HBCFinancial Analysis: The Value of Comcast before the Acquisition: We use the DCF (Discounted Cash Flow) analysis to estimate the value of Comcast before the acquisition. First, we want to calculate the expected future free cash flows available (Appendix 1) after making necessary expenditures for the firm to continue as a going concern. In order to get the projected financial statements, we made following assumptions: * Growth rate: We believe Comcast has entered the mature stage of
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the firm, dependent upon each projects free cash flow to determine the leverage a firm and its projects specifically. This in turn will help the firm take advantage of the corporate tax shield. “With a constant interest coverage policy, the value of the interest tax shield is proportional to the project’s unlevered value”. (Berk & DeMarzo, 2011) The constant interest coverage policy takes targeted interest into account for the project’s free cash flow to increase leverage and determine the project’s
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Netflix Stock Recommendation Our recommendation for Netflix (NFLX) stock is a strong sell, based on our discounted cash flow valuation of $30/share compared to the market price of $97/share. Netflix is a subscription-based business whose subscribers can instantly watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices. Netflix is prominent in the streaming industry, where it holds the majority market share of 32% (IBIS). Netflix is growing
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Table of Contents Introduction Page 3 Overview of the Company Pages 3 - 5 Financial Statements Pages 5 - 10 Financial Statement Summary Pages 10 - 13 Stock Valuation Pages 13 – 17 Discounted Value of the Firm and Terminal Value Pages 17 - 18 Consideration for Dividend Policy Page 18 Summary Pages 18 - 19 References Pages 20 - 21 Appendices Pages 21 - 28 Financial Analysis of Mead
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1. Company Description: Apple, Inc. was founded by Steven Paul Jobs, Steve Wozniak and Ronald Gerarld Wayne in 1976. The company is headquartered is in Cupertino, CA. Apple designs and manufactures personal computers, related software and mobile communication devices. It designs Mac laptops and software such as OS X, iLife and iWork. Apple was a pioneer in digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with the iPhone. Apple has recently introduced
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Negotiations: Companhia Cervejaria Brahama, S.A Name of Student Name of Institute Date Table of Contents Executive Summary 3 Issues: 4 Recommendations: 4 Value of synergies and intrinsic value per share of Antarctica 5 Form of payment; Cash or common stock? 5 Share-for-share transaction 7 Term sheet and its components 8 Economic Analysis 8 Recommendation 9 Executive Summary In 1999, the CEO of Companhia Cervejaria Brahama (largest brewer in Brazil) was considering the bit
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Using the discounted cash flow model approach and Liedtke’s base case projections, the value of Mercury was estimated to be approximately $421,437,699. The free cash flows for Mercury Athletic Footwear from 2007 to 2011 were calculated from Liedtke’s projections of Mercury’s performance and balance sheet (Exhibit 6 and 7). From Liedtke’s projected performance of Mercury Athletic Footwear, earnings before interests and taxes (EBIT) was evaluated from the consolidated revenue and operating expenses
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to value the target firm’s equity, because a firm is acquired from its owners, not from its creditors. b. Two key items needed to apply the DCF approach to valuing a business are (1) pro forma statements that forecast the incremental free cash flows expected to result from the merger and (2) a discount rate,
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4/26/13 Industry: Variety Stores Sector: Retail Costco Wholesale Corp. Investment Thesis Key Statitisics 52 Week Price Range 50-Day Moving Average Estimated Beta Dividend Yield Market Capitalization (In Millions) 3-Year Revenue CAGR Trading Statistics Diluted Shares Outstanding (In Millions) Average Volume (3-Month) Institutional Ownership Insider Ownership EV/EBITDA (LTM) Margins and Ratios 60.00 81.98 109.75 104.26 0.68 $ 0.28 1.76% 47682 12% Costco is the second largest membership
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is linked by multiplication to its adjacent terms. The complete WACC formula is given by the following: WACC = (1-tc) cd + ce The resulting figure from WACC is a rate which is used to valuate companies by discounting their expected future free cash flows. Moreover it can be used to assess projects. The
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