technology advancement, and a larger distribution channel. That being said, Mr. Liedtke needs to figure out an estimated valuation for an expected bid offer. The valuation techniques that can be used for the acquisition of MA is the discounted cash flow (DCF) method while also looking at comparable metric ratios across the industry. Some comparable metrics that Lietdke could analyze for MA to compare across the industry are P/E, EV/EBIT, and EV/EBITDA. Lietdke should also be aware of potential problems
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valuation, techniques of financial analysis, cost of capital, free cash flow estimation, risk analysis, real options, and current financial issues. Students will be given three hours to analyze and write up their answers to the following questions (percentages indicate the grading importance of the item): (1)Prepare an executive summary to sum up analytical results and recommendation. (10%) (2) Review the projections formulated by Liedtke. Are they appropriate? How would you recommend
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NETFLIX.COM, INC: EXPECTED CASH FLOWS - 2000 NETFLIX.COM, INC: EXPECTED CASH FLOWS - 2000 EXECUTIVE SUMMARY Barry McCarthy, the chief financial officer of NetFlix.com, Inc. (NetFlix), has been asked by the company’s chairman and CEO, Reed Hastings, to re-evaluate NetFlix’s business model in preparation of its upcoming initial public offering (IPO). NASDAQ Composite Index has fallen 25% and many other internet companies have been forced to withdraw their
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Komprehensif Konsolidasian 3 Consolidated Statements of Comprehensive Income Laporan Perubahan Ekuitas Konsolidasian 4 Consolidated Statements of Changes in Equity Laporan Arus Kas Konsolidasian 5 Consolidated Statements of Cash Flows Catatan Atas Laporan Keuangan Konsolidasian 6 Notes to the Consolidated Financial Statements R-1/079.AGA-S/4.1/2011 PT ADHI KARYA (Persero) Tbk DAN ENTITAS ANAK LAPORAN POSISI KEUANGAN KONSOLIDASIAN PT ADHI KARYA (Persero)
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Project Process Management (MSPM - 6120 - 2) Week 2 Application Spring Session Section B March 12, 2012 Abstract Theoretically, cost modeling is a set of assumptions about future project conditions that guide the projects for organizations of cash flows (Sanghera, 2010). Financial models that are utilized in project finance oft-times are troubled with diverse array problems. The reason for failure in projects is mainly due to not clearly defining and segregating various elements of the model;
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techniques and keeping track of company’s cash flows is something that cannot be overlooked. Keeping track of the cash flow is important because businesses aren’t realistic when it comes to predicting their income and expenses (they overestimate their income and underestimate their expenses), and companies don’t see a cash shortage coming and they run out of money. Being able to project where your new enterprise is heading financially can help you to prepare for cash shortages and once prepared it allows
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Sampa Video Solution Discussion Sampa Video Case This case is useful for illustrating how we do NPV analysis when cash flows are risky, illustrating the idea of a terminal value, and also for thinking about what kinds of advantages make for positive NPV projects. The case discusses Sampa Video, the second largest chain of video rental stores in the greater Boston area, and their consideration of an expansion into an online market. What we have to do is evaluate the decision. Sampa Video –
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because the acquisition could save AirThread more than 20% in backhaul costs. The reasons above make us believe that the synergy is positive and the acquisition is a good idea. Based on the projected cash flow information provided in the case, what is the stand- alone value of AirThread? Show the cash flow forecasts, discount rate, and your valuation model. (Hint: pay attention to the Working Capital Assumptions provided in Ex 1. For example, Accounts Receivable 41.67× means on average it takes 41.67
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Calculating and Interpreting Beta Introduction: In 1990, William Sharpe won a Nobel Prize in Economics for his work in developing the Capital Asset Pricing Model (CAPM). Traditionally the CAPM has been the basis for calculating the required return to the shareholder. This figure in turn has been used to calculate the economic value of the stock and the Weighted Average Cost of Capital (WACC) for capital budgeting. In recent years, the CAPM has been attacked as an incomplete model for explaining
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Brian's Book Barn Sample Business Plan (Retail) Canada / British Columbia Business Services Society 601 West Cordova Street Vancouver BC V6B 1G1 Phone: 604-775-5525 In BC: 1- 800- 667-2272 http://www.smallbusinessbc.ca Fax: 604-775-5520 Sample Plan Business Plan for the period Starting May 1998 Executive Summary Business Description Brian's Book Barn is a new retail business venture due to begin operations on June 1, 1997. The business is a book and magazine store intended to serve the community
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