Applied Corporate Finance Assignment -
Learning Outcome -
- Describe the methods and models that have been used to evaluate a number of investment decisions.
- Gather data and evaluate the data inputs in these models.
- Analyse different methods of raising capital and assess the cost and benefits associated with each method.
- Evaluate the impact of different financing decisions on the firm's value.
- Understand various methods to alter the structure of the companies.
The purpose of the assignment is to engage the students in an analysis of the nature of operations, financial positions, strategic planning and expansion opportunities of publically listed companies. The assignment requires students to apply the theory, concepts and techniques covered in Applied Corporate Finance (MAF703) in a practical situation.
Decided the company it would be Axis bank taking over Paytm both are Indian companies. Axis bank is listed on stock exchange.
Task - If the company pays all or part of the acquisition by cash, how should the company finance the takeover?
a) Should the company raise the capital using internal funds, debt, equity, hybrid securities or a combination of the above? Give reasons.
b) If the capital required is raised via a share issue, should the company engage in a right issue or private placement?
c) How does the share issue affect the wealth of the existing shareholders in each of the scenarios specified in part b)?
Attachment:- Assignment File.rar