Guillermo Financial Analysis
Guillermo Financial Analysis University of Phoenix FIN/571 November 14, 2012 Facilitator:
Guillermo Financial Analysis This report for Guillermo Furniture Store will give an in-depth analysis of this company cost of capital and multiple valuation techniques as a reduction of Guillermo financial risks. With these evaluations there will be a determination of the present value net as well as base of its expected future net cash flows. This determination will be made by a variety of financial concepts that will be determined by gathering Guillermo present value of net to improve the company’s future cash flow. A brief description of the company cost of capital that is the required return for a capital budgeting project. Emery, D.R. Finnerty, J.D., &Stowe, J.D. (2007) Corporate Financial management (3rd ed) Morriston NJ. Wohl Publishing Inc. In today’s business there are all types of measures to be taken when analyzing methods of financial improvement. These measures are the ones that have been put in place for Guillermo’s Furniture in order to gather a successful outcome for the stores a better financial outcome. Valuation techniques Guillermo Furniture is family owned company that has been around for many years and the need for valuations techniques are important to enhance growth. While the company attempts to expand and compete with the new technologically competitors, they need to understand alternatives available to them. In an attempt to understand the relationship between all the variables in the furniture business, multiple valuations are used to show the value the value. The commonly used techniques are; Discounted cash flow (DCF) analysis, comparable transactions method and the market valuation. Collectively all of the techniques help reduce risk from expanding in foreign markets. The Discount Cash Flow Valuation (DCF) would be the best technique for the organization
Guillermo Financial Analysis This report for Guillermo Furniture Store will give an in-depth analysis of this company cost of capital and multiple valuation techniques as a reduction of Guillermo financial risks. With these evaluations there will be a determination of the present value net as well as base of its expected future net cash flows. This determination will be made by a variety of financial concepts that will be determined by gathering Guillermo present value of net to improve the company’s future cash flow. A brief description of the company cost of capital that is the required return for a capital budgeting project. Emery, D.R. Finnerty, J.D., &Stowe, J.D. (2007) Corporate Financial management (3rd ed) Morriston NJ. Wohl Publishing Inc. In today’s business there are all types of measures to be taken when analyzing methods of financial improvement. These measures are the ones that have been put in place for Guillermo’s Furniture in order to gather a successful outcome for the stores a better financial outcome. Valuation techniques Guillermo Furniture is family owned company that has been around for many years and the need for valuations techniques are important to enhance growth. While the company attempts to expand and compete with the new technologically competitors, they need to understand alternatives available to them. In an attempt to understand the relationship between all the variables in the furniture business, multiple valuations are used to show the value the value. The commonly used techniques are; Discounted cash flow (DCF) analysis, comparable transactions method and the market valuation. Collectively all of the techniques help reduce risk from expanding in foreign markets. The Discount Cash Flow Valuation (DCF) would be the best technique for the organization
References: Duran, A. (January 2009). Sensitivity analysis of Asset flow Differential Equations and Volatility Comparison of tow related variables. Numerical Functional Analysis And Optimization, 30(1/2), p.82-97. Retrieved from University o f Phoenix Library, 11 November 2012. Emery, D.R., Finnerty, J.D. & Stowe, J.D. (2007). Corporate Financial Management (3rd Ed.). Upper Saddle River, NJ: Prentice Hall. Katum, B. (May 2011). Assessing Uncertainty and Risk in public sector investment Projects. Technology and Investment, 2(2), p.105-123. Retrieved from University of Phoenix Library, 11 November 2012. Value Cruncker Retrieved from on November 13, 2012 http://www.valuecruncher.com/static/dcf Wenk, D. (2006, August 16). Using an optimal capital structure in business valuation. Retrieved from http://www.kotzinvaluation.com/articles/capital-structure.htm weighted average cost of capital or wacc . (2012, November 13). Retrieved from http://www.istockanalyst.com/glossary/WACC