by Barwise, March and Wensley. Summarize and comment on their views on the questions How do venture capital investors value their investment in a company? What are some of the factors that could influence this valuation? (the length: 10-15 pages)

Section B Case Study 1 You work in Walt Disney Company's corporate finance and treasury department and have just been assigned to the team estimating later today. You quickly realize that the information you need is readily available online. 1) Go to http://finance.yahoo.com. under " Market Summary," you will find the yield to maturity for the ten year treasury bond listed as "10 Yr Bond (%)." Collect this number as your risk-free rate. 2) In the box next to the "Get Quotes" button, type Walt Disney's ticker symbol (DIS) and click search. Once you see the basic information for Disney, find and click "Key Statistics" on the left side of the screen. From the key statistics. collect Disney's market capitalization (its market value of equity), enterprise value (market value equity + net debt), cash and beta. 3) To get Disney's cost of debt and the market value of its long term debt, you...