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M&A, CAPM, and valuation

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1. What are the major valuation methods for financial assets? What projection should you make and what variables should you estimate? Please discuss the general valuation process

2. What was the true cause of the worst financial crisis the world has seen since the Great Depression? Please provide an analysis of the factors that fueled the worldwide financial meltdown and your personal view on the lessons we should have learnt from the crisis.

3. Hedge fund industry has grown rapidly in the past decade in the US. Please discuss the differences between hedge fund and mutual fund in term of fund structure, investment strategy and risk exposure.

4. What is PE ratio? What is the relationship between PE ratio and the growth rate, cost of capital, risk and the valuation of a Corporation?

5. Please discuss CAPM and WACC, including their assumptions, calculation methods and areas of applications. What problems should we pay attentions to in real application?

6. What are the basic steps in a merger and acquisition transaction? What are the key issues the management should focus on in the M&A process? Please discuss.

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