CHICKEN IPO VALUATION AND NEGOTIATION FIN 433 WINTER 2016 PROFESSOR GREGG JARRELL Introduction Chicken is a private consulting firm that collects, stores, and analyzes “big data” for large corporations and governments. Chicken was founded in 2008 and had 2014 Sales of $516,302 and EBIT of $206,521. Chicken is planning to become a public firm via an Initial Public Offering (IPO) in which it will sell 100,000 newly-issued common shares to the US investing public at a pre-specified
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strategy. If Amoco can strike a price wherein Apache shares some of its operating savings with Amoco, both parties can generate positive net present values from the transaction. Acquisition of MW Petroleum may also reduce the volatility of Apache’s cash flows by making them less dependent on gas. Although this may not benefit shareholders directly, it will likely enable management to sleep better and might increase Apache’s borrowing capacity, thereby benefiting shareholders indirectly. 2. (10
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strategy. If Amoco can strike a price wherein Apache shares some of its operating savings with Amoco, both parties can generate positive net present values from the transaction. Acquisition of MW Petroleum may also reduce the volatility of Apache’s cash flows by making them less dependent on gas. Although this may not benefit shareholders directly, it will likely enable management to sleep better and might increase Apache’s borrowing capacity, thereby benefiting shareholders indirectly. 2. (10 points
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manage the cash flow of an organization and may even be able to create forecast models that assist with identifying new opportunities to invest. 1-4) In general terms, how is value measured? What are the three factors that determine value? How does each factor affect value? According to our text, value is “the present, or current, value of the cash flows an asset is expected to generate in the future” (Besley p15). Generally, it is measured by three things: expected future cash flows, timing of
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Advance Financial Management Graduate Business Administration 645 CRN: 11046 Building 163 – Room 2032 Winter Quarter 2013 Wednesday: 6:00-8:50 Paul Sarmas www.csupomona.edu/~psarmas CATALOG DESCRIPTION: A seminar course in finance utilizing comprehensive cases to simulate the role of the financial manager. 3 seminar-discussion. Prerequisite: GBA 546, all required 500-level courses, and microcomputer proficiency. Concurrent enrollment in GBA 646. Unconditional standing requirement
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Research Analyst Report - Fall 2012 Due Date: October 25th at 4:00PM in Finance Department and through SafeAssign on Blackboard Length: No more than 8 pages + Appendix which includes a basic DCF and Multiples Valuation Your paper should include each of the following sections: 1) Brief Company Overview (Front Page)- Provide a brief overview of the company which could include: Market Capitalization Area of Operations (Example: US, Canada and Mexico) Primary Line of Business Customers
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Group 6 Addison Haller, Noah Passage, Brad Pisarcik, Andrew Tucker, Jun Zheng Flinders Valves and Controls Inc: Potential Merger and Acquisition with RSE International Corporation Executive Summary We are presented with the opportunity to evaluate two enterprises, which are in discussion over a possible acquisition. Flinders Valves and Controls Inc. (FVC) achieved a reputation for engineering excellence from its capability in providing specific applications for the defense and aerospace industries
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interest 2. Stockholders versus Creditors * Creditors decide to loan money to a corporation based on the riskiness of the company, its capital structure and its potential capital structure. All of these factors will affect the company's potential cash flow, which is a creditors' main concern. * Stockholders, however, have control of such decisions through the managers. * Since stockholders will make decisions based on their best interests, a potential. * agency problem exists between the
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SENSITIVITY ANALYSIS NPV calculation using 13% as the cost of capital FOR PROJECT A Cash Flows DCF (13%) PV 350,000 0.8850 309,750 350,000 0.7831 274,085 350,000 0.6931 242,585 826,420 NPV = 826,420 – 735,000 NPV = 91,420 FOR PROJECT B Cash Flows DCF (13%) PV 300,000 0.8850 265,500 300,000 0.7831 234,930 300,000 0.6931 207,930 708,360 NPV = 708,360 – 690,000 NPV = 18,360 FOR PROJECT C Cash Flows DCF (13%) PV 200,000 0.8850 177,000 200,000 0.7831 156,620 200,000 0.6931
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Porter’s 5 Forces The ability rivalry has worked to enable the English Premier League to become one of the top clubs within the world and Europe, in order to attract the finest players worldwide. Strategy We aim to increase our revenue and profitability by expanding our high growth businesses that leverage our global community and marketing infrastructure. The key elements of our strategy are: * Expand our portfolio of global and regional sponsors: We are well positioned to continue to secure
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