UOL Corporate Finance tuition, Financial Management Tuition in Singapore

SMS Val @ 9758-7925 or email enquiry@starcresto.com for corporate finance or financial management tuition. 

Background
LSE (UOL) Modules have a very high failure rate due to complexity of the module. Many faced problems trying to grasp the concept and calculations. As such, we devised our own teaching methodology specially for UOL students. The notes, along with the guided help from our tuition have helped many passed with flying colours.

I have 11 years of teaching experience and I specialized in UOL modules. I provide extra exercises when deemed fit, detailed explanations and tutorials for my students. 

I offer both one-to-one and group tuition. For group tuition, the optimal number of students per class is between 4 to 6. Please form your own group because this will facilitate my teaching methodology. 

Teaching Methodology: 

1. Understanding concepts and application of concept to questions 
2. Developing graphing skills 
3. Identifying exam trends and skills (Questions spotting) 
4. Practicing variety of questions to prepare you for your exam 
5. Simplifying difficult concepts 
6. Identifying and improving your weakness 
Do contact me at 9758-7925 or email tutor@tertiarytuition.com for tuition. 

Student's Profile: 

> Tertiary Student --
**Poly / JC (NYP, RP, SP, TP, NP, MDIS, Informatics, SIM, SAS, ACSI)
**University (NTU, NUS, SMU, Imperial College, London School of Economics, University of Durham, Uni SIM, UOL, RMIT, SAS, MDIS, University of Southern Australia, James Cook University, University of Newcastle, London School of Economics, Manchester Business School, University of Nottingham, Melbourne Business School)
**Master (Insead, Singapore Management University, NTU, UCLA, UC Berkeley, Manchester, Uni of Southern Australia, Uni of Buffalo, Uni of Adelaide, NUS, University of State of New York)
> Working Adults -- Managers, Deputy Directors, Managing Directors, Doctors, Divisional Directors, Auditors, Analyst, Credit Advisor, AVP

Tutor's Profile: 
> Name -- Valerie Chai Hui Yee 
> O Level -- 8 Distinctions for O'Level 
> Diploma -- Singapore Polytechnic: Merit Diploma, Honours Roll, SIM Award, Singapore Polytechnic and School of Business Scholar 
> Degree -- Nanyang Business School: First Class Honours, Dean List, C.H. Wee Gold Medal, Sumitomo Banking Corporation Scholar 
> Post Graduate -- Certified Financial Analyst: CFA L1 
> Experience -- 11 years as tutor, 4 years as Corporate Trainer 
> Status -- Full time trainer 


UOL Modules that are taught by Us:

1. Introduction to Economics
2. Principles of Banking & Finance
3. Corporate Finance
4. Financial Management
5. Principles of Accounts
6. Statistics 1
7. Statistics 2
8. Maths 1
9. Maths 2
10. Elements of Econometrics
11. Audit
12. Value Security Analysis
13. Macro Economics
14. Micro Economics
15. Investment Management
16. Elements of Econometrics

For more information, you can visit 
1. Tutor's trainer profile: www.tertiarytuition.com
2. UOL Tuition: www.uoltuition.com
4. About Us: www.starcresto.com

UOL Corporate Finance Tuition in Singapore - SMS 9758-7925 for finance tutor

SMS Val @ 9758-7925 or email enquiry@starcresto.com for corporate finance or financial management tuition. 

Background
LSE (UOL) Modules have a very high failure rate due to complexity of the module. Many faced problems trying to grasp the concept and calculations. As such, we devised our own teaching methodology specially for UOL students. The notes, along with the guided help from our tuition have helped many passed with flying colours.

I have 11 years of teaching experience and I specialized in UOL modules. I provide extra exercises when deemed fit, detailed explanations and tutorials for my students. 

I offer both one-to-one and group tuition. For group tuition, the optimal number of students per class is between 4 to 6. Please form your own group because this will facilitate my teaching methodology. 

Teaching Methodology: 

1. Understanding concepts and application of concept to questions 
2. Developing graphing skills 
3. Identifying exam trends and skills (Questions spotting) 
4. Practicing variety of questions to prepare you for your exam 
5. Simplifying difficult concepts 
6. Identifying and improving your weakness 
Do contact me at 9758-7925 or email tutor@tertiarytuition.com for tuition. 

Student's Profile: 

> Tertiary Student --
**Poly / JC (NYP, RP, SP, TP, NP, MDIS, Informatics, SIM, SAS, ACSI)
**University (NTU, NUS, SMU, Imperial College, London School of Economics, University of Durham, Uni SIM, UOL, RMIT, SAS, MDIS, University of Southern Australia, James Cook University, University of Newcastle, London School of Economics, Manchester Business School, University of Nottingham, Melbourne Business School)
**Master (Insead, Singapore Management University, NTU, UCLA, UC Berkeley, Manchester, Uni of Southern Australia, Uni of Buffalo, Uni of Adelaide, NUS, University of State of New York)
> Working Adults -- Managers, Deputy Directors, Managing Directors, Doctors, Divisional Directors, Auditors, Analyst, Credit Advisor, AVP

Tutor's Profile: 
> Name -- Valerie Chai Hui Yee 
> O Level -- 8 Distinctions for O'Level 
> Diploma -- Singapore Polytechnic: Merit Diploma, Honours Roll, SIM Award, Singapore Polytechnic and School of Business Scholar 
> Degree -- Nanyang Business School: First Class Honours, Dean List, C.H. Wee Gold Medal, Sumitomo Banking Corporation Scholar 
> Post Graduate -- Certified Financial Analyst: CFA L1 
> Experience -- 11 years as tutor, 4 years as Corporate Trainer 
> Status -- Full time trainer 


UOL Modules that are taught by Us:

1. Introduction to Economics
2. Principles of Banking & Finance
3. Corporate Finance
4. Financial Management
5. Principles of Accounts
6. Statistics 1
7. Statistics 2
8. Maths 1
9. Maths 2
10. Elements of Econometrics
11. Audit
12. Value Security Analysis
13. Macro Economics
14. Investment Management

For more information, you can visit 
1. Tutor's trainer profile: www.tertiarytuition.com
2. UOL Tuition: www.uoltuition.com
4. About Us: www.starcresto.com

Corporate Finance / Financial Management Tuition in Singapore by Full time Gold Medal First Class honours Finance Tutor Trainer. SMS 9758-7925 for tuition!

SMS Val @ 9758-7925 or email enquiry@starcresto.com for corporate finance or financial management tuition. 

Background
LSE (UOL) Modules have a very high failure rate due to complexity of the module. Many faced problems trying to grasp the concept and calculations. As such, we devised our own teaching methodology specially for UOL students. The notes, along with the guided help from our tuition have helped many passed with flying colours.

I have 11 years of teaching experience and I specialized in UOL modules. I provide extra exercises when deemed fit, detailed explanations and tutorials for my students. 

I offer both one-to-one and group tuition. For group tuition, the optimal number of students per class is between 4 to 6. Please form your own group because this will facilitate my teaching methodology. 

Teaching Methodology: 

1. Understanding concepts and application of concept to questions 
2. Developing graphing skills 
3. Identifying exam trends and skills (Questions spotting) 
4. Practicing variety of questions to prepare you for your exam 
5. Simplifying difficult concepts 
6. Identifying and improving your weakness 
Do contact me at 9758-7925 or email tutor@tertiarytuition.com for tuition. 

Student's Profile: 

> Tertiary Student --
**Poly / JC (NYP, RP, SP, TP, NP, MDIS, Informatics, SIM, SAS, ACSI)
**University (NTU, NUS, SMU, Imperial College, London School of Economics, University of Durham, Uni SIM, UOL, RMIT, SAS, MDIS, University of Southern Australia, James Cook University, University of Newcastle, London School of Economics, Manchester Business School, University of Nottingham, Melbourne Business School)
**Master (Insead, Singapore Management University, NTU, UCLA, UC Berkeley, Manchester, Uni of Southern Australia, Uni of Buffalo, Uni of Adelaide, NUS, University of State of New York)
> Working Adults -- Managers, Deputy Directors, Managing Directors, Doctors, Divisional Directors, Auditors, Analyst, Credit Advisor, AVP

Tutor's Profile: 
> Name -- Valerie Chai Hui Yee 
> O Level -- 8 Distinctions for O'Level 
> Diploma -- Singapore Polytechnic: Merit Diploma, Honours Roll, SIM Award, Singapore Polytechnic and School of Business Scholar 
> Degree -- Nanyang Business School: First Class Honours, Dean List, C.H. Wee Gold Medal, Sumitomo Banking Corporation Scholar 
> Post Graduate -- Certified Financial Analyst: CFA L1 
> Experience -- 11 years as tutor, 4 years as Corporate Trainer 
> Status -- Full time trainer 


UOL Modules that are taught by Us:

1. Introduction to Economics
2. Principles of Banking & Finance
3. Corporate Finance
4. Financial Management
5. Principles of Accounts
6. Statistics 1
7. Statistics 2
8. Maths 1
9. Maths 2
10. Elements of Econometrics
11. Audit
12. Value Security Analysis
13. Macro Economics
14. Investment Management

For more information, you can visit 
1. Tutor's trainer profile: www.tertiarytuition.com
2. UOL Tuition: www.uoltuition.com
4. About Us: www.starcresto.com

UOL Corporate Finance Tuition in Singapore by Gold Medal Award Holder First Class Honours Graduate Tutor

Having problems with understanding your corporate finance concepts or having issues with your calculations? etc? SMS Val @ 9758-7925 or email enquiry@starcresto.com for tuition. 

Background
LSE (UOL) Modules have a very high failure rate due to complexity of the module. Many faced problems trying to grasp the concept and calculations. As such, we devised our own teaching methodology specially for UOL students. The notes, along with the guided help from our tuition have helped many passed with flying colours.

I have 10 years of teaching experience and I specialized in UOL modules. I provide extra exercises when deemed fit, detailed explanations and tutorials for my students. 

I offer both one-to-one and group tuition. For group tuition, the optimal number of students per class is between 4 to 6. Please form your own group because this will facilitate my teaching methodology. 

Teaching Methodology: 

1. Understanding concepts and application of concept to questions 
2. Developing graphing skills 
3. Identifying exam trends and skills (Questions spotting) 
4. Practicing variety of questions to prepare you for your exam 
5. Simplifying difficult concepts 
6. Identifying and improving your weakness 
Do contact me at 9758-7925 or email tutor@tertiarytuition.com for tuition. 

Student's Profile: 

> Tertiary Student --
**Poly / JC (NYP, RP, SP, TP, NP, MDIS, Informatics, SIM, SAS, ACSI)
**University (NTU, NUS, SMU, Imperial College, London School of Economics, University of Durham, Uni SIM, UOL, RMIT, SAS, MDIS, University of Southern Australia, James Cook University, University of Newcastle, London School of Economics, Manchester Business School, University of Nottingham, Melbourne Business School)
**Master (Insead, Singapore Management University, NTU, UCLA, UC Berkeley, Manchester, Uni of Southern Australia, Uni of Buffalo, Uni of Adelaide, NUS, University of State of New York)
> Working Adults -- Managers, Deputy Directors, Managing Directors, Doctors, Divisional Directors, Auditors, Analyst, Credit Advisor, AVP

Tutor's Profile: 
> Name -- Valerie Chai Hui Yee 
> O Level -- 8 Distinctions for O'Level 
> Diploma -- Singapore Polytechnic: Merit Diploma, Honours Roll, SIM Award, Singapore Polytechnic and School of Business Scholar 
> Degree -- Nanyang Business School: First Class Honours, Dean List, C.H. Wee Gold Medal, Sumitomo Banking Corporation Scholar 
> Post Graduate -- Certified Financial Analyst: CFA L1 
> Experience -- 10 years of tutoring, Corporate Trainer 
> Status -- Full time tutor 


UOL Modules that are taught by Us:

1. Introduction to Economics
2. Principles of Banking & Finance
3. Corporate Finance
4. Financial Management
5. Principles of Accounts
6. Statistics 1
7. Statistics 2
8. Maths 1
9. Maths 2
10. Elements of Econometrics

For more information, you can visit 
www.tertiarytuition.com or 
www.starcresto.com or 
www.uoltuition.com or 
www.findtuitionteachers.com

UOL Financial Management / Corporate Finance Tuition in Singapore by Finance Tutors. SMS 9758-7925 for tuition!

NOT SURE how to do the calculations from the past year papers, NOT SURE how to link the concepts of MM, agency cost, dividend policies etc such that it can be applied during exam?
SMS Val @ 9758-7925 for tuition.

Background
I have been teaching Business and Corporate Finance full time and have grasp what is important for the test and exam. I have successfully spotted questions that will come out over the past years and this has helped my students scored an average of distinction to high distinction.

I have a total of 10 years experience in teaching and tutoring.

I offer both one-to-one and group tuition. For group tuition, the optimal number of students per class is between 4 to 6. Please form your own group because this will facilitate my teaching methodology.


Teaching Methodology:

1. Understanding concepts and application of concept to questions
2. Developing graphing skills
3. Identifying exam trends and skills (Questions spotting)
4. Practicing variety of questions to prepare you for your exam
5. Simplifying difficult concepts
6. Identifying and improving your weakness

Do contact me at 9758-7925 or email val@starcresto.com or tutor@tertiarytuition.com for tuition.

Student's Profile:

> Tertiary Student -- 
**Poly / JC (NYP, RP, SP, TP, NP, MDIS, Informatics, SIM, SAS, ACSI) 
**University (NTU, NUS, SMU, Imperial College, London School of Economics, University of Durham, Uni SIM, UOL, RMIT, SAS, MDIS, University of Southern Australia, James Cook University, University of Newcastle, London School of Economics, Manchester Business School, University of Nottingham, Melbourne Business School) 
**Master (Insead, Singapore Management University, NTU, UCLA, UC Berkeley, Manchester, Uni of Southern Australia, Uni of Buffalo, Uni of Adelaide, NUS, University of State of New York) 
> Working Adults -- Managers, Deputy Directors, Managing Directors, Doctors, Divisional Directors, Auditors, Analyst, Credit Advisor, AVP 

Tutor's Profile:> Name -- Valerie Chai Hui Yee 
> O Level -- 8 Distinctions for O'Level 
> Diploma -- Singapore Polytechnic: Merit Diploma, Honours Roll, SIM Award, Singapore Polytechnic and School of Business Scholar 
> Degree -- Nanyang Business School NTU: First Class Honours, Dean List, C.H. Wee Gold Medal, Sumitomo Banking Corporation Scholar 
> Post Graduate -- Certified Financial Analyst: CFA L1 
> Experience -- 10 years of tutoring, Corporate Trainer 
> Status -- Full time tutor 

For more information, you can visit www.tertiarytuition.com or www.tuition.starcresto.com

UOL Corporate Finance Tuition in Singapore

NOT SURE how to do the calculations from the past year papers, NOT SURE how to link the concepts of MM, agency cost, dividend policies etc such that it can be applied during exam?
SMS Val @ 9758-7925 for tuition.

Background
I have been teaching Business and Corporate Finance full time and have grasp what is important for the test and exam. I have successfully spotted questions that will come out over the past years and this has helped my students scored an average of distinction to high distinction.

I have a total of 10 years experience in teaching and tutoring.

I offer both one-to-one and group tuition. For group tuition, the optimal number of students per class is between 4 to 6. Please form your own group because this will facilitate my teaching methodology.


Teaching Methodology:

1. Understanding concepts and application of concept to questions
2. Developing graphing skills
3. Identifying exam trends and skills (Questions spotting)
4. Practicing variety of questions to prepare you for your exam
5. Simplifying difficult concepts
6. Identifying and improving your weakness

Do contact me at 9758-7925 or email val@starcresto.com or tutor@tertiarytuition.com for tuition.

Student's Profile:

> Tertiary Student -- 
**Poly / JC (NYP, RP, SP, TP, NP, MDIS, Informatics, SIM, SAS, ACSI) 
**University (NTU, NUS, SMU, Imperial College, London School of Economics, University of Durham, Uni SIM, UOL, RMIT, SAS, MDIS, University of Southern Australia, James Cook University, University of Newcastle, London School of Economics, Manchester Business School, University of Nottingham, Melbourne Business School) 
**Master (Insead, Singapore Management University, NTU, UCLA, UC Berkeley, Manchester, Uni of Southern Australia, Uni of Buffalo, Uni of Adelaide, NUS, University of State of New York) 
> Working Adults -- Managers, Deputy Directors, Managing Directors, Doctors, Divisional Directors, Auditors, Analyst, Credit Advisor, AVP 

Tutor's Profile:> Name -- Valerie Chai Hui Yee 
> O Level -- 8 Distinctions for O'Level 
> Diploma -- Singapore Polytechnic: Merit Diploma, Honours Roll, SIM Award, Singapore Polytechnic and School of Business Scholar 
> Degree -- Nanyang Business School NTU: First Class Honours, Dean List, C.H. Wee Gold Medal, Sumitomo Banking Corporation Scholar 
> Post Graduate -- Certified Financial Analyst: CFA L1 
> Experience -- 10 years of tutoring, Corporate Trainer 
> Status -- Full time tutor 

For more information, you can visit www.tertiarytuition.com or www.tuition.starcresto.com

UOL Corporate Finance / Financial Management Tuition in Singapore by First Class Honours, Gold Medal Award Graduate with 10 years of teaching experience

NOT SURE how to do the calculations from the past year papers, NOT SURE how to link the concepts of MM, agency cost, dividend policies etc such that it can be applied during exam?
SMS Val @ 97587925 for tuition.

Background
I have been teaching Business and Corporate Finance full time and have grasp what is important for the test and exam. I have successfully spotted questions that will come out over the past years and this has helped my students scored an average of distinction to high distinction.

I have a total of 10 years experience in teaching and tutoring.

I offer both one-to-one and group tuition. For group tuition, the optimal number of students per class is between 4 to 6. Please form your own group because this will facilitate my teaching methodology.


Teaching Methodology:

1. Understanding concepts and application of concept to questions
2. Developing graphing skills
3. Identifying exam trends and skills (Questions spotting)
4. Practicing variety of questions to prepare you for your exam
5. Simplifying difficult concepts
6. Identifying and improving your weakness

Do contact me at 9758-7925 or email val@starcresto.com or tutor@tertiarytuition.com for tuition.

Student's Profile:

> Tertiary Student -- 
**Poly / JC (NYP, RP, SP, TP, NP, MDIS, Informatics, SIM, SAS, ACSI) 
**University (NTU, NUS, SMU, Imperial College, London School of Economics, University of Durham, Uni SIM, UOL, RMIT, SAS, MDIS, University of Southern Australia, James Cook University, University of Newcastle, London School of Economics, Manchester Business School, University of Nottingham, Melbourne Business School) 
**Master (Insead, Singapore Management University, NTU, UCLA, UC Berkeley, Manchester, Uni of Southern Australia, Uni of Buffalo, Uni of Adelaide, NUS, University of State of New York) 
> Working Adults -- Managers, Deputy Directors, Managing Directors, Doctors, Divisional Directors, Auditors, Analyst, Credit Advisor, AVP 

Tutor's Profile:> Name -- Valerie Chai Hui Yee 
> O Level -- 8 Distinctions for O'Level 
> Diploma -- Singapore Polytechnic: Merit Diploma, Honours Roll, SIM Award, Singapore Polytechnic and School of Business Scholar 
> Degree -- Nanyang Business School NTU: First Class Honours, Dean List, C.H. Wee Gold Medal, Sumitomo Banking Corporation Scholar 
> Post Graduate -- Certified Financial Analyst: CFA L1 
> Experience -- 10 years of tutoring, Corporate Trainer 
> Status -- Full time tutor 

For more information, you can visit www.tertiarytuition.com or www.tuition.starcresto.com

UOL Corporate Finance Tuition in Singapore - Crash course 2 weeks before your exam! SMS 97587925 for tuition!

NOT SURE how to do the calculations from the past year papers, NOT SURE how to link the concepts of MM, agency cost, dividend policies etc such that it can be applied during exam?
SMS Val @ 97587925 for tuition.

Background
I have been teaching Business and Corporate Finance full time and have grasp what is important for the test and exam. I have successfully spotted questions that will come out over the past years and this has helped my students scored an average of distinction to high distinction.

I have a total of 10 years experience in teaching and tutoring.

I offer both one-to-one and group tuition. For group tuition, the optimal number of students per class is between 4 to 6. Please form your own group because this will facilitate my teaching methodology.


Teaching Methodology:

1. Understanding concepts and application of concept to questions
2. Developing graphing skills
3. Identifying exam trends and skills (Questions spotting)
4. Practicing variety of questions to prepare you for your exam
5. Simplifying difficult concepts
6. Identifying and improving your weakness

Do contact me at 9758-7925 or email val@starcresto.com or tutor@tertiarytuition.com for tuition.

Student's Profile:

> Tertiary Student -- 
**Poly / JC (NYP, RP, SP, TP, NP, MDIS, Informatics, SIM, SAS, ACSI) 
**University (NTU, NUS, SMU, Imperial College, London School of Economics, University of Durham, Uni SIM, UOL, RMIT, SAS, MDIS, University of Southern Australia, James Cook University, University of Newcastle, London School of Economics, Manchester Business School, University of Nottingham, Melbourne Business School) 
**Master (Insead, Singapore Management University, NTU, UCLA, UC Berkeley, Manchester, Uni of Southern Australia, Uni of Buffalo, Uni of Adelaide, NUS, University of State of New York) 
> Working Adults -- Managers, Deputy Directors, Managing Directors, Doctors, Divisional Directors, Auditors, Analyst, Credit Advisor, AVP 

For more information, you can visit www.tertiarytuition.com or www.tuition.starcresto.com

Corporate Finance / Financial Management Tuition in Singapore - By First class Honours, Gold Medal Award, 10 years experience tutor

Having problems with understanding IRR, NPV, Capital Budgeting, Financial calculator etc? 
SMS Val @ 97587925 for tuition.

Background
I have been teaching Business and Corporate Finance full time and have grasp what is important for the test and exam. I have successfully spotted questions that will come out over the past years and this has helped my students scored an average of distinction to high distinction.

I have a total of 10 years experience in teaching and tutoring.

I offer both one-to-one and group tuition. For group tuition, the optimal number of students per class is between 4 to 6. Please form your own group because this will facilitate my teaching methodology.


Teaching Methodology:

1. Understanding concepts and application of concept to questions
2. Developing graphing skills
3. Identifying exam trends and skills (Questions spotting)
4. Practicing variety of questions to prepare you for your exam
5. Simplifying difficult concepts
6. Identifying and improving your weakness

Do contact me at 9758-7925 or email val@starcresto.com or tutor@tertiarytuition.com for tuition.

Student's Profile:

> Tertiary Student -- 
**Poly / JC (NYP, RP, SP, TP, NP, MDIS, Informatics, SIM, SAS, ACSI) 
**University (NTU, NUS, SMU, Imperial College, London School of Economics, University of Durham, Uni SIM, UOL, RMIT, SAS, MDIS, University of Southern Australia, James Cook University, University of Newcastle, London School of Economics, Manchester Business School, University of Nottingham, Melbourne Business School) 
**Master (Insead, Singapore Management University, NTU, UCLA, UC Berkeley, Manchester, Uni of Southern Australia, Uni of Buffalo, Uni of Adelaide, NUS, University of State of New York) 
> Working Adults -- Managers, Deputy Directors, Managing Directors, Doctors, Divisional Directors, Auditors, Analyst, Credit Advisor, AVP 

For more information, you can visit www.tertiarytuition.com or www.tuition.starcresto.com

UOL Corporate Finance Exam Questions SET BY Valerie Chai with ANSWERS / Guidelines - SMS +65 97587925 or email enquiry@starcresto.com for UOL tuition

UOL Corporate Finance Exam Questions SET BY Valerie Chai Hui Yee. Please email enquiry@starcresto.com for permission if you want to use the materials. Thank you!

You are in the last lapse before your exam in May. Are you still struggling with your CF? SMS +65 97587925 or email enquiry@starcresto.com for tuition now!

Section A

Question 1

1a) The news in the morning cited the night trading on the London Stock Exchange in their prediction of how the London Market will perform on opening later in the morning. Why? (9m)

1b) How is put-call parity being enforced? (6m) 

1c) Outline how Myers's Debt Overhang Problem and Jensen & Meckling's asset substitution illustrates that MM Theory of capital structure irrelevance is not valid. (10m)


Sample Answers / Guidelines

1a) London Stock Exchange is the benchmark index for the London stock market. By tracking London Stock Exchange’s overnight performance, it is hoping that the performance can provide an indication on the direction of the London stock market at the opening in the morning.

Define market efficiency and talk about the different efficiency - strong, semi strong and weak and also the empirical evidence. For instance, if the market is efficient, stock market will follow a random walk process and therefore it is impossible to base on overnight trading to predict the market movement. The prediction is based on technical analysis outlook and is nothing more than a estimated guess of where the price for a specific investment is likely to move in the coming minutes, hours, days, weeks and even months.

1b) Put call parity puts a theoretical value for both Put and call options, P + S = C + PV(X) where p is the put price, c is the call price, s is the underlying stock price and PV(X) is the present value of the stock price. Put-call parity only holds for European style options and non-dividend paying stocks.

Put-Call Parity is the relationship that must exist between the prices of European put and call options that both have the same underlying asset, strike price and expiration date. The reason why American options does not hold for Put-call parity is because they can be exercised before to expiry.

If put call parity is violated where the theoretical call value is higher than the market value of call option, then arbitrage profit can be made by buying the call option now since it is cheaper and sell it at the higher price in the future at the theoretical call value. Arbitrage transactions will eventually enforce put call parity.

1c) State what Myers's debt overhang problem is. State what asset substitution is. State what MM theory is. Illustrate with numbers

Tutor with 10 Years of Experience to help in your UOL Corporate Finance

Having problems with understanding IRR, NPV, Capital Budgeting, Financial calculator etc? Contact Val @ 9758-7925 for tuition.

Background
I have been teaching Business and Corporate Finance full time and have grasp what is important for the test and exam. I have successfully spotted questions that will come out over the past years and this has helped my students scored an average of distinction to high distinction.

I have a total of 10 years experience in teaching and tutoring.

I offer both one-to-one and group tuition. For group tuition, the optimal number of students per class is between 4 to 6. Please form your own group because this will facilitate my teaching methodology.


Teaching Methodology:

1. Understanding concepts and application of concept to questions
2. Developing graphing skills
3. Identifying exam trends and skills (Questions spotting)
4. Practicing variety of questions to prepare you for your exam
5. Simplifying difficult concepts
6. Identifying and improving your weakness

Do contact me at 9758-7925 or email val@starcresto.com or tutor@tertiarytuition.com for tuition.

Student's Profile:

> Tertiary Student --
**Poly / JC (NYP, RP, SP, TP, NP, MDIS, Informatics, SIM, SAS, ACSI)
**University (NTU, NUS, SMU, Imperial College, London School of Economics, University of Durham, Uni SIM, UOL, RMIT, SAS, MDIS, University of Southern Australia, James Cook University, University of Newcastle, London School of Economics, Manchester Business School, University of Nottingham, Melbourne Business School)
**Master (Insead, Singapore Management University, NTU, UCLA, UC Berkeley, Manchester, Uni of Southern Australia, Uni of Buffalo, Uni of Adelaide, NUS, University of State of New York)
> Working Adults -- Managers, Deputy Directors, Managing Directors, Doctors, Divisional Directors, Auditors, Analyst, Credit Advisor, AVP

Tutor's Profile:

> Name -- Valerie Chai Hui Yee
> O Level -- 8 Distinctions for O'Level
> Diploma -- Singapore Polytechnic: Merit Diploma, Honours Roll, SIM Award, Singapore Polytechnic and School of Business Scholar
> Degree -- Nanyang Business School (Top Business School in Asia), NTU: First Class Honours, Dean List, C.H. Wee Gold Medal, Sumitomo Banking Corporation Scholar
> Post Graduate -- Certified Financial Analyst: CFA L1
> > Experience -- 10 years tutoring, 3 years Tutor Training (Training up other tutors to teach)
> Status -- Full time tutor

For more information, you can visit www.tertiarytuition.com or www.tuition.starcresto.com

Asymmetric information & Agency problem - Problem Understanding? Contact us for UOL Corporate Finance Tuition in Singapore

Asymmetric information & Agency problem

Problem understanding finance concepts? SMS +65 9758-7925 or email enquiry@starcresto.com for tuition =)

"
Agency theory, a premise often associated with Jensen and Meckling (1976), was first predicated by Alchian and Demsetz (1972) who emphasised that activities of firms were governed by the role of contracts to facilitate voluntary exchange. Agency theory explains how best to organise relationships in which one party (principal) determines the work, which another party (agent) performs. Agency problems are created when the shareholders (principals) hire managers (agents) to make decisions that are in the best interests of the share- holders. These theoretical postulations continue that in general people are self-interested and will therefore have conflicts of interest in any cooperative endeavours (Jensen, 1994).

It naturally follows, then that some decisions of managers are motivated by self-interest, which reduces the welfare of the principal. As both parties can experience losses due to problems of conflict of interest, there is a strong motivation to minimise these agency costs of cooperation. Through monitoring and bonding, the costs of writing and enforcing contracts are minimised. Therefore, agency theory provides a theoretical foundation to understand human organisational arrangements including incentive compensation, auditing and many bonding arrangements.

Where incomplete information and uncertainty exist, agency theory posits that two agency problems follow: adverse selection where the principal cannot determine if the agent is performing the work for which s/he is paid, and moral hazard where the principal is unsure as to whether the agent has performed their work to their ability. Incentives and monitoring mechanisms are proposed as safeguards against opportunism (see, Jensen and Meckling, 1976) in the agent/principal relationship. Opportunistic behaviour is assumed in agency theory, and is perceived as self-interest seeking. Thus, the expectation is that the economic actors may disguise, mislead, distort or cheat as they partner in exchange (Wright and Mukherji, 1999).

According to agency theory, information asymmetry occurs where management (agents) have the competitive advantage of information within the company over that of the owners (principals). This results in the principal’s inability to control the desired action of the agent. Information within an organisation is critical, and management working at the “coal face” of the operations of the company are privy to essential information that can be manipulated to maximise their own interests at the expense of the principal (Godfrey et al., 2003).

As a result of the potential conflict between agent and principal, agents are motivated to contract with owners to minimise the goal incongruence of the two parties. It is argued in agency theory that agents seek monitoring contracts because in the absence of such a contract, owners price protect heavily. Hence, agents engage in bonding activities to reduce the totality of costs imposed on them. The costs incurred in monitoring agency contracts
reduce the manager’s compensation, therefore there is incentive for the agents to minimise these costs by refraining from conflict with the principal (Godfrey et al., 2003; Wolk and Tearney, 1997).

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Arnold & Lange (2003), Enron: an examination of agency problems. Critical Perspectives on Accounting, 15 (2004), pp. 751–765

 

  

CAPM Capital Asset Pricing Model - Brief Introduction

The article below talks about CAPM and the formula. Still have issues understanding CAPM? SMS +65 9758-7925 or email enquiry@starcresto.com for tuition!

CAPM: ASSUMPTIONS

Capital asset pricing model assumes that in an open market place, all investors are well-diversified and with homogenous belief, they hold on to the same risky assets. Additionally, there is a risk-free asset where the lending and borrowing rate is the same at rf and there is unlimited amount of capital that are available. Also, it is assumed that the market has perfect information and that all investors are rational and risk averse.

CAPM Illustration

Given the assumptions, it meant that everyone has the same assets to choose from, the same information about the assets and same decision methodology (from Markowitz mean-variance portfolio theory). Thus, everyone would be choosing a portfolio on the same efficient frontier with a mixture of risk-free asset and risky assets (M). That is, everyone sets up the same optimization problem, does the
same calculation, gets the same answer and chooses a portfolio accordingly.

Since everyone is holding on to the same, risky assets portfolio, that is also known as market portfolio. Also, the fact that the investors are well diversified implies that they do not look at standard deviation which measures total risk but only on systematic risk (non-diversifiable risk) which is measured by beta. Hence, CAPM formula can be presented by 

ri = rf + βi(rM − rf)

where 

1. ri --> required rate of return for the ith stock 

2. rf --> risk free rate

3. βi --> beta of the ith stock

4. rM --> return of an average stock / market index

5. (rM − rf) --> market risk premium

6. βi(rM − rf) --> risk premium

 

(C) Valerie Chai Hui Yee, 2014, Capital Asset Pricing Model

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