Finance Tutor at University of [University Name] - Specializing in Corporate Finance

Saumya is helping Ruan understand game theory concepts by working through a problem involving three players choosing to exert effort or not. They calculate payoffs for different strategy combinations and identify Nash equilibria by determining if any player has an incentive to deviate. They've found some Nash equilibria and are continuing to analyze the problem.

Saumya and Ruan reviewed game theory concepts, including dominant strategies, Nash equilibrium, and different types of games, using a past exam paper as a guide. They worked through problems involving payoff matrices and iterated deletion. They plan to continue with game tree problems in the next session, and Ruan will send additional exam papers to Saumya.

Saumya and Ruan collaborated on corporate finance questions, specifically analyzing financing strategies and calculating YTM, market values, cost of equity via CAPM, and WACC. Ruan practiced applying formulas and interpreting financial data. They discussed potentially rescheduling the next session due to Ruan's travel plans and agreed to cover game theory next time.

Saumya guided Ruan through a corporate finance problem involving dividend policy changes and the calculation of present values, followed by a discussion of the asset substitution problem and its implications for agency costs of debt. They also touched on trade-off theory and pecking order theory in relation to capital structure. Ruan will work on question three for the next session, after which they plan to move on to game theory.

On July 16, 2025, Ruan and Saumya met to discuss calculating the implied cost of equity using the Dividend Discount Model (DDM) with multiple growth rates. They decided to use a "hit and trial" method to solve for the cost of equity (RE). They then practiced this method and discussed exam preparation, focusing on past exam questions, particularly question 2 from the 2023-2024 paper, which focuses on cost of equity. They plan to review CAPM and work through the question together in their next meeting tomorrow.

On July 15, 2025, Saumya and Ruan discussed dividend discount models (DDM) for corporate finance. Saumya explained the constant growth DDM, two-stage DDM, and how to calculate the implied cost of equity (RE) using the Gordon Growth Model. They worked through examples, including calculating present value using two-stage growth and determining RE given dividend information. Ruan provided practice exam papers.