The Black & Decker Corporation (BDK) [1] I. Introduction This teaching note describes the valuation of publicly traded equity securities using the Discounted Cash Flow (DCF) and Price/Characteristic (market comparison) approaches, with a specific spreadsheet example for The Black and Decker Corporation. Free cash flow valuation and comparables (comps) are key tools in fundamental analysis, the process of picking stocks with high expected return based on an analysis of the company. In
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BASIS FINANCIAL STATEMENTS Chapter Summary Financial statements are the primary means of communicating financial information to users. Chapter 2 covers the income statement, balance sheet, and statement of cash flows. Chapter 1 set forth the objectives of the financial reporting process, and offered the observation that these objectives are met in large part by a set of financial statements. In this chapter, we take
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accounting helps to memorize all the transactions with records, it is the objective of accounting. * To ascertain operating results- * Accounting ascertains whether the business has earned a profit or suffered a loss by preparing profit and loss statements,
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ASSURANCE AND ACCOUNTING CANADIAN GAAP – IFRS COMPARISON SERIES Issue 15: IAS 1 Presentation Of Financial Statements Both IFRS and Canadian GAAP are principle based frameworks, and from a conceptual standpoint, many of the general principles are the same. However, the application of those general principles in IFRS can be significantly different from Canadian GAAP. Therefore, to understand the magnitude of the differences between IFRS and Canadian GAAP, it is essential to look beyond the general
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financial statements was the most important. The purpose of this paper is to identify the four basic financial statements and the purpose they serve. Throughout this paper I will breakdown how the different financial statements could be useful for managers and their employees. I will also discuss how the different financial statements could be beneficial for creditors and investors. To conclude the paper I will summarize it all up with a conclusion. The four basic financial statements are balance
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decision-making process. Cost Accounting is a subset of managerial accounting that is involved with the determination and accumulation of product or service costs. 3. Auditing, or Public Accounting is the function in which a firm's financial statements are reviewed or examined by an independent third party (the auditor). Public accounting firms and individual certified Public Accountants (CPAs) provide this auditing service. The work that accountants do is divided into three broad fields: 1
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organization for a business is not an important issue, as this decision has very little effect on the income and wealth of the firm's owners. T/F false 2.The major advantage of a regular partnership or a corporation as a form of business organization is the fact that both offer their owners limited liability, whereas proprietorships do not. T/F false 3. Which of the following statements is CORRECT? A) One of the disadvantages of incorporating a business is that the owners then become
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the statement or answers the question. ____ 1. Which of the following concepts of cash is not appropriate to use in preparing the statement of cash flows? a. cash b. cash and money market funds c. cash and cash equivalents d. cash and U.S. treasury bonds 2. On the statement of cash flows, the cash flows from operating activities section would include: a. receipts from the issuance of capital stock b. receipts from the sale of investments c. payments for the acquisition of investments d. cash receipts
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Financial Statement Analysis Session #1: Fundamental Analysis and Valuation March 2015 In-Mu Haw (许 仁茂) 1 Create value through acquisition to build brands (over 100) 2 Lenovo vs. HP Stock Price Lenovo created value through acquisitions Poor acquisition (overpaid: $8.8B) $18 million in 2013 3 Deloitte Report Chet Wood, Managing Partner of Deloitte LLP, Merger & Acquisition Services: • • About 70 percent of all health plan M&As fail to create meaningful shareholder value. CFOs and management
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Spreadsheet for Statement of Cash Flows For Year Ending December 31, 2010___ Analysis of Changes 31-Dec-09 Debit Credit 31-Dec-10 Balance sheet debit bal. accounts: Cash 4000 10000 3500 10500 Accounts receivable 9000 1000 8000 Merchandise inventory 18000 3000 21000 Equipment 15000 3500 500 18000 Balance sheet=credit bal. accounts Accum. Depreciation Equip 3000 1000 4000 Accounts payable 5000 2000 7000 Incomes taxes payable 2000 1000 1000 Common Stock
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