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Trade Credit
Schill, Michael J.Technical Note DARDEN-F-1941-EFinanceWhen businesses deliver a product or service, they often forgo receiving immediate cash payment and allow their customers to pay later. Such payment terms are called trade credit. While trade credit fosters sales to existing and new customers, such credit is not free. The cost of trade credit to sellers is twofold: it creates repayment uncertainty and it increases the seller’s financing cost. By extending trade credit, sellers effectively take on...Starting at €8.20
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The Profitability Index
Schill, Michael J.Technical Note DARDEN-F-1945-EFinanceThe well-known net present value (NPV) rule advocates accepting all investment projects that have a positive NPV. The NPV rule makes economic sense since positive-NPV projects are expected to create economic value. But what should a manager do if the totaStarting at €8.20
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Discounted Cash Flow Analysis
Schill, Michael J.Technical Note DARDEN-F-1728-EFinanceThis technical note outlines the principles and application of proper discounted cash flow (DCF) analysis in the context of evaluating business investment projects. The note provides several specific examples, emphasizes building intuition for DCF modeling, and reviews several common errors novices to the subject make in such analysis.Starting at €8.20
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Financial Management: An Introduction
Schill, Michael J.Technical Note DARDEN-F-1742-EFinanceThis technical note provides an overview of Financial Management. It is intended as a note to accompany the opening session of case-based course in corporate finance or financial management, as a way of orienting students as to what they should expect and not expect from such a course.Starting at €8.20
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Understanding Risk: Systemic versus Idiosyncratic
Schill, Michael J.Technical Note DARDEN-F-1973-EFinanceUsing the fictional situation of two brothers facing the challenge of managing a commodity business in central Africa, this note explores different metrics for risk and related considerations for investors. The note considers measures of volatility, including the difference between systematic risk and idiosyncratic risk, and how diversification reduces idiosyncratic risk. The note uses these concepts to motivate the foundations of portfolio risk ...Starting at €8.20
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Management of Financial Policy Decisions: Capital Structure Policy
Schill, Michael J.Technical Note DARDEN-F-1743-EFinanceThis technical note provides an overview of capital structure policy. Through a series of hypothetical situations and real-world examples, students will gain an understanding of the benefits and costs of debt and equity financing. This note explores the value and cost of capital implications of capital structure policy with the intent to explain why businesses such as Hilton Worldwide and Computer Sciences differ so dramatically in their capital ...Starting at €8.20
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Business Performance Evaluation: Approaches for Thoughtful Forecasting
Schill, Michael J.Technical Note DARDEN-F-1490-EFinanceThis note provides an introduction to financial ratios and financial forecasting. It examines principles in the art and science of thoughtful financial forecasting. In particular, it reviews the importance of understanding financial ratios.Starting at €8.20
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Business Valuation in Mergers and Acquisitions
Schill, Michael J.; Loutskina, ElenaTechnical Note DARDEN-F-1699-EFinanceThis note discusses valuation in the context of business mergers and acquisitions. It builds on standard methods of business valuation to consider the unique questions arising in a merger or acquisition setting. The note focuses on valuation using the discounted cash flow (DCF) approach and the comparable-firm-multiples approach and presupposes an understanding of the principles of business valuation. The note provides and reviews the details of ...Starting at €8.20
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Financial Theory Foundations
Schill, Michael J.Technical Note DARDEN-F-1548-EFinanceFinancial theory seeks to explain how buyers and sellers in financial markets price contracts to exchange money across time and across risk profiles. Using rules of agent behavior, theory generates financial models that attempt to predict the fair prices of the securities in financial markets. To make the models simple enough to be used in practice, theorists make simplifying assumptions about the characteristics of markets and market participant...Starting at €8.20
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An Introduction to Technical Analysis
Schill, Michael J.; Wada, YosukeTechnical Note DARDEN-F-1547-EFinanceTechnical stock analysis uses past prices and trading volume or both to predict future prices. A broad range of techniques such as chart analysis, moving averages, and other filters and oscillators can be used to identify predictable patterns in stock prices. The conventional wisdom is that stock-price patterns emerge from systematic psychological behavior of market participants. This note provides an overview of some common analytical tools for ...Starting at €8.20