In this paper, a method is proposed for evaluating combinations of investments when the cash flows are not known with certainty. Various probability concepts are employed; and combinations are evaluated according to their incremental contribution of expected net-present value and variance to the...

Eine Untersuchung über neue Finanzinnovationen Finanzinnovationen entstehen, weil Finanzmärkte ineffizient und unvollständig sind. Finanzinnovationen bewirken über eine Senkung der Kosten der Finanzintermediation eine effizientere Allokation des volkswirtschaftlichen Sparkapitals....

SUBJECT AREAS: Bonds, corporate restructuring, financial strategy, and expropriation of bondholder wealth. CASE SETTING: 1992, USA, hotel company. This case provides a platform for general discussion of corporate restructuring and the creation/destruction of value. The central issue is the...

SUBJECT AREAS: Capital budgeting; setting up cash flows with inflation, MACRS, and terminal value; payback internal rate of return; and net present value.CASE SETTING: 1995, USA, machinery company.This case involves setting up cash flows for determining the payback, internal rate of return and...