metrics: inconsistency, misclassification, ease of manipulation, and measurement errors. The article provides an example of the difference measures used for cash flow among various companies such as P&G, The Gap, and others. The first valuation method is multiples, which include only recurring or sustainable cash flows and excludes discretionary cash flows. The article shows an example of the price to free cash flow multiple (P/FCF) and “cash flow to yield” (FCFfY) as an increasingly popular valuation
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INFOANALYTICA FINANCIAL, ECONOMIC RESEARCH AND INDUSTRY ANALYSIS SUMMER INTERNSHIP REPORT ANANDARUP GHOSHAL 2008 ICFAI BUSINESS SCHOOL, AHMEDABAD SUMMER INTERNSHIP PROJECT FINANCIAL, ECONOMIC RESEARCH AND INDUSTRY ANALYSIS IBS AHMEDABAD 2|Page SUMMER INTERNSHIP PROJECT REPORT PROJECT AREA: FINANCIAL AND ECONOMIC RESEARCH AND INDUSTRY ANALYSIS FACULTY GUIDE: PROF. AMIT SARASWAT COMPANY NAME: INFOANALYTICA COMPANY GUIDE: ULLAS UNNIKRISHAN MARAR IBS AHMEDABAD
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perpetual. Discount rate for the project is also Cost of Capital since the project must earn enough to pay its suppliers (Stockholders and bondholders). As a discount rate we can use CAPM, WACC, or we can drive it from DDM. Since we have CAPM we can calculate Cost of debt and come out with our discount rate of WACC. WACC = Cost of debt +
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of divisions, in which a finance charge is deducted from the profits of the division. The finance charge is calculated as the net assets of the division, multiplied by an interest rate – normally the company’s weighted average cost of capital. Example 1 Division A made a profit of $10,000 during the most recent
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project scored the highest ranking above all other projects due to its 47.97 WACC rating, NPV at minimum rate of return of 41.43 and an IRR of 28.7%. Project No. 11 7 8 9 4 10 2 3 5 1 6 Project Name Strategic Acquisition Eastward Expansion Southward Expansion Snack Foods Artificial Sweetener Inventory Control System New Plant Expanded Plant Automation & Conveyor System Expand Truck Fleet Effluent Treatment Program NPV at Corp. WACC (10.5%) 47.97 11.99 9.00 8.95 5.21 1.16 0.99 0.28 -0.87 -1.92 NPV not given
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Bachelor Thesis Department of Business Studies Århus, the 3rd of May 2010 Valuation of BMW - Financial & Strategic Analysis Authors Rasmus Ramshøj Pløen Exam no. 282821 BSc (B/IM) Mikkel Kronborg Olesen Exam no. 283755 BSc (B) Academic Advisor Nicolai Borcher Hansen ASB Aarhus School of Business TABLE OF CONTENTS 1 PREFACE ..............................................................................................................................................................
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MERCURY ATHLETIC FOOTWEAR Problem statement: West Coast Fashions, Inc a large business of men’s and women’s apparel decided to dispose of one of their segments; Mercury Athletic. John Liedtke, head of the business development for Active Gear, Inc saw it has a possible opportunity for them to acquire it. The footwear industry is very competitive, with low growth and stable profit margins. AGI is very profitable but it is smaller than its competitors, which is becoming a disadvantage. Therefore
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Case Assignment: Calpine Corporation Restructuring This case illustrates how bargaining among bankruptcy stakeholders over enterprise value functions inside the confines of a Chapter 11 case. Calpine is a leading independent provider of energy that filed for Chapter 11 protection in December 2005. This case picks up in early November 2007, just prior to a November 15, 2007 deadline set by the bankruptcy judge for submission of expert reports on the enterprise valuation of the restructured Calpine
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Corporate Finance Fundamentals [FN1] Examination Blueprint 2010–2011 Purpose The Corporate Finance Fundamentals [FN1] examination has been constructed using an examination blueprint. The blueprint, also referred to as the test specifications, outlines the content areas covered on the examination and the weighting allotted to each content area. This document also lists the topics, the level of competence for each topic, and the related learning objectives. The learning objectives have been designed
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Internet connection and a computer to browse a limitless universe of goods all in the comfort of their homes. Our team has evaluated and analyzed this company, and in doing so, have gone through theoretical fluctuations in its financial statements. For example, what would happen if Amazon experienced an increase in long-term debt of ten percent? Well, long-term debt consists of loans and financial obligations lasting more than one year. While a portion of long-term liabilities must be paid within the year
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