Question

Define the following terms (20 pts.): Blended Valuation Approach Ex-dividend date Optimum Capital Structure Financial Distress Pecking-Order Theorem Merger & Acquisition (M&A) EV/EBITDA Equity Value ผู้ Put Option Black Scholes Model

Answer 1

As per policy, only first four parts of a question are allowed to answer at a time, so answering first four definitions:

Definitions :

Blended Valuation Approach : Blended Valuation is approach that defines the concept where the value by nature is whole, also indivisible, intact and integrated with each factor; integrated, still forms a part of and carries contents of financial and socio-economic values.

Ex-dividend date : The ex-dividend date for stocks is usually declares before the record date, beyond which purchase of stock will not receive the forthcoming dividend.

Optimum Capital Structure : An optimal capital structure is defined as best mix of debt, preferred shares and equity which maximizes a company's share market price by minimizing the company’s overall cost of capital.

Financial Distress : Financial distress can be defined as the position of a firm where the promises placed to the creditors are not honored or payment is being made with difficulty and by borrowing costly finance.