International Finance & Financial Management

Merger and Acquisition  As of July 11th 2018, Disney has been reported purchasing 21st Century Fox assets with the form payment of cash and stocks. It is set that Disney has purchased Fox for the amount of $71.3 billion for the partial assets of Sky TV and Indie TV. As the factor that cause Disney in the acquisition of 21st Century Fox is that Disney wants to open a new streaming industry to create a new target market for more audience/viewers to increase Disney's brand image. As according to Statisca (2018), the numbers mention that over the years the amount of streaming user has increased consistently. It is so consistent that it's a bad decision if a investor actually decides to not invest at a streaming industry. As this is why Disney wants to start a streaming industry as due to the reason as today millennial are often addicted to games and online movies, as the 2012 data shows that there are 171.6 million users of online streaming in the US. While it is pre...

In the movie The Big Short that was really during 2016, the movie explains about the process on how the 2008 financial crisis actually happened from the start till the end. In one of he scenes of the movie, what happen is that the bank increases the credits ratings of the Collateralized Debt Obligations (CDO) as they provided triple A bonds to investors but the bonds are actually worth lower than triple B bonds. At the same time they provided mortgages to families that can't actually effort to pay the long term loan in the future. This results to the banks not being able to receive payment form the poor families and also not being able to repay the bonds issued to the investors even though the bank pronounce the bonds as "Triple A" bonds with the most unlikely bonds to default or impossible to default but in the end the bonds defaulted. Obviously the cause of the financial crisis in 2008 is due to fraudulent system by the banks, thus the corporate valuation and the asse...

In this week 7, the topic that i have chosen is dividend policy. The dividend policy that i would be talking about this week is about Modigliani & Miller's famous dividend policy which is the dividend irrelevance. As according to Modigliani & Miller said that dividend irrelevant means that shareholder getting dividend doesn't mean anything, and shareholder not getting dividend doesn't also meant that the business is failing or the company's share is worthless. A company is more than just receiving dividend, it is also judge on if the company can create a effective investment policy which can result to an increase of Net Present Value (NPV), share price, and definitely shareholder wealth. A case that once happen to my parents as an investor is that 6 years ago my dad decided to invest in a company that provide electronic products such as laptops, cooking machines, and television. The first 2 years was a mess as my dad would not receive any dividend or sometim...

Week 6 Blog Back in my country; Indonesia, there is a chicken noodle shop own by my Grandma's best friend. The business is called "Bakmi GM". Bakmi GM is basically a chicken noodle shop that was first during the year 1959 by a young couple named after  Tjhai Sioe and Loei Kwai Fong. The first time it opens,it only opens in a small food truck on the side of the road only being able to serve 5 customers at once. The business has its ups and downs in regarding the sales of the noodles, as the couple issued loans to actually create the business at the first place but they weren't able to repay the loans. As days go by with the business almost shutting down soon, there was a  food reviewer that decided to eat at Bakmi GM stall as he can't find any other restaurants to eat at near that area. He tried the food and fell in love with the food and decided to write reviews regarding the food and what the food tastes like. Immediately a bunch of customers came to eat ther...

The Big Short: 2008 Financial Crisis During the time of 2016 a movie was released called "The Big Short". The movie is basically explaining how the 2008 financial crisis in the United States actually happens and the result after the financial crisis occurred. Basically the movie explains about the economy crisis that is happened during the year 2008, it's cause by over investment on the collateral debt obligations and poor family issuing mortgage that they can't pay. In the end of the movie, tons of low income people are not able to pay which leads to the load becoming default, which results to the bank confiscating the houses they lived in. Although the houses have been confiscated, the banks are not able to sell the houses since no one will buy them which leads to depreciation in the future. The leads to banks on debt to themselves as investors have invested 1 billion dollars on credit default swap. as the Bank can't pay the investors this leads to...