STRATEGIC

CORPORATE
Strategic Corporate Finance
FINANCE
ASSIGNMENT

Presentation by Anjali Yadav

 Different types of financial
strategies for
shareholder's wealth maximization
Financial strategies are essential for a company's
success and profitability.

Maximizing shareholder wealth is a primary

objective of any business, and companies can
achieve this through various financial strategies,
including
1. dividend policy,
2. capital structure,
3. share buybacks,
4. mergers and acquisitions,
5. and cost-cutting.

INTRODUCTION
DIVIDEND POLICY

● High dividend payout attracts investors looking for steady income

● Reinvesting earnings can finance growth opportunities
● Example of Dividend policy -

The company has consistently paid dividends for over 50 years and has increased its dividend
every year for the past 58 years. This has attracted income-seeking investors and helped increase
shareholder wealth.
SHARE REPURCHASE

● Buying back shares reduces outstanding shares, increases EPS and stock price
● Benefits shareholders who hold on to their shares after the buyback
COST CUTTING

● This involves reducing expenses and improving efficiency to increase profits and
shareholder value.
● This strategy can be effective when implemented correctly, but can also have negative
consequences such as reducing investment in growth opportunities.
● An example of a company that implemented cost-cutting strategies is General Electric (GE).
CAPITAL STRUCTURE

● This refers to the mix of debt and equity used to finance a company's operations.
● A high debt-to-equity ratio can result in higher returns for shareholders but also carries
higher risk, while a low ratio can result in lower returns but less risk.
MERGERS AND ACQUISITIONS

● Can increase revenue and earnings through access to new markets, technologies, and
products
● M&A deals can be risky and expensive, and if not executed properly, can result in a decline
in shareholder wealth
● A recent example of successful M&A is Microsoft's acquisition of LinkedIn.
CONCLUSION

In conclusion, financial strategies play a crucial role in maximizing shareholder wealth and the
long-term success of a company. By implementing effective strategies such as dividend policy,
capital structure, share buybacks, mergers and acquisitions, and cost-cutting, companies can
increase shareholder value and attract more investors.
It is essential for companies to carefully evaluate their financial objectives and choose the right
strategies that align with their goals to achieve sustainable growth and profitability.
Different approaches to infrastructure
project financing
Infrastructure project financing refers to the methods and sources of funding used to
finance large-scale infrastructure projects such as roads, bridges, airports, power plants,
and water treatment facilities.

There are different approaches to infrastructure project financing,

and the choice of financing method will depend
on various factors such as the project size,
complexity, and risk profile.

INTRODUCTION
PUBLIC FINANCING

● Government uses taxpayer money to finance project

● Government can issue bonds or borrow money from banks
● Example of public financing
Construction of public schools, hospitals, and public transportation
systems using government funding.
PRIVATE FINANCING

● In this approach, private investors provide the funding for infrastructure projects.
● Private financing can take various forms, such as bank loans, bonds, or equity investments.
● Development of renewable energy projects such as wind and solar farms using private equity
investments.
PUBLIC-PRIVATE PARTNERSHIPS (PPPs)

● Government and private companies work together to finance and operate the project
● Private sector provides majority of funding, government provides support through tax breaks or
incentives
● Construction and operation of airports, seaports, and water treatment facilities through a
partnership between the government and private investors.
BUILD-OPERATE-TRANSFER (BOT)

● Private company finances, builds, and operates project for a certain period of tim
● Ownership and operation of project transferred back to government after period ends
● Example - A private company builds and operates a water treatment plant for a city under a
BOT agreement. The company recoups its investment by charging the city for the treated
water. After a specified period, the ownership and control of the water treatment plant are
transferred back to the city.
PROJECT FINANCE

● Special-purpose vehicle (SPV) created to finance project

● SPV raises capital and manages project, project's revenues and assets used as collateral for
loans
● Construction of large-scale power plants, pipelines, and mining projects using a consortium
of investors who provide the financing for the project through a special purpose vehicle.
CONCLUSION

In conclusion, infrastructure project financing is a complex and important issue that requires
careful consideration of various factors such as project size, complexity, and risk profile, as well
as the availability of funding sources and the political and regulatory environment. Each
financing approach has its own advantages and disadvantages, and the choice of method will
depend on the specific circumstances of the project.
However, with the right financing structure and management, infrastructure projects can be
successfully financed and implemented, leading to improved economic growth, social
development, and quality of life for communities.
THANK YOU !