How should the company finance the takeover

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Reference no: EM132095598

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

Reference no: EM132095598

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Reviews

len2095598

8/25/2018 12:21:02 AM

There is no limit but should answer the asked questions, i need only 3rd questions answer thats it, i have already decided the company it woud be Axis bank taking over paytm both are indian companies. Axis bank is listed on stock exchange.

len2095598

8/25/2018 12:20:56 AM

Description / Requirements - This assignment is marked out of 120 and will be converted to 30% of your final grade. This assignment should be completed in a group of 4 students. There is no word limit per se. However, finance is a discipline where “less is more”. The assignment can be either typed or handwritten, or both. Scan your handwritten work as a pdf copy for electronic submission purposes.

len2095598

8/25/2018 12:20:49 AM

Submission Instructions - An electronic pdf copy of the assignment has to be uploaded to CloudDeakin by the due date. You must keep a backup copy of every assignment you submit, until the marked assignment has been returned to you. In the unlikely event that one of your assignments is misplaced, you will need to submit your backup copy.

len2095598

8/25/2018 12:20:44 AM

Notes - Penalties for late submission: The following marking penalties will apply if you submit an assessment task after the due date without an approved extension: 5% will be deducted from available marks for each day up to five days, and work that is submitted more than five days after the due date will not be marked. You will receive 0% for the task. 'Day' means working day for paper submissions and calendar day for electronic submissions. The Unit Chair may refuse to accept a late submission where it is unreasonable or impracticable to assess the task after the due date.

len2095598

8/25/2018 12:20:39 AM

For more information about academic misconduct, special consideration, extensions, and assessment feedback, please refer to the document Your rights and responsibilities as a student in this Unit in the first folder next to the Unit Guide of the Resources area in the CloudDeakin unit site. Building evidence of your experiences, skills and knowledge (Portfolio) - Building a portfolio that evidences your skills, knowledge and experience will provide you with a valuable tool to help you prepare for interviews and to showcase to potential employers.

len2095598

8/25/2018 12:20:34 AM

There are a number of tools that you can use to build a portfolio. You are provided with cloud space through OneDrive, or through the Portfolio tool in the Cloud Unit Site, but you can use any storage repository system that you like. Remember that a Portfolio is YOUR tool. You should be able to store your assessment work, reflections, achievements and artefacts in YOUR Portfolio. Once you have completed this assessment piece, add it to your personal Portfolio to use and showcase your learning later, when applying for jobs, or further studies. Curate your work by adding meaningful tags to your artefacts that describe what the artefact represents.

len2095598

8/25/2018 12:20:28 AM

Consistently accesses information using effective, well-designed search strategies and most appropriate information sources. Synthesizes information and knowledge from a wide range of relevant sources representing various points of view, and critically analyses these information and knowledge; Organizes and synthesizes evidence of reveal insightful patterns, differences or similarity; Information is taken from sources with outstanding interpretation/evaluation to develop a comprehensive analysis or synthesis. Demonstrate an excellent understanding of knowledge with depth in many areas. Proposes exemplary creative solutions that indicates a deep comprehension of the problem and reflects consistently high level of judgement of the pros and cons of the various options and factors impacting on decision making within a professional context.

len2095598

8/25/2018 12:20:15 AM

Solutions are extremely sensitive to a diversity of contextual factors as well as some of the ethical and logical dimensions of the problem. Evaluation of solution contains consistently thorough and insightful explanation and include thorough consideration of the problem, logically examines the feasibility and impact of solutions. Provides outstandingly detailed and insightful guidance as to how solutions were reached in a manner that excellently addresses multiple contextual factors of the problem. Specific position fully takes into account complexities of an issue in a meaningful way. Limits of positions are acknowledged. Others’ points of view are synthesized within position.

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