This website uses technical, customisation and analytical cookies, both first-party and third-party, to anonymously facilitate browsing and analyse statistics on use of the website. Learn more
Search results
-
Project Evaluation in Emerging Markets: Exxon Mobil, Oil, and Argentina
Estrada, Javier; Giannattasio, Gabriela; Nikolova L.Case F-803-EFinanceEarly in 2006 a brief report arrived at Exxon Mobil's headquarters in Irving, Texas, with the results of geological tests in the south of Argentina. The tests determined that the area explored seemed to be rich in oil and that, subject to a proper cost-benefit analysis, it could be worth investing in the necessary production facilities to extract oil from the ground. You have been asked to evaluate this investment opportunity and report to manage...Starting at €8.20
-
Project Evaluation in Emerging Markets: Exxon Mobil, Oil, and Argentina - Teaching Note
Estrada, JavierTeaching Note FT-70-EFinanceEarly in 2006 a brief report arrived at Exxon Mobil's headquarters in Irving, Texas, with the results of geological tests in the south of Argentina. The tests determined that the area explored seemed to be rich in oil and that, subject to a proper cost-benefit analysis, it could be worth investing in the necessary production facilities to extract oil from the ground. You have been asked to evaluate this investment opportunity and report to manage...Starting at €0.00
-
The Arithmetic of Active Management: An Example
Estrada, JavierTechnical Note FN-643-EFinanceMany people find it hard to believe that smart, well-paid, motivated, hard-working active fund managers fail to achieve, far more often than not, their goal of outperforming their benchmarks, particularly over long periods. However, the evidence on this is both substantial and unquestionable. This note provides an example of what is often called the arithmetic of active management; that is, the theoretical result that states that active managemen...Starting at €8.20
-
The CAPM, the Cost of Capital, and Project Evaluation
Estrada, JavierTechnical Note FN-567-EFinanceThis note provides a very brief introduction to the CAPM, the cost of capital, and the two main tools used in project evaluation, NPV and IRR. It is intended only as a primer on some basic aspects of these topics, and to be followed by class discussions or cases.Starting at €8.20
-
The Essential Financial Toolkit: Tool 9 - Multiples
Estrada, JavierTechnical Note FN-563-EFinanceThis note discusses stock valuation using relative valuation ratios, typically referred to as multiples. These multiples are widely used by equity analysts and widely discussed in the financial press. Their popularity is largely due to their simplicity but, as discussed in this case, this simplicity may be deceiving, may lead to faulty analyses, and ultimately to wrong investment decisions.Starting at €8.20
-
The Essential Financial Toolkit: Tool 8 - NPV and IRR
Estrada, JavierTechnical Note FN-562-EFinanceThis note discusses the two most widely-used tools for project evaluation, NPV and IRR. Both tools require a critical input, the cost of capital, one of the most essential magnitudes for any company, which is also briefly discussed. Both NPV and IRR have applications that go way beyond project evaluation and no toolbox would be complete without them.Starting at €8.20
-
Dividend Policy - Four Decisions - Teaching Note
Estrada, JavierTeaching Note FT-131-EFinanceAn important decision that companies must make periodically is whether to distribute part of their earnings to their shareholders as dividends, and if so, how large this proportion should be. Unfortunately, financial theory does not provide very clear guidance on this topic. The four decisions discussed below shine a light on some of the important variables that managers need to consider when making this critical decision.Starting at €0.00
-
Dividend Policy - Four Decisions
Estrada, JavierCase F-989-EFinanceAn important decision that companies must make periodically is whether to distribute part of their earnings to their shareholders as dividends, and if so, how large this proportion should be. Unfortunately, financial theory does not provide very clear guidance on this topic. The four decisions discussed below shine a light on some of the important variables that managers need to consider when making this critical decision.Starting at €8.20
-
The Essential Financial Toolkit: Tool 5 - Required Returns and the CAPM
Estrada, JavierTechnical Note FN-559-EFinanceThis note discusses the relationship between risk and return. It is obvious that investors would want a higher exposure to risk to be compensated with a higher return, but in order to estimate the actual return investors should require at different levels of risk, we need a model. The CAPM, one of the models most widely used in finance, provides a simple and intuitive way to tackle this issue.Starting at €8.20
-
The Essential Financial Toolkit: Tool 7 - Risk-Adjusted Returns
Estrada, JavierTechnical Note FN-561-EFinanceThis note discusses how to properly evaluate the performance of assets by taking into account not just their returns, as most commercial rankings do, but also their risk. And because risk can be defined in more than one way, there is more than one measure of risk-adjusted returns. We will discuss five of them, some differing in the way they define risk and others in the way they incorporate it into a risk-adjusted measure.Starting at €8.20