SVKM’S NARSEE MONJEE INSTITUTE OF MANAGEMENT

STUDIES
HYDERABAD

POST GRADUATE DIPLOMA IN MANAGEMENT 2018-2020

CORPORATE FINACNCE
PRE- READING SESSION 1 ASSIGNMENT

PREPARED BY:

Sakshi Gulati (80303180064)

Division A
Example 1: The Newspaper Article
Source: https://www.nytimes.com/2017/12/14/business/dealbook/disney-fox-deal.html

a) Decision taken: On December 14, 2017, The Walt Disney Company announced a definitive
agreement to acquire 21st Century Fox for $52.4 billion in stock.

b) Type of Decision: The above decision is an investment decision as it involves acquisition.

c) Stock Market Response: The following article captures the stock market response, post
acquisition.
Example 2: The Newspaper Article

Source: https://www.nasdaq.com/article/chinas-junshi-biosciences-raises-394-mln-after-
pricing-ipo-at-bottom-of-range-20181217-00139

a) Decision Taken: Shanghai Junshi Biosciences has filed for a Hong Kong IPO that is
expected to raise up to $500 million. Junshi is developing a pipeline of 13 biologic drugs,
including immuno-oncology treatments.

b) Type of Decision: The above is an IPO decision hence is a financing decision, because it
involves raising finances through Equity.
Example 3: The Newspaper Article

Source: https://economictimes.indiatimes.com/markets/stocks/news/ioc-announces-share-
buyback-at-rs-149-a-share-whats-in-it-for-you/articleshow/67089645.cms

a) Decision taken: Indian Oil Corporation announced buy back of shares on Dec 14.
b) Type of Decision: The above is a Dividend decision which involves an action to retain
ownership.

c) Stock market reaction:

BOARD OF DIRECTORS:
A board of directors (B of D) is a group of individuals, elected to represent shareholders. A
board’s mandate is to establish policies for corporate management and oversight,
making decisions on major company issues. Every public company must have a board of
directors. Some private and non profit organizations also have a board of directors.

Example: B of D of Colgate Palmolive (India) Limited

 Chairman: Mukul Deoras

 Non-executive & Independent Director (Vice-Chairman): R. A. Shah

 Non-executive & Independent Director (Deputy Chairman): P. K. Ghosh

 Non-executive & Independent Director: Vikram Singh Mehta

 Non-executive & Independent Director: Indu Shahani

 Managing Director: Issam Bachaalani

 Non-executive & Independent Director: Shyamala Gopinath

  Non-executive & Independent Director: Sukanya Kripalu

 Whole-time Director & Executive Vice-President - Sales & Customer Development: M

Chandrasekar

 Whole-time Director & Chief Financial Officer: M.S Jacob

In general, the board makes decisions as a fiduciary on behalf of shareholders. Issues that
fall under a board's purview include the hiring and firing of senior executives, dividend
policies, options policies, and executive compensation. In addition to those duties, a board
of directors is responsible for helping a corporation set broad goals, supporting executive
duties, and ensuring the company has adequate, well-managed resources at its disposal.