Accounting policy of Forex transactions. Compare the policy with the relevant accounting standard (AS and IAS) Observe the relevant items in the IS/CFS/BS and give your comments Observe the translations gains or losses if any The consolidated revenue for Infosys in FY 2010 is Rs. 22,742 cr with a Year on Year growth of 4.8%. As per IFRS, the annual revenues stood at US $1,313 million, with a Year on Year growth of 2.5%. Sensitivity of INR against USD For every 1% change in INR against
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Finding Great Companied to Invest In Warren Buffet, Chairman of Berkshire Hathaway says, “It is best to invest in great companies at a fair price than a fair company at a great price.” That’s a pinnacle statement about Buffet’s investment style. So, to invest like Buffet, you need to know what features denote a great company. Please read and reread the following carefully. A great company has a competitive advantage. It has a consumer monopoly, and like a great fortress, has a moat preventing
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full swing for a good six months, Chemalite, Inc. is seeing its cash balance drop tremendously, which Alexander and his investors view as a negative. Even though they thought their business was doing well, the numbers they are reading indicate otherwise. We have to determine how these numbers reflect the true nature of the company. Issues 1. Should they continue with business in 2004 and beyond? 2. Do they have a positive cash flow? 3. Are they profitable? Decisions I do believe that Chemalite, Inc
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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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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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two alternatives: doing or not doing a project. Benefits and costs are discussed in the next tip. Financial analysis compares benefits to costs (tip 2) and analyzes the value of a project as an investment (tip 3). The analysis may include a cash flow statement, return on investment, net present value, internal rate of return, and payback period. Assumptions are events that a business case assumes will happen. For example, a business case might assume approval from a regulatory agency. Critical
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