
Exchanges connect companies with investors to raise capital through listings on nyse and nasdaq. Regulation and audits boost trust, while electronic trading and futures markets expand access and lower costs.
Investment bankers connect corporations needing capital with investors, design packaged securities, and underwrite offerings. They distribute through syndicates, market makers, brokers, and provide advisory services for mergers, acquisitions, and restructurings.
Explore the trade-offs between public and private financing, including IPOs, SEC filings, liquidity, and capital access, and examine private placements and leveraged buyouts for going private.
Calculate the price of a semiannual callable debenture using present value of annuity payments and the 1300 call price. Analyze how the call option affects pricing under a 7% yield.
Demonstrates how downgrading a bond from AAA to AA3 raises the market rate from 9% to 11%, causing the bond price to fall at a present-value, semiannual coupon framework.
Evaluate a bond refunding decision using net present value, call premium, underwriting costs, and tax impacts to compare old vs new financing in corporate finance.
Explore bond calculations in Excel, including coupon rate, current yield, and yield to maturity, using present value of coupons and the par value, with Goal Seek and rate function.
Analyze how a downgrade from AAA to AA changes a bond's price, using present value of semiannual interest and principal under a higher market rate from 9% to 11%.
Demonstrates how to price a zero-coupon bond by discounting the face value of 1000 at the market yield over 15 years, illustrating the inverse relationship between rate and price.
Explore a corporate finance margin bond purchase: buy at 1050 with 20% cash and 80% loan, sell at 8% market rate, and compute price, profit, and cash return.
This course will discuss capital markets, investment banking, & long-term debt and lease financing.
We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.
Types of security markets include money markets and capital markets. Money markets are short-term in nature, with securities that have maturities of one year or less. Capital markets are long-term markets with securities that have maturities greater than one year. Our focus will be on capital markets.
Capital markets help link up businesses that need money to expand with investors who would like to find a good investment for their money.
Investment bankers often act as a middle person between the company issuing securities and the investors, the investment bankers taking on substantial risk as they play their role in the process. Investment bankers design and package securities, make offers, and sell to the public.
Commercial banks differ from investment banks. Commercial banks usually deal with individuals and small companies. They generate revenue from interest on home mortgages and small business loans.
Investment banks take much larger risks. They deal with large companies and high-risk startups. They act as a kind of bridge between the companies and the investors.
Capital intensive industries often need debt financing to grow, the most common form being corporate bonds.
We will compare and contrast debt financing and equity financing, discussing the pros and cons from the standpoint of the corporation and from that of the investor.