Full-Time MBA Program What Sets Stern Apart Is What We Bring Together
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1 Globalization: a Cautionary Tale 1
Notes 1 Globalization: A Cautionary Tale 1 . Trade data from the World Trade Organization, “Statistics: Trade and Tariff Data,” https://www.wto.org/english/res_e/statis_e/statis_e.htm (accessed May 11, 2015). Investment data from United Nations Conference on Trade and Development “FDI Flows and Stocks,” http://unctad.org/en/Pages/DIAE/FDI%20Statistics/FDI-Statistics. aspx (accessed May 11, 2015). 2 . The World Bank http://www.worldbank.org/en/topic/poverty (accessed May 11, 2015). 3 . See the case study, W. J. Henisz and B. A. Zelner, “AES-Telasi: Power Trip or Power Play?” (The Wharton School, 2006); or Paul Devlin’s film Power Trip (2003), for more in-depth coverage of AES and its failed entry to Georgia. 4. I explain some of the specific issues that IKEA faced in Russia, along with more gen- eral issues that similar companies face in emerging markets, in a blog post. See R. Salomon, “So You Want to Do Business In a Developing Country?” September 15, 2009, http://www.robertsalomon.com/so-you-want-to-do-business-in-a-developing-country / (accessed May 11, 2015). 5 . See “Tesco Plans Foray into US Market,” BBC News , February 9, 2006, http://news.bbc. co.uk/2/hi/business/4695890.stm (accessed June 24, 2015). 6 . In June 2007 I wrote a blog post forecasting that, given its strategy, Tesco would have trouble entering the US market. See R. Salomon, “Tesco’s American Foray,” June 27, 2007, http://www.robertsalomon.com/2007/06/ (accessed May 11, 2015). In March 2008, it was clear that many of those predictions had come true; Tesco failed to make a profit in the US market and exited a short time later. -
Applied Corporate Finance Real Companies, Real Data, Real Time Aswath Damodaran
Applied Corporate Finance Real Companies, Real Data, Real Time Aswath Damodaran Thursday – Friday, 13 – 14 August 2015 9 am – 5.30 pm (Registration starts at 8 am) Early bird saves Grand Ballroom Hotel Indonesia Kempinski IDR 3,000,000! Jalan M.H. Thamrin No.1 (Enter via West Mall Grand Indonesia) (*) Participant Fee: IDR 23,000,000 (exclusive VAT) Get a Certificate signed by Aswath Damodaran Secure your seats now before they are sold out! Email your registration form before 3 August 2015 to [email protected] or fax it to +6221 29928200/29928300 (*)Early Bird offer expires on 29 June 2015 Content This 2-day applied corporate finance seminar will cover the following sessions: • discuss different interests that make up the modern corporation and their different objectives, potential conflict and problems, how to convert a risk measure into a hurdle rate, and examine the cost of debt and resulting cost of capital • cover investment analysis – consider what a project is and how to estimate project cash flows, and examine different decision rules for determining a good or acceptable investment • evaluate financing choices made by a firm – how much to borrow, types of financing, approaches to coming up with optimal debt ratio • examine how much firms pay in dividends and whether they should pay more or less • explore determinants of intrinsic value in a company and what managers can do to enhance value Objective The objective of this seminar is provide participants with tools and techniques that have been developed in theory to answer corporate finance questions, and how best to apply them in practice. -
Valuation Insights: Equity Risk Premium (ERP) for Indian Market
Valuation Insights: Equity Risk Premium (ERP) for Indian Market October 2015 Authored by – Manish Saxena, assisted by Saatvik Sharma 11 1 Contents Context 3 Approach and Methodology 6 Sources and References 13 © Grant Thornton India LLP. All rights reserved. Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, New Delhi and Pune Section 1 Context 1. Context 2. Approach and Methodology 3 1.1 Introduction The Capital Asset Pricing Model (CAPM) is the most widely used tool in estimating the expected rate of return on a particular asset keeping in mind a rational investor’s risk-return trade-off. The theory propounds that rational investors would expect a minimum return over and above the prevailing risk- free rate in the market adjusted for a systematic risk factor called beta. This excess return is called the Equity Risk Premium (ERP) and is mathematically computed as the excess return generated by the market over and above the risk free rate. Theoretically, market return is defined as the return on a portfolio of risky assets. In practice, when using the CAPM to compute the value of an equity share in a business, the market return would be the return on the most suitable stock market. 1.2 Significance of ERP The following is a brief snapshot of how ERP impacts various investment and policy decisions: • In corporate finance, to determine the costs of equity and capital for firms, optimise debt to equity ratios, and decide upon investment, buyback policies etc. • In corporate valuation, as one of the key inputs that determine the present value of future cash flows • ERP also impacts saving decisions and the amount that needs to be put aside for retirement or healthcare as well as allocation of wealth to different asset classes. -
Aswath Damodaran
FM_p.i-xviii.qxd 2/4/12 5:00 AM Page i FM_p.i-xviii.qxd 2/4/12 5:00 AM Page i Investment Valuation FM_p.i-xviii.qxd 2/4/12 5:00 AM Page ii Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is glob- ally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation, and financial instrument analysis, as well as much more. For a list of available titles, please visit our Web site at www.WileyFinance.com. FM_p.i-xviii.qxd 2/4/12 5:00 AM Page iii Investment Valuation Tools and Techniques for Determining the Value of Any Asset Third Edition ASWATH DAMODARAN www.damodaran.com WILEY John Wiley & Sons, Inc. FM_p.i-xviii.qxd 2/16/12 9:11 AM Page iv Copyright © 2012 by Aswath Damodaran. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. -
Collection of Business Videos (April 2021)
COLLECTION OF BUSINESS VIDEOS (APRIL 2021) Check out my Twitter/Instagram for my favorite video extracts and updates to this list https://twitter.com/DanielNHaddad https://www.instagram.com/DanielNHaddad/ E: [email protected] www.victoricapital.com Favorites of this update Disney CEO Robert Iger talks with Oprah Winfrey about his life and career at Disney https://youtu.be/OS4y0giPVaE All about SEMICONDUCTORS | A special episode of The Knowledge Project https://youtu.be/r6NUO_bymuA Alex Danco - Shopify: The E-commerce On-Ramp https://www.joincolossus.com/episodes/85946038/danco-shopify- the-e-commerce-on-ramp?tab=blocks Trillions of Questions, No Easy Answers: A (home) movie about how Google Search works https://youtu.be/tFq6Q_muwG0 Today’s Economy and Its Discontents, N. Gregory Mankiw https://youtu.be/bhn3ZFC0Dj0 Os Pregões que fizeram história: #4 - Câmbio flutuante https://open.spotify.com/episode/64SP5qEONw8eL7w1zyhtWD?si=to3G8tGKRLuB7NCA1whVHg Honestidade Intelectual - Marcos Lisboa https://youtu.be/eObvz0w2o3w Family Centers’ Titan Series Event with Stephen Mandel https://vimeo.com/493377247 Warren Buffett & Charlie Munger - How To Read Annual Reports https://youtu.be/BQHILdryQ_o [PT] Investindo no Brasil do Futuro: Valuations na Era da Tecnologia https://youtu.be/SPMUp1Y3iZY Ajay Agrawal - Power and Prediction https://youtu.be/n0cRKjbvjIc FINO 50 ANOS | Uma vida dedicada ao esporte https://youtu.be/7h6NGML2qYA FAVORITES BY TOPIC (also included in the Full list) Business people Entrevista Jorge Paulo Lemann - Movimento -
Fabrizio Ferri
FABRIZIO FERRI (Updated April 2021) WORK ADDRESS: Jenkins 317D - Miami Herbert Business School – University of Miami – Coral Gables FL Phone: (305) 284-5552 E-mail: [email protected] EDUCATION STERN SCHOOL OF BUSINESS, NEW YORK UNIVERSITY, NY August 2005 Ph.D. in Business Administration, Accounting Dissertation: Structure of Option Repricings: Determinants and Consequences Advisor: Professor Joshua Ronen STERN SCHOOL OF BUSINESS, NEW YORK UNIVERSITY, NY May 1998 Master of Business Administration Double Major: Finance and Accounting - GPA 3.81/4.00 (with Distinction) UNIVERSITY OF ROME “LA SAPIENZA” – Rome, Italy October 1995 Degree in Economics – Final Grade: 110/110 cum laude WORK EXPERIENCE MIAMI BUSINESS SCHOOL, Miami 2018-to date Professor June 2021 – to date Associate Professor 2018-2021 Co-Director of Governance & Principled Leadership Research Cluster (2019 - to date) Director of PhD Programs (Jan. 2020 - to date) Member of the Ranking Committee (2018 - to date) Member of the AACSB Accreditation Task force (2021) Member of the MBA Redesign Task force (2019) COLUMBIA BUSINESS SCHOOL, New York NY 2011-2018 Regina Pitaro Associate Professor 2015-2018 Associate Professor 2013-2015 Ph.D. Coordinator Accoujnting Department 2013- 2017 Assistant Professor 2011-2013 STERN SCHOOL OF BUSINESS, New York NY 2009-2011 Visiting Assistant Professor HARVARD BUSINESS SCHOOL, Boston, MA 2004-2009 Assistant Professor STERN STEWART & CO. – Associate, NYC, NY 1998-1999 Devised Economic Value Added (EVA) measure for oil & gas firms. Designed EVA incentive plan for a leading firm in the office furniture industry. Held numerous EVA Training Seminars at clients’ sites in US and Europe. COOPERS & LYBRAND - Associate International Tax Department, NYC, NY Summer 1997 Transfer Pricing Analyses FABRIZIO FERRI TAX CONSULTING FIRM FERRI C. -
Everything Is a DCF Model a Mantra for Valuing Cash-Generating Assets
Counterpoint Global Insights Everything Is a DCF Model A Mantra for Valuing Cash-Generating Assets CONSILIENT OBSERVER | August 3, 2021 Introduction AUTHORS Matt Levine is a very talented journalist who writes the Money Stuff Michael J. Mauboussin [email protected] opinion column for Bloomberg. A trained lawyer and former banker, Levine is smart, entertaining, and informative.1 He also likes to use Dan Callahan, CFA a handful of themes to create context for his observations about [email protected] business, law, and the markets. One of his favorites is “everything is securities fraud.”2 The basic idea is that whenever something bad happens to a company causing its stock to decline, someone will accuse the management of acting nefariously. In the same vein, we want to suggest the mantra “everything is a DCF model.” The point is that whenever investors value a stake in a cash-generating asset, they should recognize that they are using a discounted cash flow (DCF) model. This is important because an investor, from a venture capitalist to a manager with a portfolio of large-capitalization stocks, owns partial stakes in businesses. The value of those businesses is the present value of the cash they can distribute to their owners. This suggests a mindset that is very different from that of a speculator, who buys a stock in anticipation that it will go up without reference to its value. Investors and speculators have always coexisted in markets, and the behavior of many market participants is a blend of the two. But it is useful to keep in mind that these are separate activities. -
Opening the Door Leonard Stern’S New York City Scholarship Helps Fulfill NYU Founder Albert Gallatin’S Vision
SternBzSpring Final Spreads_UG_Layout 6 5/1/15 12:58 PM Page 3 SPRING 2015 RG. Office of Public Affairs d 44 West Fourth Street, Suite 10-160 the Alumni Magazine of NYU Stern New York, NY 10012 sity STERNbusiness Opening the Door Leonard Stern’s New York City Scholarship helps fulfill NYU founder Albert Gallatin’s Vision Pankaj Ghemawat leads Stern’s new global research center ■ JetBlue’s Robin Hayes on the airline industry ■ Wall Street stars come to campus ■ John Fayerweather expanded Stern’s boundaries SternBzSpring Final Spreads_UG_Layout 6 5/1/15 12:58 PM Page 4 a letter fro m the dean NYU recently earned an impor- both virtual and in-person engagement. Andre, the second tant distinction, attaining first place among three Koo generations to attend Stern, sat down with us among leading US colleges and uni- to share his thoughts (page 6). versities ranked by the Institute of Of course students benefit in profound ways from their inter- International Education (IIE) for both the number of interna- actions with our faculty, who continue to distinguish themselves tional students hosted and the number of American students sent with notable research. In this issue, we sample three recent pa- to study abroad. The Stern School shares proudly in this success. pers that highlight the human side of organizations. Lisa Leslie, At Stern we know we are at the forefront of global education, Gavin Kilduff, and Becky Schaumberg each focus on various as- boasting our own offshore programs and unparalleled leadership pects of human behavior and its impact on how groups handle when it comes to research on globalization. -
The Hunt for the Relationship Between Core Competencies and Financial Market Returns: the Case of the US Apparel Sector
The Hunt for the Relationship between Core Competencies and Financial Market Returns: The Case of the US Apparel Sector Michael B Cohen Graduate College of Management, SCU University, Tweed Heads, Australia Email: [email protected] Preferred Stream: 6. Knowledge Management and Intellectual Capital Profile: PhD candidate at SCU. Previously lectured finance at the University of Cape Town and the University of the Witwatersrand, worked as an Executive Consultant at Ernst & Young (London) and managed a family owned business. 1 The Hunt for the Relationship between Core Competencies and Financial Market Returns: The Case of the US Apparel Sector ABSTRACT Core competencies are cohesive groups of intangible assets that give firms durable competitive advantages. This paper investigates if it is feasible to identify core competencies at the industry (rather than firm) level, and if it is further possible to relate the existence of core competencies to the market valuation of the equities of firms. The apparel industry in the United States is used as a test case. Keywords: Intangible asset measurement, Resource-based view of the firm. The prices of equities reflect the ability of a firm to produce a future stream of earnings. That stream of earnings is partly a function of the assets that the firm can draw upon in carrying out its activities. Assets may take many forms, some of which might be tangible, but in the modern economy more and more corporate assets are intangible in nature. Nakamura, writing about the US economy in 2001, states that: The rate of investment in intangibles, and its economic value, accelerated significantly beginning around 1980. -
The Duty to Think Strategically
Marquette University Law School Marquette Law Scholarly Commons Faculty Publications Faculty Scholarship 1-1-2013 The Duty to Think trS ategically Nadelle Grossman Marquette University Law School, [email protected] Follow this and additional works at: http://scholarship.law.marquette.edu/facpub Part of the Law Commons Publication Information Nadelle Grossman, The Duty to Think trS ategically, 73 La. L. Rev. 449 (2013) Repository Citation Grossman, Nadelle, "The Duty to Think trS ategically" (2013). Faculty Publications. Paper 635. http://scholarship.law.marquette.edu/facpub/635 This Article is brought to you for free and open access by the Faculty Scholarship at Marquette Law Scholarly Commons. It has been accepted for inclusion in Faculty Publications by an authorized administrator of Marquette Law Scholarly Commons. For more information, please contact [email protected]. The Duty to Think Strategically Nadelle Grossman∗ ABSTRACT Under Delaware corporate law, directors and officers have a duty to oversee their firm’s management of risk to limit losses. Corporate law does not, however, require directors or officers to oversee their firm’s management of strategy to create gains. Yet, managing both risk and strategy is essential to a firm in creating value. In fact, as I argue in the Article, the current focus by courts and commentators only on risk management to prevent losses could actually undermine a firm’s management of its strategy for gains. I therefore propose a model for how Delaware corporate law can drive firms to manage their strategies for gains, in addition to their risk of loss, all to create value. -
Baker Library Core Collection 2/15/07
Baker Library Core Collection 2/15/07 1 Baker Library Core Collection - 2/15/07 TITLE AUTHOR DISPLAY CALL_NO Advanced modelling in finance using Excel and VBA / Mary Jackson and Mike Staunton. Jackson, Mary, 1936- HG173 .J24 2001 "You can't enlarge the pie" : six barriers to effective government / Max H. Bazerman, Jonathan Baron, Katherine Shonk. Bazerman, Max H. JK468.P64 B39 2001 100 billion allowance : accessing the global teen market / Elissa Moses. Moses, Elissa. HF5415.32 .M673 2000 20/20 foresight : crafting strategy in an uncertain world / Hugh Courtney. Courtney, Hugh, 1963- HD30.28 .C6965 2001 21 irrefutable laws of leadership : follow them and people will follow you / John C. Maxwell. Maxwell, John C., 1947- HD57.7 .M3937 1998 22 immutable laws of branding : how to build a product or service into a world-class brand / Al Ries and Laura Ries. Ries, Al. HD69.B7 R537 1998 25 investment classics : insights from the greatest investment books of all time / Leo Gough. Gough, Leo. HG4521 .G663 1998 29 leadership secrets from Jack Welch / by Robert Slater. Slater, Robert, 1943- HD57.7 .S568 2003 3-D negotiation : powerful tools to change the game in your most important deals / David A. Lax and James K. Sebenius. Lax, David A. HD58.6 .L388 2006 360 degree brand in Asia : creating more effective marketing communications / by Mark Blair, Richard Armstrong, Mike Murphy. Blair, Mark. HF5415.123 .B555 2003 45 effective ways for hiring smart! : how to predict winners and losers in the incredibly expensive people-reading game / by Pierre Mornell ; designed by Kit Hinrichs ; illustrations by Regan Dunnick. -
ARE BALANCE SHEETS WRONG? a Roundtable Discussion of Goodwill and Intangible Assets Edited by Bob Schmidt, Manager, Brandes Institute
ORIGINAL RESEARCH FOR INQUISITIVE INVESTORS ARE BALANCE SHEETS WRONG? A Roundtable Discussion of Goodwill and Intangible Assets Edited by Bob Schmidt, Manager, Brandes Institute BRANDES.COM/INSTITUTE | [email protected] A ROUNDTABLE DISCUSSION OF GOODWILL AND INTANGIBLE ASSETS Executive Summary The rising level of goodwill and intangible assets for U.S. companies has been a topic of discussion and debate for various members of the Brandes Institute Advisory Board (BIAB) for more than two years. But what does this phenomenon mean for companies and how they are valued—especially when using book values? In this roundtable discussion, select Board members were joined by investment professionals at New York-based Donald Smith & Co. The following reflects conversations that were shared over three different sessions, as well as email exchanges and third-party research and opinions. Ultimately, we hope this roundtable accomplishes the following goals: y raises awareness of this phenomenon and potential risks y encourages investment professionals to conduct their own investigations y underscores the benefits of fundamental analysis on a company-specific basis Accounting lies at the heart of a discussion of goodwill. Escalating merger and acquisition (M&A) activity over the past several years has boosted goodwill levels. But what does that mean? Some investors tend to downplay or dismiss goodwill levels and focus on a company’s overall operations. Other investors may view goodwill with suspicion. The Financial Accounting Standards Board (FASB) has changed the rules for how companies can account for goodwill. In 2014, FASB noted companies must “test” goodwill at least annually for potential impairments. (Goodwill is recorded on the balance sheet, but an impairment would show up on the income statement, making impairments more visible.