1. Study Unit 7 Raising Capital, Corporate Restructuring, and International Finance

2. SU- 7.1 – Financial Markets and Security Offerings Benefits of Financial Markets Facilitate the transfer of funds from those that need to invest to those that need to borrow. Directly or indirectly Why indirect? Aggregate view of Financial Markets – Demand/Supply of Securities Can you list some of the securities included? Money Markets vs. Capital Markets Primary Markets, Secondary Markets and Financial Intermediaries Efficient Markets Hypothesis Rating Agencies Investment Banking Flotation costs

3. SU- 7.1 – Financial Markets and Security Offerings IPOs Advantages and disadvantages of going public Steps involved in going public Prospectus Self registrations

4. SU- 7.2 – Dividend Policy and Share Repurchase Dividend Policy “To distribute or not to distribute”? Factors influencing Company Dividend Policy Dividend “dates” Stock dividends vs. stock splits Repurchase DRPs or DRIPS Insider Trading laws Leases

5. SU – 7.3 Mergers and Acquisitions Merger vs. Acquisitions Mergers Types Requirements Advantages and disadvantages Acquisition Requirements Advantages and disadvantages Voluntary vs. involuntary acquisitions “Going private” Continued

6. SU – 7.3 Mergers and Acquisitions Opposition to Combinations Greenmail Staggered Directors Golden Parachutes Fair Price Provisions Going Private and LBOs Poison Pill Flip-over Rights Flip-in Rights Issuing Stock Reverse Tender ESOP White Knight Merger Crown Jewel Transfer Legal Actions Other Restructurings Motivations of mergers and subsequent synergies

7. SU – 7.4 Bankruptcy Conditions for Bankruptcy Chapter 7 Chapter 11

8. SU 7.5 – Currency Exchange Rates Foreign Currency Markets Fixed Exchange Rates vs. Freely Floating Rate Systems Managed Float Exchange Rate Systems Pegged Exchange Rate Systems Exchange Rate Basics

9. Questions