1000 (PVIF kd, n) = 100*2.322 + 1000 * 0.675 = 232.2 + 675 = 907.2 Or (discounted flows) 1 100 x 0.877 = 87.70 2 100 x 0.769 = 76.9 3 1100 x 0.675 = 742.5 907.1 Semi-annual bond 2x3years = 6 periods Kd = 14/2 = 7% Coupon = 100/2 = 50 Practice bonds Time value of money problems Practice problems when you have to find interest rate/periods/factor Practice calculating cash flows for homework | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | Savings | -20000 | 5000
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29 22.26 21.22 Dividend Yield (%) 2.38 2.40 2.52 2.72 2.74 2011A 2012E 2013E 2014E 2015E Investment Summary We initiate coverage of Domino’s Pizza Enterprises Limited (DMP) with a hold recommendation and a target price of $10.67 using Discounted Cash Flow Valuation (DCF), offering a 10% upside from current stock price at $9.70 on 19th June, 2012. As DMP operates in regions with different levels of risks, growth and margins, our estimation of revenue is based on top down approach considering
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| Pfizer Stock Report | | Fall 2013 Research Project | | Pfizer Stock Report | | Fall 2013 Research Project | Saint Joseph’s University Contents II. Introduction 2 III. Macroeconomic Review 3 IV. Stock Market Analysis 6 V. Industry Analysis 8 VI. Company Strategic Analysis 10 VII. Company Financial Analysis 12 VIII. Application of Valuation Methodologies 13 IX. Conclusion and Recommendations 15 X. Exhibits 16 A. Exhibit A 17 B. Exhibit
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the rate of savings. As part of rationalization of operations, some assets will be sold generating a positive cash flow of $20 million net of tax in years 1 and 2 and $10 million in year 3. The analyst judges that these costs savings are rather certain, reflecting a degree of risk consistent with the variability in the firm’s EBIT. Accordingly, the analyst decides to discount the cash flow at the firm’s cost of debt of 6%. The merger will expand revenues through cross-selling of products, efficient
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Individual Memo for Rapid Repair Auto Parts Rapid Repair’s profitability appears good but their cash balance has shrunk. Write a report that provides a financial analysis and summarizes their current situation (Hint: ratios and cash flow analysis). What changes do your recommend, if any, in 2013? Preparatory Questions for Horniman Horticulture Horniman’s profitability appears good but their cash balance has shrunk just like the previous case. Write a report that forecasts the financial outlook
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of acquisitions by Chinese companies had bad experience in the past, and considering the unsuccessful past experience - this acquisition is under a high risk. 2. Determine the value of the PEM shares to SZLN by employing (1) discounted cash flow using the free cash flow to equity method, Refer to the attached excel sheet named 'question 2' (2) the comparable transactions method. The purpose of the comparable transaction method is to evaluate a project by comparing
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Valuation Memo Analysis of valuation methodologies Comparable company analysis compares trading and operating performance of the Wynn Resort to its peers. We used this valuation method to determine how the market has valued the earnings and cash flows of similar companies and allow us to analyze other parameters such as book value, leverage and margins. The main benefit of this valuation methodology is that market efficiency ensures that the trading multiples are similar for companies in a related
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Chrysler & DaimlerAcquisition-Merger Case Study | | Situation faced by company After facing some hardships and bad acquisitions in the 80s and 90s, Daimler-Benz led by Jurgen Schrempp began to see the light in the mid-90s. By focusing on the most profitable businesses within Daimler and reducing the number of businesses at Daimler from 35 to 23, Shrempp was able to post high profits in 1996 and 1997 despite the poor looking financials in the previous years. In order to remain profitable
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conservative and they have understated Arcadian’s potential. This can be seen in Exhibit 2 where the total sales are 48% less than Arcadian’s forecast in the terminal year. Additionally, in the terminal year, Sierra’s forecast for net income and free cash flow is respectively 20% and 35% less than that of Arcadia’s. Sierra is still determining the
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29 22.26 21.22 Dividend Yield (%) 2.38 2.40 2.52 2.72 2.74 2011A 2012E 2013E 2014E 2015E Investment Summary We initiate coverage of Domino’s Pizza Enterprises Limited (DMP) with a hold recommendation and a target price of $10.67 using Discounted Cash Flow Valuation (DCF), offering a 10% upside from current stock price at $9.70 on 19th June, 2012. As DMP operates in regions with different levels of risks, growth and margins, our estimation of revenue is based on top down approach considering
Words: 8454 - Pages: 34
