an investment decision analysis). In lease analyses we are comparing lease financing (which is a type of debt) to “regular” debt financing. Video 20 and Chapter 25 in BMA are the main materials. As you review the video, work through the lease example in the Excel file (financing uma 13.xlsx). Toward the end of video 20 is described the concept of adjusted present value. Pay close attention to this material as well, because it describes how in some very specific cases the results of an investment
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Cents | 44.142 | 46.17253 | 48.06561 | 49.79597 | 51.33964 | Growth Rate in Earning Per Share | 0.051 | 0.046 | 0.041 | 0.036 | 0.031 | From 2013, every year’s data is calculated depending on the previous year. So, we take 2013’s data as an example. Firstly, we need to estimate the net income and then from bottom to top to calculate EBIT. Since growth rate of earning per share in 2013, is 5.1% and the earning per share in 2012 was 56 cents. So, the earning per share in 2013 is 56(1+5.1%) = 58
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UNIVERSITY OF OREGON INVESTMENT GROUP February 26th, 2010 Consumer Goods California Pizza Kitchen BUY Stock Data Price (52 weeks) Symbol/Exchange Beta Shares Outstanding Average daily volume (3 month average) Current market cap Current Price Dividend Dividend Yield Valuation (per share) DCF Analysis Comparables Analysis Target Price Current Price Summary Financials Revenue Operating Cash Flow Net Income 662M 2009A 44.6M 2009A 4.6M 2009A 9.41 – 17.44 CPKI / NYSE 1.25 24,183,000 400,876 365
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| Dr. Pepper Snapple Group Inc | Financial Analysis | | Mahruf Rashid Ratul | Wilmington UniversityMBA - 7200Professor Bruce Martin05/03/2015 | | Abstract Carbonated soft drinks are a norm in our everyday lives. With so many brands out there sometimes it is difficult as a consumer to pick a favorite. However, as an investor one must be careful and perform a financial analysis of the company one wishes to invest in. This paper focuses on the financials of Dr. Pepper Snapple, a
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2015) The article talks about the rise of startups and the way they are changing how business is done and what it means to be a company. They are referred to as disrupters or insurgent companies. It illustrates this fact further with examples of Uber, Airbnb and cloud computing companies who are now threats to cabbies, hoteliers and hardware makers. It also points out the unique characteristic of these insurgent companies, which is the fusion of ownership with responsibility
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Returns: σ=S=t=1n(rt-rAvg)n-1 In Excel use =Average and =STDEV functions Measuring Standalone Risk: Coefficient of Variation Coefficient of variation = CV=σr Risk Aversion and Required Rate of Return Assume risk aversion for investors Textbook Example: Basic Food’s Price up to $150 from $100 Sale.com Price down to $75 from 100. Difference in return, 20%-10%= Risk Premium Risk in Portfolio Context Expected return on portfolio=Weighted expected return=rp=i=1nwiri Portfolio Risk Stocks can
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Efficiency………………………………………………………………….19 Valuation Tables Pro Forma Income Statement……………………………………………..21 Pro Forma Balance Sheet…………………………………………………23 Free Cash Flow……………………………………………….…………...25 Free cash flow valuation summary……………………………..……...….26 WACC calculation………………………………………………………...27 Sensitivity analysis………………………………………………………...27 Graphs/ Plots Net income (loss) by year……………………………………………….…28 Free cash flow by year……………………………………………………..28 Written Report Executive Summary Executive
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instead of seeking shareholders wealth maximization seek to maximize profits. Profit refers to the surplus generated by a business and hence the firm may conclude that profit maximization will in turn lead to shareholder wealth maximization. One such example is Food-For-Life Ltd. Food-For-Life Ltd Food-For-Life Ltd. is a catering company started around 25 years ago rendering its services to educational institutions, corporations etc. across the UK
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Course Outline and Review for Finance 6310 This outline is NOT a substitute for studying class lecture notes and homeworks. It is merely a guide of the material covered and is not intended to include answers to exam questions. Exam 1: Chapters 1-7 Terminology & Concepts • See lecture slides and homework • Financial system functions and goals • Types of assets, physical, financial, … • Debt, money market, notes, bond, government debt, sovereign debt • Types of US government
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stocks and bonds. Part II – In Part II, you will provide the company with a recommendation for purchasing a new machine. You will base your recommendation on the Net Present Value (NPV) of the capital investment project using the cost of capital (WACC) as your discount rate. About AirJet Best Parts, Inc. AirJet Best Parts, Inc. is a company dedicated to the design and manufacturing of aviation and airplane technologies and parts. The company has commercial and military clients worldwide.
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