Advanced Topics in Finance FIN 647 P.V. Viswanath Comments for beginning of class Spring 2005

P.V. Viswanath2 Issues from Feb. 3  Poison Pills How is a poison pill positive for shareholders? How can a poison pill be bad for shareholders? How does a company legally influence shareholders to accept a poison pill? Sometimes it would benefit shareholders but I feel it would have more of a negative impact because an interested investor could not invest much needed capital that the company may need.

P.V. Viswanath3 Issues from Feb. 3 (contd.)  Poison Pills How is poison pill actually put in place? How to make sure that a "poison pill" is good for the shareholders?  Capital Leases Why does net income remain unchanged when operating lease expenses are capitalized?  How to handle the R&D expenses