Corporate Finance - Part 4

Corporate Finance - Part 4

Overview

This tutorial looks at the importance of synergy in determining the ultimate value of an acquisition. It describes how acquisitions can be quantified and valued using a free cash flow or an economic profit approach. Synergy is discussed as the primary driver of value in the analysis of acquisition candidates, and the need to quantify the synergies properly is addressed. This tutorial looks at the reasons why dividend policies differ between companies. We examine in detail the Modigliani-Miller approach to dividend policy.

Objective

On completion of this tutorial, you will be able to:
- Outline the reasons why a company may want to engage in an acquisition
- Quantify an acquisition using a free cash flow (FCF) approach
- Quantify an acquisition using an economic profit approach, and recognise how both economic profit and FCF yield the same answer
- Describe how dividends are paid
- Explain the difference between the classical and radical view of the dividend payment decision
- Demonstrate how the Modigliani-Miller approach to dividend policy reached its conclusions and what its weaknesses are

Content

Module 1: Corporate Finance - Acquisition Analysis
Topic 1: Fundamentals of Acquisition
Topic 2: Quantifying the Value of an Acquisition – FCF Approach
Topic 3: Quantifying the Value of an Acquisition – Economic Profit Approach

Module 2: Dividend Policy
Topic 1: The Payment of Dividends
Topic 2: The Dividend Payment Decision
Topic 3: Dividend Policy
Topic 4: Modigliani-Miller on Dividends

Details

Code
TEPCF17000401
Venue
ePlatform
Language
English
Level
Intermediate
Hours
SFC:2.0, PWMA:2.0
Fees
All Member: HK$560
Non-Member: HK$780
Staff of Corporate Member: HK$560