1 Lista - Finanças Corporativas 2020

Prévia do material em texto

1 
 
CURSO: Mestrado Profissional em Economia – 4º trimestre de 2020 
DISCIPLINA: Finanças Corporativas 
PROFESSOR: Caio Augusto Colnago Teles | caio_act@hotmail.com 
MONITOR: Paulo Vianna Jr. | pauloviannajr@hotmail.com 
 
Lista 1 
 
1- What is the main purpose of the firm? Justify. 
A) To ensure survival for a perpetual period. 
B) To maximize the upcoming revenues and net profits. 
C) To achieve the highest possible stock price. 
------------------------------------------------------------------------------------------------------------------------------ 
2- What is limited liability? Present and discuss the pros and cons of this kind of structure. 
------------------------------------------------------------------------------------------------------------------------------ 
3- What are the main differences between a limited partnership and a corporation? 
------------------------------------------------------------------------------------------------------------------------------ 
4- Name who is responsible for: 
• Determining the long-term objectives of the corporation. 
• Overseeing the managers of the firm. 
• Controlling the cash accounts and financial obligations. 
• Running the corporation. 
• Internal accounting. 
• Investment and financing decision make. 
------------------------------------------------------------------------------------------------------------------------------ 
5- You have decided to form a new start-up company developing apps for smartphones. Give 
examples of two distinct types of financial and investment decisions each you will need to make. 
------------------------------------------------------------------------------------------------------------------------------ 
6- What is the difference between real and financial assets? 
------------------------------------------------------------------------------------------------------------------------------ 
7- You are the CEO of a company and you are considering entering into an agreement to have 
your company buy another company. You think the price might be too high, but you will bet the 
CEO of the combined, much larger company. You know that when the company gets bigger, your 
pay and prestige will increase. What is the nature of the agency conflict here and how is it related 
to ethical considerations? 
------------------------------------------------------------------------------------------------------------------------------ 
 
2 
 
8- Ms Espinoza is a retiree who depends solely on her investments’ income. Mr Liu is a young 
director and desires to save for the future. Both are shareholders from SpaceShipOne LLC (SSO), 
a tourism company which plans to step into space tourism segment. The nature of the project 
implies that the company will yield dividends to shareholders only in the long run. Considering 
that SSO has positive NPV for Mr Liu, explain why this investment would suit to Ms Espinoza 
interests as well. 
------------------------------------------------------------------------------------------------------------------------------ 
9- Financial managers may work for shareholders’ interests in a variety of ways, such as: 
a- Enhancing the stockholders’ wealth the highest possible, investing in real assets. 
b- Changing the company investment plans in order to help shareholders to achieve a 
specific consumption pattern. 
c- Taking a mix of high risk / low risk assets to fit the shareholders risk profile. 
d- Helping balance the shareholders payments. 
However, in a well-organized financial market the shareholders will opt only one of these 
goals. Which is the goal and why it’s the only required one? 
------------------------------------------------------------------------------------------------------------------------------ 
10- Consider the following alternatives: 
i. $100 received in one year 
ii. $200 received in five years 
iii. $300 received in ten years 
Rank the alternatives from the most to the least valuable if the interest rate is: 
a. 20% per year. 
b. 5% per year. 
------------------------------------------------------------------------------------------------------------------------------ 
11- Two years from now, a client will receive the first of three annual payments of $20,000 from 
a small business project. If she can earn 9 percent annually on her investments and plans to 
retire in six years, how much will the business project payments be worth at the time of her 
retirement? 
------------------------------------------------------------------------------------------------------------------------------ 
 
3 
 
12- A perpetual preferred stock position pays quarterly dividends of $1,000 indefinitely 
(forever). If an investor has a required rate of return of 12 percent per year compounded 
quarterly on this type of investment, how much should he be willing to pay for this dividend 
stream? 
------------------------------------------------------------------------------------------------------------------------------ 
13- A client can choose between receiving 10 annual $100,000 retirement payments, starting 
one year from today, or receiving a lump sum today. Knowing that he can invest at a rate of 5 
percent annually, he has decided to take the lump sum. What lump sum today will be equivalent 
to the future annual payments? 
------------------------------------------------------------------------------------------------------------------------------ 
14- Waldrup Industries is considering a proposal for a joint venture that will require an 
investment of $13 million. At the end of the fifth year, Waldrup’s joint venture partner will buy 
out Waldrup’s interest for $10 million. Waldrup’s chief financial officer has estimated that the 
appropriate discount rate for this proposal is 12 percent. The expected cash flows are given 
below. 
Year Cash Flow (C$) 
0 −13,000,000 
1 3,000,000 
2 3,000,000 
3 3,000,000 
4 3,000,000 
5 10,000,000 
A. Calculate this proposal’s NPV. 
B. Make a recommendation to the CFO (chief financial officer) concerning whether 
Waldrup should enter into this joint venture. 
------------------------------------------------------------------------------------------------------------------------------ 
15- Consider two investors, A and B, that are deciding how to invest their financial wealth of 
$100,000. They both have the same investment horizon of 1 year. However, they have different 
risk profiles. Whereas investor A is risk neutral, investor B is totally risk averse. Suppose that in 
this economy, there are only two types of financial assets. One risk-free asset that pays 10% per 
annum. And another, risky asset, that costs $100 and pays, in one year, $125 in a good market 
scenario and only $100 in a poor market scenario. 
a) If the likelihood of each scenario is 50%, how the investors would allocate their 
financial wealth? 
b) Now, consider that there is an investment opportunity in real assets that costs 
$100,000 and pays $500,000 or zero in, respectively, good and poor market 
scenarios. What each investor should do? Why?