Appendix B 11 Macy’s Valuation Report Objective Our objective is to estimate the Free Cash Flow (FCF) value of Macy’s Inc. as of July 24, 2011 (date of valuation). Macy’s Inc. is a C-Corporation organized under the laws of Delaware. It is primarily engaged in the business of premier retail fashion. The standard of value was Free Cash Flow Value, which measures the company’s ability to generate cash after accounting for capital expenditures, which is a fundamental basis for stock pricing. FCF
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company’s Beta using the asset Beta for Kramer.com and Cityretrieve.com. Thus, To determine the value of the project we’ve used incremental Cash flow approach. (Table 2). We started by computing the Incremental Free Cash Flows (FCF) from 2001 until 2006. Then using the discount rate of 15,8%, we calculated the present value of the future Free Cash Flows until 2006. After that, based on the assumption that after 2006 CF would grow at 5%, we estimated the terminal value of the company.
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control of management and is expensive. There are Free Cash Flow techniques and relative valuation techniques that we can use to value Jetblue’s share, however we are going to use the Free Cash Flow technique for this case as this is an IPO and the company had no history whatsoever that we can rely on except by using its similar competitor statistics and assumptions to value Jetblue. In conclusion, we have calculated that using Free Cash Flow technique, the share price is $57 and therefore the current
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AMALGAMATED TELECOM HOLDINGS LIMITED AND SUBSIDIARY COMPANIES 2nd Floor Harbour Front Rodwell Road | Suva | Fiji Islands +679 330 8700 +679 330 8044 | AMALGAMATED TELECOM HOLDINGS LIMITED AND SUBSIDIARY COMPANIES 2nd Floor Harbour Front Rodwell Road | Suva | Fiji Islands +679 330 8700 +679 330 8044 | 1.0 EXECUTIVE SUMMARY Trends and ratios calculated for the historical years 2006-2010 has been fluctuating, indicating effects
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from the cash flow statement of a firm for fiscal year 2003: Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Amortization of software Tax benefits of employee stock plans Special charges (Gains)/losses on investments Change in operating assets and liabilities: Receivables Inventories Pension assets Other assets Accounts payable Pension liabilities Other liabilities Net cash provided by
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trouble where it would be wise to preserve cash. Both S&P and Value Line anticipated modest growth for American Greetings in the coming years. Analysis We conducted an analysis for 2012 through 2015 to determine the value of the company. Our analysis began with calculating the operating cash flows (OCF = operating income * (1 – 0.4) - ∆NWC): Operating Cash Flow (millions) 2011 118 2012 83 2013 86 2014 88 2015 91 Operating Cash Flow (millions) 2011 118 2012 83 2013
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Question 1 Nice Corp's last dividend was $1.55 and the directors expect to maintain the historic 5 percent annual rate of growth. You plan to purchase the stock today because you feel that the growth rate will increase to 8 percent for the next three years and the stock will then reach $22.50 per share. How much should you be willing to pay for the stock if you require a 15 percent return? Projected dividends next 3 years: Year 1 ($1.55 x 1.08) = $1.674 Year 2 ($1
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EBMA Level 8 Diploma in strategic Business Research and Leadership Direction Unit Title: Strategic Financial Analysis and Planning Table of Contents Executive Summary 3 1.Critique and evaluate research ....... 4 2.Critically apply modern financial tools 6 3.Use main types of investment appraisal tools 8 4.Critically evaluate the importance of research 10 References 11 Executive Summary The decision making of management
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M & A Valuation Theories and Application The leading methods used in the valuation of a firm for the purpose of merger analysis are 1) the comparable companies or the comparable transactions approach; 2) the discounted cash flows spreadsheet method which will, probably, be the most familiar to you as it does not differ that much from the capital budgeting methods of analysis using Net Present Value (NPV); and 3) the formula approach. In the comparable companies approach, a number of market
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Valuation Assumptions The models used to value the target firm SkyWest will include: I. Residual Earnings Model (REM) II. Abnormal Growth Model (AGM) III. Dividend Discount Model ((DDM) IV. Discounted Cash Flow Model (DCF) V. Method of Comparables These models have been based on some fundamental assumptions. These assumptions can be found in Appendix 1.1. I. Residual Earning Model The REM splits the intrinsic value of a company into two components; the book value and the present value
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