In this lecture, we are going to look at M&A from the perspective of financial economists rather than investment bankers. We have been heavily focused on getting the right price for the target firm.

Short-Term Exchange Rate Behavior Let us summarize a bit what we have done so far in this course. One of the main goals in this course is to construct at a model that allow us to determine the current

So far in this course, we have been heavily focused on merger strategies from the perspective of the acquiring or bidding firms. In most cases in which the merger or acquisition is friendly, the strategy

Let us review the two exchange rate models that we have learned so far. The covered interest parity gives an understanding on how forward exchange rates should be determined. Any interest rate differentials

Assuming we have our maximum willingness to pay or warranted value conditional on beliefs about the future growth of the target firm, how do we actually implement the deal? For example, how should we finance

The marketcap of the entire crypto market is a complete and total lie and I'll explain to you why. First let's begin with why the marketcap of bitcoin itself is completely inaccurate, and just as a reminder,

Asset Returns, Risk and Liquidity From last week’s homework, what you should realize is that the covered interest parity is really a model to derive the implied forward exchange rate. We take the domestic

The purpose of this lecture is to discuss further the flexibility of the DCF method and to provide you with additional robustness checks to make sure the number you arrived using this method is not crazy.

Investment Implications from Global Events The goal of today’s lecture is twofold. First, I want to introduce to you some quote conventions used in the foreign exchange or Forex markets. Second, I want

Possible Alternatives to DCF The goal of today’s lecture is to introduce a valuation method that is general and thus flexible that you can adapt to value almost any type of firm and transaction. Corporate

The purpose of these blog posts is to provide commentary for my lecture slides. Lecture slides will only be provided through the university website. If you have any questions or comments, please write

The purpose of these blog posts is to provide commentary for my lecture slides. Lecture slides will only be provided through the university website. If you have any questions or comments, please write