Corp. Issuers

Question 1

Dispersed / Dispersed

Answer 1

Principal - Agent (Strong mgmt)

Question 2

Concentrated / Concentrated

Answer 2

Principal - Principal (Strong SH)

Question 3

Dispersed / Concentrated

Answer 3

Dual Class (Minority concentrated power)

Question 4

Concentrated / Dispersed

Answer 4

Voting Caps (Legal restrictions)

Question 5

ESG: Equity

Answer 5

Opportunity and Downside risk

Question 6

ESG: Fixed Income

Answer 6

Downside Risk

Question 7

Green bonds

Answer 7

Additional costs y demanda implica tight spreads

Question 8

Global CAPM

Answer 8

No significant risk across countries (Developed)

Question 9

International CAPM

Answer 9

All economies are fully integrated

Question 10

Special dividend

Answer 10

Strong earnings year

Question 11

Liquidating dividend

Answer 11

assets distributed, sell a portion of bussiness

Question 12

Cash Dividends

Answer 12

Bajan assets, bajan equity

Question 13

Stock Dividend

Answer 13

No afecta P/E, ni proportional share, baja volatilidad en share price, no afecta assets ni equity

Question 14

Características de dividendo

Answer 14

Bajan share price, NI se mantiene, no afecta wealth ni FCF

Question 15

Jensen FCFE

Answer 15

Payout all FCFE mitigate issue between managers and SH

Question 16

Repurchase

Answer 16

Sube stock price, affect BS y IS

Question 17

Repurchase in the open market

Answer 17

At different prices que dan soporte y es la most cost effective

Question 18

Greenmail

Answer 18

Buy fixed number of shares at fixed price (usually at premium)

Question 19

Direct negotiation repurchase

Answer 19

With a major SH at fixed price at discount

Question 20

Price de compra > BVPS

Answer 20

BVPS baja

Question 21

Director independence

Answer 21

+20%

Question 22

Board structure one tier

Answer 22

internal and external

Question 23

Board structure two tier

Answer 23

Supervisory board

Question 24

ESG Propietary method

Answer 24

Self firm judgement of external information

Question 25

ESG Data providers

Answer 25

Venden Info (MSCI & Sustainalytics)

Question 26

Non-profit organization

Answer 26

Develop reporting (International Integrated Reporting Council Global Reporting Initiative)

Question 27

Cost of debt public traded

Answer 27

YTM on longest maturity existing debt

Question 28

Curve upward sloping (ERPst)

Answer 28

Overestimated

Question 29

ERP DDM estimation

Answer 29

E[D1/Vo] + E[g] - rf

Question 30

re DDM estimation

Answer 30

D1/Vo + g

Question 31

BYPRP re

Answer 31

Rltd + EquityIndexReturn - CorporateBondIndexReturn

Question 32

Restructuring costs

Answer 32

Outsourcing y offshoring

Question 33

Restructuring BS

Answer 33

Change capital structure

Question 34

Restructuring reorganization

Answer 34

Restructured Debt or LBO

Question 35

Material Transaction

Answer 35

10% of EV or less fit with operations