I still didn't get the difference between maximising stock price and maximising stock holder wealth. Isn't a stock holder wealth directly correlated with the share price or is it about paying dividends
If u have assets that are worth 30$, which are funded by 20$ of equity and 10$ of debt. In that case your firm value is 30$ (wealth that we can attribute both to shareholders and lenders), And shareholder wealth is 20$ (wealth only to shareholders).
Could someone please elaborate what is the difference between protected bondholders and not (or not fully) protected bond holders? Does it mean that the loaned money is considered as debt, but not equity (hybrid loan) = protected? 1:09:45
Protected bondholders have bond covenants protecting their investments, e.g. the company can't pay dividends to shareholders if its cash would drop below a certain amount, or if its interest coverage ratio (e.g. EBIT/interest, but there are a lot of modification how to calculate it) is below a certain ratio. Basically to protect bondholders certain liquidity and/or solvency ratio must be maintained , before shareholders would get their money.
Thank you professor! Your lessons are so intriguing and informative
Excellent Class. You made my days in India.
Professor..
You are the best...
The sessions seems not fully recorded because the videos abruptly end. Enjoying your courses. Thanks.
The battery in my mike died with a couple of minutes left in the class. Sorry!
@@AswathDamodaranonValuation A couple of minutes is a quarter of a lifetime 1:12:18 🤓
Many thanks professor Damodaran for all your courses
Question about hostile acquisitions: if an acquire intent to screw a company’s stock price then do the hostile acquisition, that’s possible right?
I still didn't get the difference between maximising stock price and maximising stock holder wealth. Isn't a stock holder wealth directly correlated with the share price or is it about paying dividends
What is the difference between shareholder wealth and firm value?
If u have assets that are worth 30$, which are funded by 20$ of equity and 10$ of debt.
In that case your firm value is 30$ (wealth that we can attribute both to shareholders and lenders),
And shareholder wealth is 20$ (wealth only to shareholders).
Could someone please elaborate what is the difference between protected bondholders and not (or not fully) protected bond holders?
Does it mean that the loaned money is considered as debt, but not equity (hybrid loan) = protected?
1:09:45
Protected bondholders have bond covenants protecting their investments, e.g. the company can't pay dividends to shareholders if its cash would drop below a certain amount, or if its interest coverage ratio (e.g. EBIT/interest, but there are a lot of modification how to calculate it) is below a certain ratio.
Basically to protect bondholders certain liquidity and/or solvency ratio must be maintained , before shareholders would get their money.
@@tormabulcsu Okay thanks!
Hi Professor, I am unable to download the slides
professor, No class yesterday (Mon-17th Feb)?
Hi! the slides can´t be downloaded
Try now. My fault.
first comment yay .. thank you Mr. Aswath
Open borders