Understanding Finance
Understanding Finance
  • 48
  • 553 936
Mergers and Acquisitions Public and Private Company Valuation, James Tompkins
This is an advanced topic and assumes an understanding of all lectures in the “Corporate Finance Lecture Series” playlist on this channel. I begin by setting some themes. For example, do financial principles (e.g. risk and return) apply equally to both public and private companies? Is there is a logical minimum and maximum price when a target is bought by an acquirer? What are the impacts on these prices when the target is not liquid and/or there is a change in control between the target and acquirer? Next I tackle the big picture concepts of valuing the target considering valuation issues in both a public and private company setting. Is public company information relevant and useful to private company valuation? What are some other approaches to valuation beyond discounted cash flow? I explore these and other issues using “real life” data when Media General announced its acquisition of Meredith in September 2015.
มุมมอง: 13 161

วีดีโอ

Relevant Cash Flows for an Asset Investment, James Tompkins
มุมมอง 4.2K9 ปีที่แล้ว
Net present value, internal rate of return and other analyses pertinent to the asset investment decision (capital budgeting) are applied to a timeline of cash flows. But how do you calculate these cash flows? This is what I explore in this video.
When is the Best Time for a Company to Make an Asset Investment? James Tompkins
มุมมอง 7589 ปีที่แล้ว
Companies do not just make decisions about whether or not to build a new factory or develop a new phone (asset investment / capital budgeting decision), but also when is the best time to make such a decision. In this "Understanding Finance Nugget" I show an approach that considers the optimal time for an asset investment decision.
Understanding Profitability Index, James Tompkins
มุมมอง 1.9K9 ปีที่แล้ว
This "Understanding Finance Nugget" not only shows you how to calculate the Profitability Index, but also provides an in-depth understanding of what it means and how to apply it when a company is deciding on a major asset investment or capital budgeting decision (e.g. Apple investing in a new iPhone.) In addition I discuss circumstances in which its application may be useful above and beyond a ...
Understanding Internal Rate of Return, James Tompkins
มุมมอง 1.9K9 ปีที่แล้ว
This "Understanding Finance Nugget" not only shows you how to calculate the Internal Rate of Return, but also provides an in-depth understanding of what it means and how apply it when a company is deciding on a major asset investment decision (e.g. Apple investing in a new iPhone.) In addition I discuss circumstances in which its application may be useful above and beyond a net present value an...
Understanding Payback Period, James Tompkins
มุมมอง 6339 ปีที่แล้ว
This "Understanding Finance Nugget" not only shows you how to calculate the Payback Period, but also provides an in-depth understanding of how there is judgment involved in interpreting what the answer means. In addition I discuss strengths and weaknesses of using the payback period as well as circumstances in which its application may be useful above and beyond a net present value analysis.
Understanding Net Present Value, James Tompkins
มุมมอง 1.5K9 ปีที่แล้ว
This "Understanding Finance Nugget" not only shows you how to calculate Net Present Value, but also provides an in-depth understanding of what the answer means. In addition I discuss strengths and weaknesses of a net present value analysis.
What is the Asset Investment Decision (Capital Budgeting)? James Tompkins
มุมมอง 1.3K9 ปีที่แล้ว
This is an “Understanding Finance Nugget” in which I argue that what a company spends its money on, for example Apple spending money to develop the iPhone is arguably the most important decision a firm makes. I refer to this decision as the “Asset Investment” decision and it is also known as Capital Budgeting. For a deeper understanding of not only what it is, I also get into the importance of ...
Another Challenging Time Value of Money Problem, James Tompkins
มุมมอง 1.4K10 ปีที่แล้ว
This is an "Understanding Finance Nugget" in which I do another challenging time value of money problem. This is not quite as hard as the previous nugget (Challenging Time Value of Money Problem), but nevertheless a challenge. If this does not make complete sense I recommend in order that you watch my two lectures: "Time Value of Money: Single Cash Flows, James Tompkins" and "Time Value of Mone...
Challenging Time Value of Money Problem, James Tompkins
มุมมอง 2.5K10 ปีที่แล้ว
This is an "Understanding Finance Nugget" in which I do a challenging time value of money problem. In fact, if you can do this problem, in my opinion you have an in-depth understanding (not memorization) of this topic. If this does not make complete sense I recommend in order that you watch my two lectures: "Time Value of Money: Single Cash Flows, James Tompkins" and "Time Value of Money: Multi...
Deriving the Present Value of a Growth Perpetuity Formula, James Tompkins
มุมมอง 9K10 ปีที่แล้ว
This is an "Understanding Finance Nugget." Whereas a perpetuity is a set of equal cash flows between equal time periods that go on forever, in a growth perpetuity, the cash flows are not equal but grow at a constant rate. For a given effective periodic rate, it is possible to calculate one single value that is mathematically equivalent to the infinite number of growing cash flows.
Annuity Problems, James Tompkins
มุมมอง 1.2K10 ปีที่แล้ว
This is an "Understanding Finance Nugget" in which apply the present value of an annuity formula.
Deriving the Present Value of an Annuity Formula, James Tompkins
มุมมอง 2.3K10 ปีที่แล้ว
In this "Understanding Finance Nugget" I use the present value of a perpetuity as a starting point to derive the present value of an annuity.
Perpetuity Problems, James Tompkins
มุมมอง 2K10 ปีที่แล้ว
This is an "Understanding Finance Nugget" in which apply the present value of a perpetuity formula.
Deriving the Present Value of a Perpetuity Formula, James Tompkins
มุมมอง 10K10 ปีที่แล้ว
This is an "Understanding Finance Nugget." A perpetuity is a set of equal cash flows between equal time periods that go on forever. For a given effective periodic rate, it is possible to calculate one single value that is mathematically equivalent to the infinite number of cash flows.
What is an Annuity and Perpetuity? James Tompkins
มุมมอง 13K10 ปีที่แล้ว
What is an Annuity and Perpetuity? James Tompkins
Deriving the Only Single Cash Flow Formula that Exists, James Tompkins
มุมมอง 1.1K10 ปีที่แล้ว
Deriving the Only Single Cash Flow Formula that Exists, James Tompkins
Two Rates Commonly Used in Time Value of Money Equations, James Tompkins
มุมมอง 1.2K10 ปีที่แล้ว
Two Rates Commonly Used in Time Value of Money Equations, James Tompkins
Allow Me to Introduce Myself, James Tompkins
มุมมอง 1K10 ปีที่แล้ว
Allow Me to Introduce Myself, James Tompkins
What is the Purpose of any Time Value of Money Formula?, James Tompkins
มุมมอง 1.3K10 ปีที่แล้ว
What is the Purpose of any Time Value of Money Formula?, James Tompkins
What is an "Understanding Finance Nugget"?, James Tompkins
มุมมอง 2.8K10 ปีที่แล้ว
What is an "Understanding Finance Nugget"?, James Tompkins
Time Value of Money: Multiple Cash Flows, James Tompkins
มุมมอง 21K10 ปีที่แล้ว
Time Value of Money: Multiple Cash Flows, James Tompkins
Time Value of Money: Single Cash Flows, James Tompkins
มุมมอง 21K10 ปีที่แล้ว
Time Value of Money: Single Cash Flows, James Tompkins
The Dividend Decision, James Tompkins
มุมมอง 5K10 ปีที่แล้ว
The Dividend Decision, James Tompkins
The Capital Structure Decision and Other Issues, James Tompkins
มุมมอง 10K10 ปีที่แล้ว
The Capital Structure Decision and Other Issues, James Tompkins
The Capital Structure Decision and Taxes, James Tompkins
มุมมอง 11K10 ปีที่แล้ว
The Capital Structure Decision and Taxes, James Tompkins
The Capital Structure Decision and Perfect Markets, James Tompkins
มุมมอง 11K10 ปีที่แล้ว
The Capital Structure Decision and Perfect Markets, James Tompkins
Sustainable Growth Rate, James Tompkins
มุมมอง 14K10 ปีที่แล้ว
Sustainable Growth Rate, James Tompkins
Introduction to Advanced Corporate Finance, James Tompkins
มุมมอง 14K10 ปีที่แล้ว
Introduction to Advanced Corporate Finance, James Tompkins
Political Risk, James Tompkins
มุมมอง 7K10 ปีที่แล้ว
Political Risk, James Tompkins

ความคิดเห็น

  • @mohsinnaqvi90
    @mohsinnaqvi90 11 วันที่ผ่านมา

    One cannot but appreciate the way this guy lays the goundwork so effectively to achieve final results. I am all in awe for this incredible explanation, so much so that I feel indebted to leave some words of appreciation. Please continue to inspire us with your outstanding work.

  • @WillJohn-nq6ez
    @WillJohn-nq6ez 2 หลายเดือนก่อน

    An excellent and straighforward lecture. Thanks a lot.

  • @sammuthu1
    @sammuthu1 2 หลายเดือนก่อน

    Thanks for the great video! I am not clear about benefit of debt. If you take a loan, yes you pay less taxes, but you have to also pay interest. In your example around 8:00, with the loan, Net Income is $60. Without the loan, it would have been $120. So, is't debt costing more in that case?

  • @naqvimuhammad
    @naqvimuhammad 3 หลายเดือนก่อน

    Incredible explanation, better than every Finance professor or book I've ever encountered. Thank you.

  • @way2worldoffinance436
    @way2worldoffinance436 5 หลายเดือนก่อน

    Amazing explanation

  • @tikkitempbo
    @tikkitempbo 6 หลายเดือนก่อน

    Hallelujah I found you! I am a fan now

  • @tikkitempbo
    @tikkitempbo 6 หลายเดือนก่อน

    This is so great. Thank you!

  • @jafferkhan1452
    @jafferkhan1452 8 หลายเดือนก่อน

    Book and author name please

  • @jafferkhan1452
    @jafferkhan1452 8 หลายเดือนก่อน

    Book name and author please

  • @jafferkhan1452
    @jafferkhan1452 8 หลายเดือนก่อน

    Nice lecture. Book name and author used for these lectures please...

  • @testar2731
    @testar2731 9 หลายเดือนก่อน

    Really nice to find this channel, thank you

  • @OfficialDotaPlayer
    @OfficialDotaPlayer 9 หลายเดือนก่อน

    Beautiful

  • @muhammadsalah4938
    @muhammadsalah4938 ปีที่แล้ว

    Great lectures really. Thank you!

  • @Lee3374u
    @Lee3374u ปีที่แล้ว

    Mr. Tompkins, I went through the CMAP program at Kennesaw, and thoroughly enjoyed it. I have done a few DCFs since then on smaller deals ($1M to $3M EBITDA) and they come out extremely high. I have done quite a bit of research on risk premiums for company specific and for smaller businesses, but most of them give discount premium estimates for a small business as defined by the measure of a public company (still hundreds of millions of dollars in market share, and in those cases 3% to 5% size risk premiums). Do you have any guidance or resources you can share that assist with calculating risk premiums for the discount rate for very small companies? I have read several articles that indicate it isn't uncommon for a discount rate in the range of 25% to 30%+ for very small businesses. I just would like a more defined process for calculating that risk premium if one exists.

  • @abdulrazaqesmat2330
    @abdulrazaqesmat2330 ปีที่แล้ว

    I would like to thank you for the sharing these effective and informative lectures, Best of luck. How we can get materials of these beautiful lectures for more information.

  • @alainmirage
    @alainmirage ปีที่แล้ว

    I salute you sir! You've saved my semester

  • @manojn6645
    @manojn6645 ปีที่แล้ว

    Brilliant presentation! Professor, can you please make a video on the history of international monetary policy?

  • @Lvv-qp5jl
    @Lvv-qp5jl ปีที่แล้ว

    Can you help me understand what debt beta is exactly? if my understanding is correct, debt beta reflects that correlation between the changes in returns to debt holders of the specific company and changes in the average market debt returns to debt holders. In this case, if debt beta is 0, it just means there is no correlation, not that there is no change in risks of debt repayment. is this right? Thank you!

  • @Lvv-qp5jl
    @Lvv-qp5jl ปีที่แล้ว

    Can you explain why, in theory, enterprise value is supposed to be independent of capital structures while in its calculation (discounting Unlevered FCF by WACC), WACC, being a weighted function of debt and equity, is clearly making EV also a function of the mix of debt and equity? Also, we use levered WACC or levered beta for WACC calculation in this case right? Thank you so much!

  • @Mohammad-bg1xc
    @Mohammad-bg1xc ปีที่แล้ว

    But how can we know what's 110 dollars going to be worth in 1 year

  • @ramerousm4019
    @ramerousm4019 ปีที่แล้ว

    The best explanation on SGR I have seen. Great video!

  • @josephmbimbi
    @josephmbimbi ปีที่แล้ว

    A lot of ideology hidden behind biased questions imho, I find that a bit annoying, but I guess it is inevitable to not be biased when talking about economics. But hey I am talking from a non neutral position myself, and I am not an economics expert, so make what you want if it

  • @josephmbimbi
    @josephmbimbi ปีที่แล้ว

    about the example at 30:26 , no european country can print euros, and the BCE won't print euros for governments either, so the euro would be a reserve for the german or the french governement / treasury. Or am i missing something ? Other than that, thank you for this great and clear video

  • @richardgordon
    @richardgordon ปีที่แล้ว

    That was a superb discussion on the capital structure and sustainable growth rate! Very interesting!

  • @Andiaaidil
    @Andiaaidil ปีที่แล้ว

    Info artinya guys

  • @Goku-wr5te
    @Goku-wr5te ปีที่แล้ว

    Sir, it would be grateful if you could share the PDFs. Thanks.

  • @asdfghjkl12904
    @asdfghjkl12904 ปีที่แล้ว

    Amazing explanation! thank you!

  • @ricpue
    @ricpue ปีที่แล้ว

    Great lesson! thanks

  • @Goku-wr5te
    @Goku-wr5te 2 ปีที่แล้ว

    Hey Mr.James,thank you for your lectures.

  • @heatherjordan9869
    @heatherjordan9869 2 ปีที่แล้ว

    Please stop asking me questions that I do not know the answer to. I feel like I would learn more if you would just teach and come out with the information and not wait for me to "answer" these questions

  • @juseoklee8700
    @juseoklee8700 2 ปีที่แล้ว

    Thanks for your lecture! Rly clear and easy to understand the concept

  • @nikrvrytr1694
    @nikrvrytr1694 2 ปีที่แล้ว

    thank you for the wonderful video! 😎😎😎

  • @bakhtiyorakramjonov7606
    @bakhtiyorakramjonov7606 2 ปีที่แล้ว

    Thank you sir ! it's been really great learning experience

  • @aprilapril5951
    @aprilapril5951 2 ปีที่แล้ว

    Great video, thanks!!

  • @bulldogsforeva
    @bulldogsforeva 2 ปีที่แล้ว

    Here's 5 dollars give me my broccoli

  • @levisdasikond1843
    @levisdasikond1843 2 ปีที่แล้ว

    Thank you so much Sir. That was a good learning experience and very interactive because of your method on delivering your lecture. Hope to hear more from you.

  • @MrGLites
    @MrGLites 2 ปีที่แล้ว

    Excellent job.

  • @uthiripakkangal7015
    @uthiripakkangal7015 2 ปีที่แล้ว

    Hi what do you mean by cash flow amount invested equally in equal intervals or the interest received for initial investments at the end of each time interval

  • @pratikshashendre2740
    @pratikshashendre2740 2 ปีที่แล้ว

    Can you please provide question bank and answers for some difficult TVM problems. It would be really helpful.

  • @apurwasharma3582
    @apurwasharma3582 2 ปีที่แล้ว

    These videos are great

  • @MohammedIslamElshiekhElsmani
    @MohammedIslamElshiekhElsmani 2 ปีที่แล้ว

    Interesting!!

  • @hempigha
    @hempigha 2 ปีที่แล้ว

    Excellently done!

  • @roynotintown
    @roynotintown 2 ปีที่แล้ว

    Hi Sir. How are you??

  • @macumbie
    @macumbie 2 ปีที่แล้ว

    Right?

  • @Madeline1999
    @Madeline1999 2 ปีที่แล้ว

    I had to drop finance in the beginning of my undergrad. Through your videos I currently am sitting at an A+ in the class I have been most scared of my whole degree! Thank you for such an incredible explanation of these concepts and giving me an interest to learn more!

  • @danzz7583
    @danzz7583 2 ปีที่แล้ว

    taking a corporate finance class this semester. This adds a lot of new insight to that class. Thanks :)

  • @gregorygomaere4983
    @gregorygomaere4983 2 ปีที่แล้ว

    Thank you Professor Tompkins, you the best

  • @richardparchment275
    @richardparchment275 2 ปีที่แล้ว

    Thank you for this. Working on a project and needed a quick understanding of the differences between both.

  • @inshank
    @inshank 2 ปีที่แล้ว

    That was so amazing..!! struggling with this concept for many days..!! Thank You..!!

  • @nitinmadagi8200
    @nitinmadagi8200 2 ปีที่แล้ว

    Great explanation loved it!!!! Keep up the good work👏👏👏👏👏