Managing Director, Sao Paolo Renato Delgado- Associate, Sao Paolo William Morishigue- Senior Analyst, Sao Paolo Discounted Cash Flow is the most widely-used technique for project assessment and is supported by modern corporate finance theory. Under this method, the expected future cash flows must be discounted by a rate that will compensate for the systematic risk of these flows. After this, decisions are based directly on the Net Present Value (NPV): if it is more than zero, the company should invest
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1. Be able to analyze the financial data Finance: It is the study of the management of the funds. Key domains of financing are: * Business finance. * Private finance (personal loan). * The public finance. Finance deals with the savings of money and frequently deals with the lending matters. The field of the finance offers with the time concepts, money, the risk and how they are secured. It takes care of how money used in budgeting. The one of the main source of the financing
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The University of Illinois Executive MBA Case Summaries Accy 401, EMBA; Fall 2000 Accounting courses are usually separated into five general categories. Two, taxes and auditing, are usually quite technical and often focus on CPA preparation. The other three categories are more general: 1. Financial accounting deals almost strictly with financial statement preparation. It focuses on pronouncements issued by the Financial Accounting Standards Board (FASB) and the SEC, and on
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uncertainty of prospective cash receipts from dividends, interest, proceeds from a sale, redemption, and maturity of securities and loans. Another objective of financial reporting is that enterprise resources are claims to resources and changes allocation is the process determining the cost money that is allocated among competing interest. A company will provide to managers information of financial statements such as the balance sheet, income statement, statement of cash flows, stockholders equity statements
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The accounting period in which service revenue is recognized (i.e., revenue for services rendered) is generally the period in which the cash is collected. True False 5. Total assets are $70,000, total liabilities, $40,000 and contributed capital is $20,000; therefore, retained earnings are $15,000. True False 6. The payment of a cash dividend to stockholders increases stockholders' equity. True False 7. The accounting model for the balance sheet is: Assets
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2012 MULTINATIONAL CORPARATION ANALYSIS Google Inc. (NASDAQ: GOOG) is an American multinational corporation which provides Internet-related products and services, including Internet search, cloud computing, software and advertising technologies.[5] Advertising revenues from Ad Words generate almost all of the company's profits. The company was founded by Larry Page and Sergey Brin while both attended Stanford University. Together, Brin and Page own about 16 percent of the company's stake
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12030017D Tutor: Miss Anson Wong Tutorial Session: Wednesday 11:30-12:20 Question 1 Net Present Value (NPV) is the difference between the present value of future cash flows and the present value of the cost of the investment. It measures the surplus or deficit of cash flows, in terms of present values. NPV considers all cash flows. It can give a reliable decision to investors. It can also rank mutually exclusive projects. NPV applies a proper discount rate, which means it includes the time value
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Chapter 1 Accounting in Business QUESTIONS 1. The purpose of accounting is to provide decision makers with relevant and reliable information to help them make better decisions. Examples include information for people making investments, loans, and business plans. 2. Technology reduces the time, effort, and cost of recordkeeping. There is still a demand for people who can design accounting systems, supervise their operation, analyze complex transactions, and interpret reports. Demand also
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Ensuring a project has a positive impact on the earnings per share over its entire economic life is therefore critical. Payback is the number of years necessary for free cash flow of a project to amortize the initial project outlay. The specified time period for which payback is to be completed by is six years. The payback rule is reasonably simple and has a number of pitfalls in practise because it ignores the project’s cost of capital and time
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FINANCIAL STATEMENTS Cash Flow Statement For the Year Ended December 31, 2011 (000s) Cash Flows From Operating Activities Net Income 397 Depreciation and amortization 318 Unrealized gain on marketable securities Decrease (increase) in deferred taxes (12) Balance Sheet (44) As of December 31, 2011 (000s) Net increase (decrease) in receivables, inventories, prepaids, payables Total Cash Flows From Operating Activities Assets Cash Cash Flows From Investing Activities
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