Corporate Financial problems

[deepikajuneja]

Hi,

I am a student of SCDL.. I need a project for Corporate financial problems for alteast 60 pages...

[psbarje@gmail.com]

ooking for a way to solve today's corporate financial problems? In an opposite spin to Mad magazine's Alfred E. Neuman's what-me-worry attitude, try this technique: Start worrying.

"Worry works," says Harvard Business School Professor Richard M. Ruback. Well, it works, he adds, with this caveat: "The trick is to figure out how to worry constructively." The reason is quite simple: "While you're worrying about something, you're thinking about what to do. You are really just developing an action plan, so that when the situation you have been worrying about occurs, you're ready with a plan and more able to make rational decisions.

"If it's a brand new situation that you've never worried about--and you don't have an action plan--you may be unprepared to make an important decision."

Ruback, the Willard Prescott Smith Professor of Corporate Finance, will lead the HBS/FEI Executive Program for Chief Financial Officers from March 16 to 20, 2003 at the Harvard Business School in Boston, which is accepting only a limited number of participants. The program, in its seventh year, will take the classic Harvard case study method a significant step further. For the first time, this year, the program will combine solving actual problems that participants submit, as well as adding a systematic approach to problem solving.

"We all think that we are more rational than we are, and...

[psbarje@gmail.com]

These days, the Corporate Finance MBA is one of the most popular and significant courses in the framework of the MBA program.

The methodology of imparting knowledge is such that the Students of the Corporate Finance MBA program are exposed to real-life means practical experiences. These organizations aid the students by gaining experience in problem areas for the financial management of these firms.

The MBA students are assigned to projects for firms like investment banks, public corporations and private companies. Vital issues like capital management, joint undertaking and alliances, evaluation of funds and the sources, capital disbursement plans ate taught. During the course each student is supposed to work on various diverse financial projects during the academic year. The classes are affiliated with different institutions like corporations, firms and banks.

[psbarje@gmail.com]

"Our major financing event has been the post year-end Pound (L) 1.54 billion securitisation, arranged by Morgan Stanley Dean Witter
and supported by cash flows from the Broadgate Estate. L1.54 billion quite a large number -- represents 73% of the value of the Broadgate assets which have been securitised, reflecting the quality and strength of the long-term underlying leases. The secured element of the Notes is limited to L100 million and there is no recourse to British Land itself, the Notes being obligations of fully ring-fenced subsidiaries. The issue allows British Land to manage its Broadgate business and assets in an effective and financially efficient manner for the foreseeable future, and there is a range of maturities extending out to 2038 with significant early repayment flexibility. Our recent Broadgate building purchases (100 Liverpool Street
, 155 and 175 Bishopsgate) were at yields of 7% while the funding cost of the securitisation is 6.15%. . . .During the year we also added a L110 million unsecu red syndicated revolving facility arranged by WestLB Bank and, since the yearend, we increased the amount of the 135 Bishopsgate securitisation to L137.8 million.

Following successful completion of the securitisation we have pushed the weighted average maturity of our borrowings, excluding the joint ventures, out to 23 years (1998 -- 19.9 years) and the weighted average interest rate is down to 7.3% (1998-8.49%). . .In April 1999, the Group announced the launch of the L1,540 million fixed rate Broadgate (Funding) PLC Notes. The proceeds of the securitisation are being used to repay bank debt on revolving facilities, which are then available for redrawing. As part of the securitisation, surplus derivatives which previously hedged bank debt have been closed out resulting in the L68 million exceptional item. Following this innovative financing the Group debt is predominately fixed, although it is expected that the position will revert to a proportion of variable rate in the near term". (British Land PLC, 1999 Annual Report and Accounts)

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n addition to the direct application of securitization by public authorities, privatization


has been facilitated by enabling financiers to refinance debt taken out to finance acquisitions by means of securitizing portions of the acquired assets. Retention of a residual interest




in the securitized

pool offers the acquirer profit associated with efficient management of the assets while freeing up capital that was tied up in financing the capital component of the assets. In the U.K. purchases from the government of student loans and military housing, and rail operating companies have been refinanced with securitization.

In the U.K. the private finance initiative (PFI



) seeks to transfer the provision of many public services to the private sector. Private sector consortiums bid for PFI contracts. Part of the criteria for being awarded the contract is the ability to structure and secure long term funding for the project on favorable terms, such that when incorporated into the overall bid, it offers the public sector "value for money". In addition to funding the projects, the private sector is responsible for building, maintaining and operating the facilities or services.

Annington Homes, the group owned by Nomura, Black Rock Capital and the Electra Fleming Fund purchased 55,000 housing units from the Ministry of Defense (MoD) in November 1996 via a Private Finance Initiative tender. Annington homes refinanced its portfolio of MoD housing via two separate securitization transactions: Annington Finance No. 1 (10/96) and Annington Finance No. 4 (12/97). Annington Finance No. 1, a three-tranche deal, is collateralized by the MoD guaranteed rental stream associated with the acquired portfolio of housing. Annington No. 4, a three tranche transaction, is supported by the non-guaranteed portion of the rental stream and proceeds from dispositions of homes. (Annington Finance No. 4 PLC, Residential Mortgage: New Issue, Fitch IBCA



, February 9,2000)

Privatization of the British railroad system has sparked a number of innovative securitization transactions by the rail operating companies to refinance portfolios of operating leases on rolling stock

. Leases on rolling stock in production have also been refinanced by the lessor through a secured loan securitization structure. In secured loan schemes a secured loan is made by a SPV

to a lessor/operating company. An issuing vehicle is established to finance the secured loan in the securities markets.

Porterbrook is one of the three U.K. Rolling Stock Operating Companies (ROSCO

) that was privatized by the U.K. government in 1995. Porterbrook was initially purchased by Charterhouse
Development Capital and Porterhouse Management. In 1996 Porterbrook was acquired by Stagecoach Holdings a U.K. based multinational transportation company. In April of 2000 Porterbrook was sold to Abbey National.

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* Low cost of funds










(all in fixed cost of 7.4% per annum

) with maximum proceeds raised.

* Funding with no recourse to Stagecoach and only limited recourse

to Porterbrook.

* TOC default risk (and related UK government underpinning) transferred to bondholders.

* Primarily AAA/Aaa rated structure.

* Long term funding with repayment profile matching underlying cashflows.

[psbarje@gmail.com]

n addition to the risk of obligor default, in this case the Train Operating Companies that lease rolling stock, securitizing operating leases on specialized equipment entails the risk that the equipment can not be released without costly delays in the event of a lessee default or when the lease expires. This risk is mitigated by the public value that the Train Operating Companies supply. Liquidity enhancements are established to bridge expected delays that would arise in releasing. When the leases are on Rolling Stock that has not been constructed, completion risk must be added to the risk equation. Securitization of leases on trains that have not yet been built or delivered is a future flow transaction much like the transactions that securitize

receivables that will be generated by the future production and export of commodities.

[psbarje@gmail.com]

The Master of Corporate Finance is to prepare students to offer high quality solutions to financial problems, both operationally and strategically.

The Program is designed to provide students with the most advanced techniques of Financial Management and with an accurate knowledge and comprehension of the principles that lie behind sound financial decisions. The objectives are:
- to increase knowledge through the analysis of models, methods and financial techniques
- to develop problem solving skills, through the analysis of cases and real accounts of corporate financial decisions. You will get a close-up, hands-on look at the complex environment of the professional world
- to prepare behaviour and stimulate learning, through teaching methods based on group work, case discussions, in-company activities, meeting with corporate managers and some distance learning.

The MCF is an intensive, full time course based on the teaching methods:

Class sessions
Case study discussions in small groups as well as in class
Simulations and role-playing exercises
Visiting professors, professional and business guest speakers
In-company projects, either individual or in group
Extensive use of the top international financial databases (Bloomberg, Datastream and so on)

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HASE 1 - Core Courses

Six courses to develop financial knowledge, models and tools. Participants must attend all courses and take compulsory exams on all 6 courses.
- Financial Management
- Financial Analysis
- Capital Markets
- Corporate Valuation
- Mergers & Acquisitions
- Financial Modelling

PHASE 2 - Advanced Courses

Participants must attend all courses and take compulsory exams on 6 out of the 8 following Advanced Courses; these courses are highly focused from a professional standpoint, for this reason professionals and managers with outstanding experience and skills are responsible for some of these courses.
- Real Estate Finance
- Project Finance
- Financial Strategy
- Corporate Financial Policies
- Financial Databases
- Economics
- Finance Function and Corporate Governance
- Negotiation & Leadership