...Free Cash Flow and Terminal Value In the five years forecast period, explicit forecasts of free cash flow have been developed which has incorporated the economic costs and benefits of the transaction. The free cash flows for every year have been computed as below: Financial year | 2007 | 2008 | 2009 | 2010 | 2011 | EBIT (1-t) | 3,493,872,000 | 3,817,923,716 | 3,893,347,321 | 3,973,492,338 | 3,717,433,629 | (+) Depreciation &Amortization | 677,400,000 | 722,491,029 | 767,829,605 | 817964484.00 | 871,026,457 | (-) Change in Working Capital | 84,900,000 | 1,077,399,436 | 256,797,313 | 331,501,470 | 330,512,163 | (-) Capital Expenditure | 990,500,000 | 1,101,859,969 | 1,234,083,166 | 1,382,173,145 | 1,534,212,191 | Free Cash Flow of Firm | 3,095,872,000 | 2,361,155,340 | 3,170,296,447 | 3,077,782,207 | 2,723,735,732 | The value of the company derived from free cash flows occurring after the forecast period was captured by a terminal value. Terminal value is estimated in the last year of the forecast period and capitalizes the present value of all future cash flows beyond the forecast period. To estimate the terminal value, cash flows are projected under a steady state assumption that the firm enjoys no opportunities for abnormal growth or that expected returns equal the required returns following the forecast period following the forecast period. In determining the terminal value, the adjusted cost of capital of 8.36% was first calculated as below...
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...Kim and Mauborgne’s (2004) article explain that a vast majority of companies focus on stating in the “red ocean” as they are fighting over customers in the same market share. This author explains the reason behind this is that most companies use “competition-based red ocean strategies which has also seen them cut cost and take market share from rivalry competitors. As oppose to focusing on the “ red ocean” Kim and Mauborgne (2004) mention company’s need to begin shifting toward the “blue ocean” if they want to succeed. This can be achieved by offering differentiated products or services; it too can be achieved through reaching out and attracting a different target market. By doing this the author states that they will be moving into an “untapped market space” from this the companies will seek new opportunities and ultimately become more profitable. Companies that have utilized this model and been successful or Cirque du Soleil, both of these company’s have been able to expand because they offer a different value proposition to their customers. By using the blue ocean strategy it meant to enable the company to put more of an emphasis on focusing on the bigger picture, then having an immediate return on investment. In relation to Mikes Bikes we are currently competing in a “red ocean”, as there is high competition since each team are selling similar products, we are also faced with the same opportunities within the market. Furthermore everyone has a mutual vision of wanting...
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...Stephanie Figueroa Teresa Massimo Speech 101 20 September 2011 Three Speech Outline Intro; “ It’s the game of life. Do I win or do I lose? One day they’re gonna shut the game down, I gotta have as much fun and go around the board as many times as I can before it’s my turn to leave”, these are the words that the famous rapper and poet, Tupac Shakur once said. He’s referring to life as a game and that we all have to make the best of. As a child everyone has dreams whether its something as realistic as becoming a teacher to something so unrealistic such as living in Narnia. Making the best of life is what I try doing, dreams that money can buy most importantly. My dreams and goals before I die are to build a home for a needy family in Mexico, having a big family and my last is to take my parents on a trip to another country. Yeah I know what your thinking just another bucket list, but this is a bucket list with realistic ideas that I plan to take with me on his stroll of life. Body; The feeling of giving and getting happiness in return is one of the best feelings of life. My biggest goal is to build a home for a poor family in Mexico. Mexico itself is a corrupted country with a high rate in poverty. Speaking from experience that I have visited Mexico and hearing the struggles my parents went through growing up in Mexico make me realize how much luck has to do with growing up. When I visit Mexico, one of my aunts lives in the poverty area, seeing how they barely have doors...
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...Abstract There are more differences in how the NYSE and NASDAQ operate than similarities. NYSE operates at a physical address while the NASDAQ takes place on a very complex telecommunications system of buyers and sellers. With all the buy and selling the buying and selling taking place, investors can be misled into an investment that will profit only the seller and leave the buyer broke. The Sarbanes-Oxley Act has been put in place to protect both buyers and sellers from unethical practices. NYSE & NASDAQ The New York Stock Exchange (NYSE) and NASDAQ are places where equities are exchanged between buyers and sells on the stock market. They both are major exchanges that trade a major portion of equities in North America and Worldwide. Both are very different in how they operate and trade equities. The location of these two stock exchanges doesn’t refer to a address but more of a “place” for trading. NYSE’s transaction occurs at a physical address on the trading floor in New York City and the NASDAQ isn’t located at a physical address on a trading floor. NASDAQ is on a telecommunications network where transactions between sellers and buyers take place on an elaborate system of companies connected electronically to each other (The NYSE And NASDAQ: How They Work, 2013). Another difference is the NASDAQ is a market where buyers and sellers are not making transactions with each other directly but through a dealer and the...
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...The Economy During The Recent Recession Joanne Cartier Mr. Fant ECO 100 March 15, 2013 A recession is defined as a decline in a country’s GDP (gross domestic product) or when the economic growth in negative, two or more consecutive quarters. The state of the economy during the most recent recession was the worst since the Great Depression. In 2008-2009, the economy decreased within five quarters, including four quarters consecutively. Two quarters showed a decrease more than 5% and Q2 in 2008 dropped 8.9%. This was the lowest drop in a recession since the Great Depression. In Q3 2009, the recent recession ended, because of economic stimulus spending. The recent recession was the longest since the Depression, lasting 18 months. The recession officially started in late 2007 to mid-2009. The Economic Security Index determined the impact of the recession by developing a measurement tool based on government economic data. The tool showed that due to the decline in income, increase in medical spending or both, Americans experienced a financial loss of 25 percent or greater. Southern states showed the worst economic losses from 2008-2010. Researchers found various reasons linked to these states hardship such as, poverty rates, the amount college graduates and unemployment rates. During the last recession, the national unemployment rate was at 5.0 percent making it the lowest in 2.5 years. From December 2007- June 2009, employment decline was the greatest of any...
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...The Causes and Effects of Doping in Sport Hou Juin Yew, Calvin B1201067 HELP University Outline I. Introduction A. Opener : The history of doping in sports B. Thesis statement: There are few causes that is undergone family problems, huge amount of debts, cope with a live of stress and face a lot of pain during training and few effects that lead in to problems in body function and mental effects. II. The causes of why athletes dope in sports. A. Family problems B. Huge amount of debts C. Live of stress D. A lot of pain in training III. The effect in the body function of a person when a person dope in sport. A. The uses of steroid in sports 1. The diseases when dope in sports 2. The body function of a person B. The uses of stimulants in sports 1. The type of drugs and the problems C. The uses of peptide hormones 1. Type of peptide hormone and the effects of the substances IV. The effect in the mental problems A. The type of disease that effect the mental problems V. Conclusions The Causes and Effects of Doping in Sport Doping in sport is means the use of drug to increase the performance of an athletic above average in an athletic competition...
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...Introduction The discussions surrounding the advantages and disadvantages of investing in employee training are a common place in literature across multiple disciplines (McDermott & Keating, 2011). Perspectives on providing employee training vary but there is consensus regarding the benefits companies receive from equipping employees with the tools needed to perform in their designated roles as well as improve their skills (Heyes & Stuart, 1996). Workplace motivation is explicitly linked to training and career advancement opportunities provided by employers (Delaney & Heselid, 1996). As such companies ought to look at providing work related training that promotes a positive environment in which the employees are eager to work. Additionally, increasing employee competences creates a company culture that boosts employee morale and aids in employee retention (Brown, 2007). These strategies in turn can have significant impact on organization reputation and profitability as the nature of the reputation will influence the way in which consumers, competitors, and even employees, interact with the organization (Clardy, 2005). Many organizations’, whose focus is primarily the bottom line, make the assumption that the employee only has a financial incentive for working with them and as such they neglect to provide training that will enhance job satisfaction or careers (Jehanzeb, Rasheed, & Rasheed, 2013). They fail to take into account that the lack of skills may render the employee...
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...train, reward, manage disputes with and separate from employees as well as the more extensive relationship between employers and employees (Ram, 1999: 604). Being the main vehicle that employees gain access to their employment rights and benefits associated with social security and labour law, as well as the determinant of the scope and structure of employers’ authorities towards their employees (ILO, 2011), obligations and reciprocal rights between employee and employer are constructed via employment relationships. Looking into this fast-growing economy with ever changing industries, there is no doubt that SMEs have navigated a devastating economic terrain and have been a bastion against the overwhelming consequenses of the global finiancial crisis in recent years. Despite that there are over 21.8 million of SMEs which accounted 99.8% of all businesses active in the EU28 (see figure 1), which perform the role of driving economic growth, social integration, as...
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...PARENTS Definitions Parents: Two people who provide the needs and wants of a child in order to increase their wellbeing. TYPES OF PARENTS 1/2. Biological: When the mother and child are genetically related Why become parents??? 2/2. Social Parents: Two non-genetically related people assist in nurturing the child through their formative years, when the biological parents may be unable to. CARER RELATIONSHIPS Definiton Carer: -Someone who assists in satisfying their needs of individuals who alone cannot -They may voluntary or paid Definitions cont.d… Primary Carer: ‘An individual who has the main responsibility for care of another to help them satisfy their needs by enabling them to interact more successfully with their near environment. Self-Care: Provinding personal care such as showering, dressing,eating Mobolity Care: Assisting people to move outside or in the home.eg. From bed to chair Communication Carer: usually care related to verbal communication in helping a person understand or be understood. Eg. Deaf and blind, instances when such care is required CARERS MAY OR MAY NOT LIVE IN THE HOUSEHOLD ...
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...BACKGROUND Thе currеnt rеport focusеs on mеdical еrrors in gеnеral, and morе spеcifically, medication errors. This problеm has a long history in hеalthcarе. As long as humans havе bееn in chargе of thе procеss of giving patiеnts mеdications, thе systеm has bееn pronе to human еrror. This is a complicatеd issuе bеcausе thеrе is always going to bе thе еlеmеnt of systеmic еrror in thе hеalthcarе еnvironmеnt. No tеchnologically sophisticatеd program rеally sееms to havе solvеd and totally еliminatеd thе problеm of pеrsistеnt mеdical еrrors. Thеrеforе, it is important to addrеss thе issuе bеcausе of its prеvalеncе and its pеrsistеncе. “A nеw rеport from thе U.S. Pharmacopеia (USP) rеvеals that hospital mеdication еrrors may bе on thе incrеasе dеspitе еfforts to combat thе problеm. Thе study also found that hospitalizеd patiеnts ovеr agе 65 arе twicе as likеly to bе harmеd by an еrror, accounting for half of all еrror-rеlatеd dеaths. Thе rеport is basеd on an analysis of mеdication еrrors submittеd to thе USP's tracking systеm” (Dalе, 2003). What is frightening is these are only the reported errors. This particular pеrspеctivе contradicts thе initial assumption that mortality ratеs in casеs of mеdication errors arе rеlativеly low whеn comparеd to othеr mеdical mistakеs. Although somе instancеs of еrror arе fatal and othеrs arе non-fatal, it is important to focus on outcomеs as wеll as root causе analysis. Mеdication and mеdical еrrors arе oftеn sеntinеl еvеnts...
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...Chap 9- Bilateral contract- a contract entered into by way of exchange of promises of the parties a promise for a promise. Unilateral -a contract in which the offerors offer can be accepted only by the performance of an act by the offeree a promise for an act. Implied in law contract (quasi)-an equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed. The doctrine is intended to prevent unjust enrichment and unjust detriment. Implied in fact contract- a contract where agreement between parties has been inferred from their conduct. Objective theory of contracts- a theory that says the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties. Executory-a contract that has not been fully performed. With court approval executory contracts may be rejected by a debtor in bankruptcy. Cases-City of Everett vs Mitchells- Mitchells buy safe for $50 and take to lock smith and find money. City commenced and interpleader action against the sumstad estate and the mitchells. State supreme court held that under the objective theory of contracts a contract was formed between the seller and the buyer courts rules in favor of mitchells. Dines vs Liberty mutual incurance- police recovered stolen car that belonged to liberty and stored it in dines towing facility. Liberty found out it was there but did not take it out. Dines wrote letter...
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