Reasons for disinvestments: Financial Reasons 1. Cash related – a. Need for cash - for better reinvestment opportunities b. Voluntary liquidation to avoiding any substantial investments need to run the business on a profitable and sustainable business 2. Performance related – c. Unsatisfactory profit level on assets being divested d. Selling off assets and fringe activities to focus efforts on core competencies e. Rationalization of resources to achieve
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Spreadsheet file: Available Donaldson, Lufkin & Jenrette 1995 (Abridged) 1. Why is Equitable considering selling an interest in DLJ? 2. What are the relative advantages and disadvantages of carve-outs, spin-offs and divestiture through cash sale? 3. What is your estimate of DLJ's fair value per share? In answering this question, please draw upon as many valuation approaches as you can. Give special attention to the valuation multiples of DLJ’s peers. Who are these peers? Why do they
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investment project is most likely to be accepted by the payback period rule and not accepted by the NPV rule if the project has a) b) c) d) e) a large initial investment with moderate positive cash flows over a very long period of time. a very large negative cash flow at the termination of the project. most of the cash flows at the beginning of the project. all projects approved by the payback period rule will be accepted by the NPV rule. The payback period rule and the NPV rule cannot be used to evaluate
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Facts However, in 2009 revenues declined to $4.5 million along with net cash flows from all activities declining in 2009 as well. Overall capital expenditures for the company have been continually increasing by 26% each year. Milton had planned on borrowing $20 million in the fourth quarter of 2010 from the credit markets. In 2010, current cash flow is expected to increase due to higher projections of revenue and cash collections from the business—and therefore selling and producing more products
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La’Kesha Wright HCS/405 10/01/2012 Sherida Douglass Introduction Good cash flow is essential to every organization, including hospitals, where quality care of every patient is essential. A steady and consistent cash flow can help improve the hospitals borrowing power, which will increase and maintain the income level. Capital Shortage My challenge was to decide on the best strategy to solve the cash flow problem at Elijah Heart Center (EHC). In addition, I had to implement two measures
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I do not feel comfortable with most of the material learned. Like preparing a statement of cash flows and analysis of company’s financial statements. I do feel somewhat comfortable with understanding the difference of common and preferred stock, but not entries. I do not feel comfortable with most of the material learned. Like preparing a statement of cash flows and analysis of company’s financial statements. I do feel somewhat comfortable with understanding the difference of common and preferred
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GUIDE ON VALUATION OF TECHNOLOGY Guide on Valuation of Technology TABLE OF CONTENTS 1.0 INTRODUCTION 1.1 1.2 1.3 1.4 DEFINITION OF TECHNOLOGY ROLE OF TECHNOLOGY OPEN INNOVATION STRATEGIC ALLIANCES 3 3 3 3 4 2.0 VALUATION OF TECHNOLOGY 5 3.0 VALUATION METHODS 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 TWENTY-FIVE PERCENT (25%) RULE INCOME TECHNIQUE MARKET APPROACH COST METHOD RELIEF FROM ROYALTY TECHNOLOGY FACTOR APPROACH CAPITALIZATION APPROACH REAL OPTIONS METHOD 5 6 6 7 7
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Present Worth (PW) Analysis Objective: To evaluate and compare mutually exclusive alternatives based on the equivalent netpresent worth of the lifecycle cash flows for each alternative at a given minimum attractive rate of return (MARR). • The net present worth is computed as Net PW = PW(Revenues) – PW(Costs) • The cash flows include all life-cycle revenues and costs, i.e., all revenues and costs over the service life of the project or investment. • A zero or positive “Net PW” indicates
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analytical review include: Actual financial results compared to budgeted or projected figures compiled before that accounting period. How do actual results compare to management estimates before the accounting period? 9. What do the statements of cash flows and changes in equity indicate regarding the strengths and weaknesses of each company’s financial performance and position? The below financial statements provide information on the financial activities of Virgin and Qantas. Much like the performance
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Who are we? The investment proposal that we would like to start is about a full-fledged store for men. All around the country, there are many stores that cater to the needs of women specifically, right from their clothing to cosmetic needs, but there is unfortunately no such store yet in Bangladesh dedicated especially for men. Yes, there are clothing stores, shoe stores, fitness stores, all present individually, but there are no such stores that can give away everything that that a man might
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