8-K 1 d949178d8k.htm FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): June 23, 2015 LOGO Kraft Foods Group, Inc. (Exact name of registrant as specified in its charter) Virginia 1-35491 36-3083135 (State or other jurisdiction of incorporation) (Commission File Number)
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for the Target Company. In the end, the price paid is whatever the buyer and the seller agree to. The valuation decision is treated as a capital budgeting decision using the Discounted Cash Flow (DCF) Model. The reason why we use the DCF Model for valuation is because: ▪ Discounted Cash Flow captures all
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Question 1 Palm & Sun's (PS) free cash flows are expected to be $200 million next year and $488 million two years from now. After that, free cash flows are expected to grow at a constant rate of 3% per year forever. P&S’s WACC is 11%, its cost of equity is 14% and its cost of debt is 9.5%. They have $400 million of debt and $78 million in cash on their balance sheet. Use the discounted cash flow model to find P&S’s current equity value (rounded to the nearest million dollars).
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This will be a result of M&D, manufacturing, development and administrative costs reduction. * 3 Complete ownership will give the company complete access to technology and R&D projects. * 3 It will also give the company access to its cash amounting to $9.5billion, which can also be used to make payment for debt raised for acquisition. * 4 The company can also create a contract allowing it to distribute Genentech’s best selling drugs. Risks of owning 100% of Genentech’s shares:
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IMPORTANT; Project Finance Coverage Ratios DS = Interest Payment + Principal Repayments due on a given date CADS = Cash Available for Debt Service CADS equals to pre-tax operating income plus interest income from reserve account minus mandatory capital expenditure minus investment in net working capital minus required contributions to reserve accounts. Note: Depreciation & amortisations should be added back to net operating income. Indirect taxes should also be subtracted
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Introduction………………………………………………………………………………..3 Liquidity Ratios………………………………………………………………………….. 3 Current Ratios …………………………………………………………………………… 3 Cash Ratios ……………………………………………………………………………….4 Profitability Indicator Ratios ……………………………………………………………5 Operating Margin ……………………………………………………………………… 5 Gross margin …………………………………………………………………………… 6 Discounted Cash Flow ……………………………………………………………… 7 Compare and contrast the value (intrinsic values) with the current market prices. …….8 Analyze your finding. …………………………………………………………………
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cost less any accumulated depreciation and any accumulated impairment losses. The building represents a cash-generating unit (CGU) for which the following information is available as of December 31, 2010: Building | 12/31/10 inthousands | Carrying amount | $1,100 | Value in use | 900 | Fair market value less costs to sell | 800 | Fair market value | 850 | Undiscounted future cash flows | 1,150 | Eagle in Serbia: In Serbia, in 2008, Eagle acquired a smaller competing company and goodwill
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less any accumulated depreciation and any accumulated impairment losses. The building represents a cash-generating unit (CGU) for which the following information is available as of December 31, 2010: Building 12/31/10 in thousands  Carrying amount  $1,100  Value in use   900  Fair market value less costs to sell 800  Fair market value  850  Undiscounted future cash flows 1,150  Eagle in Serbia: In Serbia, in 2008, Eagle acquired a smaller competing company and goodwill
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Case Project Case # 1: Valuation “ Mercury Athletic Footwear : Valuing the Opportunity” FIN 321 Dr. Ghosh Edward Pinela Adriana Nava Kristie Tillett Grace Tung Zhibin Yang Mercury Athletic Footwear 1. Is Mercury an appropriate target for AGI? Why or why not? There is sufficient evidence to suggest it will be advantageous for AGI to acquire Mercury Athletics. Factored into the decision is the lack of information on the work culture both firms currently possess.
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A Tutorial on Discounted Cash Flow, Fall 2015 Notes prepared by John Tsagarelis, jtsagare@uwo.ca DRAFT: Comments, Suggestions Welcome 9/20/2015 Preamble As we walk through life we develop mental maps of situational settings. These are not sight patterns, but rather decision patterns among choices available to us in any given circumstance. For example, we take familiar roads to our summer cottage or accept return-on-equity is an unbiased stock return predictor. Once we form a map, it is
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