the clientele effect is the differential preferences for dividends by different groups of investors.
Projects with shorter paybacks do not necessarily have a positive NPV.
the takeover premium should be computed based on the price prior to the run-up.
Financing costs are not subtracted from the cash flows for either the NPV or the IRR. The effects of financing costs are captured in the discount rate used.
The Coase theorem states that if an externality can be traded and there are no transaction costs, then the allocation of property rights will be efficient and the resource allocation will not depend on the initial assignment of property rights
Higher-than-expected inflation increases the corporation’s real taxes because it reduces the value of the depreciation tax shelter; it also decreases the real interest expense because payments to bondholders in real terms are lower than expected.
In a consolidation, the acquiring company and target company cease to exist and form a new company.
The static trade-off theory indicates that there is a trade-off between the tax shield from interest on debt and the costs of financial distress, leading to an optimal amount of debt in a company’s capital structure.
Expected dividend = Previous dividend + (Expected earnings × Target payout ratio − Previous dividend) × Adjustment factor(1/年数)
Voting caps describe legal restrictions on the voting rights of large share positions and are usually designed to deter foreign investors from obtaining control of strategically important local companies.
market scrutiny：市場の監視の目
An equity carve-out involves sale of equity in a new legal entity to outsiders and would thus result in a cash inflow for Moonbase. A spin-off or a split-off does not generate a cash flow to the firm.
The EAA (PV = NPV, N = 年数, and i ⇒cpt PMT)
