...AB Bank Limited BCIC Bhaban 30-31 Dilkusha Commercial Area Dhaka 1000 AB Bank Limited _____________________ Auditors’ report and consolidated financial statements for the year ended 31 December 2011 S. F. AHMED & CO Chartered Accountants House 25, Road 13A, Block D, Banani, Dhaka 1213, Bangladesh Telephones (880-2): PABX 989-4346 & 989-4258 Others 881-6467 & 881-5101 Fax (880-2): 882-5135 E-mails: (i) sfaco@citechco.net (ii) sfaco@sfahmedco.org Website: www.sfahmedco.org Auditors’ Report to the Shareholders of AB Bank Limited We have audited the accompanying consolidated financial statements of AB Bank Limited (“the Bank”) and its subsidiaries, namely, AB Investment Limited, AB Securities Limited, Cashlink Bangladesh Limited, AB International Finance Limited and AB Exchange (UK) Limited which comprise Consolidated Balance Sheet at 31 December 2011 and Consolidated Profit and Loss Statement, Consolidated Cash Flow Statement, Consolidated Statement of Changes in Equity and Liquidity Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management is responsible for the preparation and fair presentation of these financial statements in accordance with Bangladesh Financial Reporting Standards, and for such internal control as management considers necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud and error...
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...CRAB Rating Scale CRAB Long Term Rating Scale CRAB Short Term Rating Scale CRAB Long Term Rating Scale Rating Methodologies: It’s different for several sectors. Such as several methodologies for bank rating, financial institution rating, corporate rating, general insurance rating, life insurance rating, government owned enterprise rating and securitization rating. Other services: 1. Grading Services 2. Advisory & Consulting Services 3. Information Service National Credit Ratings Ltd National Credit Ratings Limited (NCR) is a credit rating agency in Bangladesh. It was incorporated as a public limited company under the Registrar of Joint Stock Companies in August 2010 and received its certificate for commencement of business in July 2010. It was granted a licence by the Securities & Exchange Commission (SEC) of Bangladesh for operating as a credit rating company in September 2010. The formal launching of the company was held on 18 October 2010. Managing director & CEO: MD. Momin Ullah Patwary, BP, is a former secretary to the Govt. of Bangladesh. Services: The services provide by the agency are followings: Entity Rating, Instrument Rating, Insurance Company rating, Asset Manager Rating, Sectoral Grading and Ranking. Methodology A true and fair opinion is our responsibility. NCR gives opinion as to the ability of an entity to meet its financial obligations. The rating process primarily concentrates on business and financial risks...
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...Grantham University Final Exam Chapter 2 Problem 2-4, Pearson Brothers recently reported an EBITDA (Earnings before interest, taxes, depreciation, and amortization) of $7.5 million and net income of $1.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? (income statement) The taxable income would be 7.5 less 2 million less depreciation and amortization. $5.5m - $1.8m is the total available to pay taxes and depreciation. $370,000 to pay depreciation and taxes. 3.7-Depreciation =(5.5-Depreciation)*40% 3.7-2.5=(5.5-2.5)*40% (2.0)*40%=1.2 $2,500.000 Depreciation & Amortization Problem 2-7, The Talley Corporation had a taxable income of $365,000 from operations after all operating costs but before (1) interest charges of $50,000, (2) dividends received of $15,000, (3) dividends paid of $25,000, and (4) income taxes. What are the firm’s income tax liability and its after-tax income? What are the company’s marginal and average tax rates on taxable income? (Corporate Tax Liability) Income $365,000 Less Interest deduction (50,000) Plus: Dividends received 4,500 Taxable income $319,500 70% of dividends received are excluded from taxes = $15,000(1 - 0.70) = $4,500 Tax = $22,250 + ($319,500 - $100,000)*0.39 Tax= $22,250 + $85,605 = $107,855 Marginal tax rate is 39 percent Average tax rate is $107,855/$319...
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...Valuing Coca-Cola Using The Free Cash Flow To Equity Valuation Model John C. Gardner, University of New Orleans, USA Carl B. McGowan, Jr., Norfolk State University, USA Susan E. Moeller, Eastern Michigan University, USA ABSTRACT In this paper, we provide a detailed example of applying the free cash flow to equity valuation model proposed in Damodaran (2006). Damodaran (2006) argues that the value of a stock is the discounted present value of the future free cash flow to equity discounted at the cost of equity. We combine the free cash flow to equity model with the super-normal growth model to determine the current value of Coca-Cola. At the time of this paper, we determined a value of Coca-Cola at $161 billion using the free cash flow to equity model, and the actual market value of Coca-Cola was $150 billion. Keywords: Coca-Cola; Free Cash Flow to Equity; Equity Valuation; Super-normal Growth Model CORPORATE FINANCIAL MANAGEMENT AND STOCK VALUATION C orporate financial management encompasses the efficient acquisition and allocation of funds. The objective of corporate financial management is to maximize the value of the firm. Solomon (1963, page 22, Chapter II) argues that wealth maximization should be the goal of corporate financial management because this criterion maximizes the wealth of the owners of corporations and maximizes the wealth of a society by maximizing economic output. The value of the firm is measured by the market capitalization of the firm. The...
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...Formulae Final Examination Financial Accounting and Financial Statement Analysis l Equity Valuation and Analysis l Corporate Finance l Economics Table of Contents 1. Financial Accounting and Financial Statement Analysis 1.1 Generally Accepted Accounting Principles: Assets, Liabilities and 1 Shareholders’ Equities ......................................................................................... 1 1.1.1 1.2.1 1.3.1 1.3.2 1.3.3 Assets: Recognition, Valuation and Classification....................................... 1 Earning per Share ......................................................................................... 1 Profitability Analysis ..................................................................................... 2 Risk Analysis ................................................................................................ 5 Break-Even Analysis .................................................................................... 6 1.2 Financial Reporting and Financial Statement Analysis ...................................... 1 1.3 Analytical tools for Assessing Profitability and Risk......................................... 2 2. Equity Valuation and Analysis 2.1.1 2.1.2 2.1.3 7 2.1 Valuation Model of Common Stock .................................................................... 7 Dividend Discount Model............................................................................. 7 Free Cash Flow Model...
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...Powered by TCPDF (www.tcpdf.org) OLIN BUSINESS SCHOOL Summer 2015 Advanced Corporate Finance IIIFrontiers of Valuation B62 FIN 534C Professor Todd Milbourn B62 MGT 534C Advanced Corporate Finance III – Frontiers of Valuation Summer 2015 Professor Todd Milbourn The Olin Business School Table of Contents 1. Valmont Industries HBP Case # UVA-F-1191 ............................................................................... 1 2. Super Project HBP Case # 9-112-034 ........................................................................................... 21 3. Calaveras Vineyards HBP Case # UVA-F-1094 ........................................................................... 37 4. Paginas Amarelas HBP Case # UVA-F-1210 ............................................................................... 63 5. Using Crystal Ball HBP Case # UVA-QA-0561 .......................................................................... 89 6. Valuation in Emerging Markets HBP Case # UVA-F-1455 ......................................................... 95 7. Project Valuation in Emerging Markets HBP Case # 9-702-077 ............................................... 113 8. Valuing Companies in Corporate Restructurings HBP Case # 9-201-073 ................................. 131 UVA-F-1191 Rev. Feb. 1, 2011 VALMONT INDUSTRI V IES, INC. Forty years ago, we made our fi F m irst center p pivot irriga ation system It was m. es ssentially a long steel pipe...
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...Letter of Transmittal: May 02, 2011. Md. Serajur Rasul Assistant Professor Dept. of Management Studies University of jagannath. Subject: Submission of the Report on Problems & prospects of Capital market of Bangladesh. Dear Sir, With due respect, it is a great pleasure to me submitting my report. The topic of the report is “Problems & prospects of Capital market of Bangladesh”. I have collected various important information about this. I sincerely believe that you would find the report very interesting, informative and elucidating. I, therefore, hope that you would kindly accept this report and oblige thereby. With thanks and best regards. Sincerely yours, Chittra Kundu B.B.A (4th batch) Section: B Roll no.: 07882559 Session: 2007-08 Department of Management Studies University of Jagannath Acknowledgement All praises and thanks to omnipotent creator for enabling me to complete my report with good health and sound mind. At this point, I would like to acknowledge some of the persons who have made a major contribution to its preparation. At first I would like to thank our honorable course teacher Mr. Md. Serajur Rasul, assistant professor of Management Studies, Jagannath University who assigned me to prepare such important report. I also like to thank to our Lab operator, Department of Management studies, seminar & library authority for making cordial co-operation by serving about internet & necessary Books when I asked them...
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...Capital Market the market, or realistically, the group of interrelated markets, in which capital in financial form is lent or borrowed for medium and long term and, in cases such as equities, for unspecified periods. The capital markets, in distinction from other parts of the financial market ie, the money markets, are those for long-term government securities, corporate bonds, stocks, municipal bonds issued by state and local government units, and mortgages. industry and commerce as well as government and local authorities raise capital from the capital market which performs several important functions in the process of economic development. Most important among them are the promotion of savings and investment and efficient allocation of funds among competing uses. Participants in the capital markets are many. They include the commercial banks, saving and loan associations, credit unions, mutual saving banks, finance houses, finance companies, merchant bankers, discount houses, venture capital companies, leasing companies, investment banks, investment companies, investment clubs, pension funds, stock exchanges, security companies, underwriters, portfolio-managers, and insurance companies. Capital market in Bengal was founded during the Mughal regime in the early 17th century. Although in a limited scale, there were money and capital market activities in Suba-e-Bangala throughout the 17th century. Bengal under the nawabs was fairly developed in trade and communication. An historian...
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...The Boeing Company 2010 Annual Report At Boeing, we aspire to be the strongest, best and best-integrated aerospace-based company in the world — for today and tomorrow. The Boeing Company Boeing is the world’s largest aerospace company and leading manufacturer of commercial airplanes and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in more than 90 countries. Our products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. With corporate offices in Chicago, Boeing employs more than 160,000 people across the United States and in 70 countries. Our leadership is strengthened further by hundreds of thousands of people who work for Boeing suppliers worldwide. Contents Operational Summary Message From Our Chairman The Executive Council Financial Results Form 10-K Selected Programs, Products and Services Shareholder Information Board of Directors Company Officers 1 2 7 8 9 134 141 142 142 Cover photo: 787 Dreamliner in flight test Photo above: F/A-18E/F Super Hornet strength Operational Summary Q Earned net income of $3.3 billion, or $4.46 per share, compared with $1.3 billion, or $1.87 per share, in 2009. Q Delivered 115 production military aircraft, two launch vehicles and four satellites, and increased backlog...
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...Adventures in Debentures c Copyright ⃝ 2004 by Michael R. Gibbons Adventures in Debentures we can solve for y to obtain Solutions to The Grammar of Fixed Income Securities 1. Part Part Part Part Part Part a. b. c. d. e. f. $100/(1.20)3 = $57.87. $100/(2)3 = $12.50. $100/(1)3 = $100. $100/(1.10)6 = $56.45. $100/(1.05)12 = $55.68. $100/e.20×3 = $54.88. y= So yB = and yA = 2nLN nSN 1 + c/2 −1 . P/100 2 · 184 1 + .09125/2 − 1 = 2.991185% 105 103.6776495/100 2 · 184 1 + .09125/2 − 1 = 2.778233% . 105 103.7401495/100 2. Remember we are trying to find r such that the growth in our initial investment is the ˙ same as the growth from an alternative investment providing a rate of r(m). That is, find r ˙ Part a. Part b. Part c. Part d. ˙ ˙ such that er = (1 + r(m)/m)m so r = m ln(1 + r(m)/m). m = 1: ln(1.04) = 3.922%. m = 1: ln(1.20) = 18.232%. m = 4: 4 ln(1.05) = 19.516%. m = 1: ln(2) = 69.315%. In addition, we have Part b. Ignoring for the moment any restrictions on lot size, we note that a cash flow of $100 to be received on 12/31/92 and purchased on 9/17/92 is available either in the form of $100 par amount of the 12/31/92 bill or in the form of $100/(1+.09125/2) par amount of the 9 1/8’s of 12/31/92. (Indeed, since $100 par of the 9 1/8’s will pay off $(100 + 9.125/2) on 12/31/92, $100/(1 + .09125/2) par amount of the 9 1/8’s will pay off $100.) Can we buy this cash flow low through one instrument and sell it high through the other? We must see if the asked price of one of the...
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...All CFA Institute members and candidates are required to comply with the Code and Standards Basic structure for enforcing the Code and Standards The CFA Institute Bylaws primary principles Based on two Fair process to member and candidate Confidentiality of proceedings Rules of Procedure Maintains oversight and responsibility The CFA Institute Board of Governors Through the Disciplinary Review Committee (DRC) Is responsible for the enforcement of the Code and Standards Conducts professional conduct inquiries Structure of the CFA Institute Professional Conduct Program Professional Conduct program (PCP) The CFA Designated Officer Selfdisclosure An inquiry can be prompted by several circumstances Directs professional conduct staff Written complaints Evidence of misconduct Report by a CFA exam proctor jim do Interviewing The Professional Conduct staff conducts an investigation that may include cf a. 1. Code Of Ethics And Standards Of Professional Conduct Collecting documents and records in support of its investigation Conclude the inquiry with no disciplinary sanction Issue a cautionary letter If finding that a violation of the Code and Standards occurred, the Designated Officer proposes a disciplinary sanction ay to Process for the enforcement of the Code and Standards When an inquiry is initiated Upon reviewing the material obtained during the investigation, the Designated Officer may .c Requesting a written explanation from the...
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...GUIDE FOR STUDENTS // 2014 CONTENTS 02 INTRODUCTION 03 BLOOMBERG TERMINAL 03 The Bloomberg Keyboard 03 Helpful Keys 04 Accessing The Application 05 Logging In 06 Bloomberg Panels 07 FUNCTIONS & SECURITIES 07 Running Functions 08 Working With Securities 10 NAVIGATION 10 Basic search (Autocomplete) 11 Full Search 12 Browsing Menus 13 PERFORMING ANALYSIS 13 Navigating Functions 14 Stock/Company Screening 15 Analyzing a Company 16 Analyzing an Index, Bond or Currency 17 EXPORTING DATA 17 The Bloomberg Excel Add-In 20 Drag & Drop 20 Printing & Other Export Options 20 GETTING HELP & LEARNING MORE 22 APPENDIX 22 Equity 22 Fundamental Analysis 23 Analytics 24 M&A Analysis 24 Fixed Income 26 Swaps 27 Money Markets 28 Structured Finance Analytics 29 Price Discovery 29 Analytics 29 Descriptive 30 Relative Value 30 Ticketing 30 Hedging 30 Additional Fixed-Income Functions 32 FI Futures & Options 33 Repo Analysis Data 33 CALCULATORS 33 High Yield/Syndicated Loans/ Distressed Research 34 Municipal Bonds INTRODUCTION For more than 20 years, Bloomberg has been committed to helping universities and colleges incorporate the Bloomberg Professional® service into their academic programs to better prepare students for the global job market. Universities and colleges around the globe use Bloomberg to bring the real world of finance into the classroom, providing students with access to the same information platform used by leading decision makers in business, finance and...
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...GUIDE FOR STUDENTS // FEbRUaRy 2012 CONTENTS>>>>>>>>>> 02 bLOOMbERG TERMINaL® 02 The bloomberg Keyboard 03 accessing the application 04 Logging In 05 bloomberg Panels 06 FUNCTIONS & SECURITIES 06 Running Functions 07 Working with Securities 09 basic Search (autocomplete) 10 Full Search 11 browsing Menus 09 NavIGaTION 12 PERFORMING aNaLySIS 12 Navigating Functions 13 Stock/Company Screening 14 analyzing a Company 15 analyzing an Index, bond or Currency 16 ExPORTING DaTa 16 The bloomberg Excel add-In 19 Drag & Drop 19 Printing and Other Export Options 20 GETTING HELP aND LEaRNING MORE CONTENTS>>>>>>>>>> 21 aPPENDIx 21 Equity 21 Fundamental analysis 22 analytics 23 M&a analysis 23 Fixed Income 25 Swaps 26 Money Markets 27 Structured Finance analytics 28 Price Discovery 29 analytics 29 Descriptive 29 Relative value 29 Ticketing 29 Hedging 30 additional FI Functions 31 FI Futures and Options 32 Repo analysis Data 32 Calculators 33 High yield/Syndicated Loans/Distressed Research 34 Municipal bonds INTRODUCTION For more than 20 years, bloomberg has been committed to helping universities and colleges incorporate the bLOOMbERG PROFESSIONaL® service into their academic programs to better prepare students for the global job market. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Universities and colleges around the globe use Bloomberg to bring the real world of finance into the classroom, providing students with access to the same information platform...
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...MANAGEMENT OF WORKING CAPITAL 1. Meaning and Types of Finance: Finance - Finance is the Art & Science of Managing Money - Finance is the Art of passing currency from hand to hand until it finally disappears Types & Sources of Finance ____________________________________________________________ ________ Long Term Sources of Finance - Finance required to meet Capital Expenditure - Also, known as Fixed Capital Finance Short Term Sources of Finance - Finance required to meet day-to-day Business requirements - Also, known as Working Capital Finance 2. Working Capital Management: Working Capital (WC) ____________________________________________________________ ____________________________ Basics regarding WC Meaning of WC Working Capital Concept Factors Affecting WC Meaning of WC Management Importance of WC Management Classification/Type of WC A On the Basis of Concept (i) (ii) Gross Working Capital Net Working Capital (Positive & Negative Working Capital) Methods of estimating WC Conventional Method Operating Cycle Method Cash Cost Method Balance Sheet Method B On the Basis of Periodicity (i) (ii) Fixed / Permanent Working Capital (Regular & Reserve Margin/ Cushion WC) Variable Working Capital (Seasonal & Special Working Capital) Parag Nalin Doshi 1/12/2009 www.CAalley.com Meaning of Working Capital: - Working Capital is the amount of Capital that a Business has available to meet the day-to-day cash requirements of its operations - Working...
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... The firm has offices in major international financial centers and provides mergers and acquisitions advice, underwriting services, asset management, and prime brokerage to its clients, which include corporations, governments and individuals. The firm also engages in proprietary trading and private equity deals and is a primary dealer in the United States Treasury security market. On September 21, 2008, Goldman Sachs and Morgan Stanley, the last two major investment banks in the United States, both confirmed that they would become traditional bank holding companies, bringing an end to the era of investment banking on Wall Street. Despite the 2007 subprime mortgage crisis, Goldman was able to profit from the collapse in subprime mortgage bonds in the summer of 2007 by short-selling subprime mortgage-backed securities. The firm initially avoided large subprime write downs, and achieved a net profit due to significant losses on non-prime securitized loans being offset by gains on short mortgage positions. In the early 20th century, Goldman was a player in establishing the initial public offering (IPO) market. It managed one of the largest IPOs to date, that of Sears, Roebuck and Company in 1906. It also became one of the first companies to heavily recruit those with MBA degrees...
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