Graduate School of Business Administration University of Virginia UVA-F-1274 METHODS OF VALUATION FOR MERGERS AND ACQUISITIONS This note addresses the methods used to value companies in a merger and acquisitions (M&A) setting. It provides a detailed description of the discounted cash flow (DCF) approach and reviews other methods of valuation‚ such as book value‚ liquidation value‚ replacement cost‚ market value‚ trading multiples of peer firms‚ and comparable transaction multiples. Discounted
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doing is suitable for me. The reasons are as follows. In the first place‚ I normally have a better understanding on the things that I learned by doing them. Ten years ago‚ after graduated from a university‚ I began working for an electronic company‚ which manufactures color televisions. During the first several months‚ I just sat in my office to read the mechanisms of color television from books. Those theories seemed to be so abstract to me that I can only understand 30% of them. So I decided to go
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Introduction This is a takeover report which will analyse American Cable Communications (ACC) decision-making of acquisition. ACC is one of the largest cable operators in the US by the end of 2007. The company provided video‚ internet and landline telephone service‚ but it did not have any kind of wireless offering. The cable industry has been developing enormously over the last decades because of the advances in technology‚ changes in regulation and shifts in competitive dynamics. In order to gain
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Health Care Communication HCS 350 October 25‚ 2013 Health Care Communication The purpose of this paper is to inform family caregivers on how to enhance communication in health care. Health care communication is the written‚ verbal‚ and nonverbal correspondence between all persons involved in patient care‚ to include the patient. Furthermore‚ this correspondence should be about patient issues‚ not health care personnel. This paper will inform on the importance and relevancy of communication
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exchange DepReciation: impact analysis January 2012 The Associated Chambers of Commerce and Industry of India ASSOCHAM Corporate Office: 1‚ Community Centre‚ Zamrudpur‚ Kailash Colony‚ New Delhi-110048 Tel: 011 46550555 (Hunting Line) | Fax: 011 46536481/82‚ 46536498 Email: assocham@nic.in | Website: www.assocham.org Executive Summary • The study assesses the impact of rupee depreciation on: The import bill of the country Key import commodities • Rupee depreciation has pushed
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factor from PV of Ordinary Annuity‚ n = 20‚ i = 5% 2) Prepare the journal entry necessary to record the issuance of the bonds. Dr. Cash 1‚124‚623 Cr. Premium on bonds payable 124‚623 Cr. Bonds payable 1‚000‚000 3) Prepare the amortization schedule through December 31‚ 2013. Cash payment = $1‚000‚000*12%*1/2
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Valuation of Goodwill: 1) Hitesh and company decided to purchase a business. The profits for the last four years are: 2006-Rs.60‚000 2007-Rs.75‚000 2008-Rs.72‚000 2009-Rs.69‚000. The business was looked after by the management. Remuneration from alternative employment if not engaged on the business comes to Rs.9000 p.a. Find the amount of goodwill‚ if it is valued on the basis of 3 years purchase of the average net profit for the last four years. 2) Following particulars are available in respect
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2 3 4 5 6 7 8 9 mental Earnings Forecast ($000s) Sales of Mini Mochi Munch 9‚000 7‚000 Other Sales 2‚000 2‚000 Cost of Goods Sold (7‚350) (6‚050) 3 4 5 6 Gross Profit 3‚650 2‚950 Selling‚ General & Admin. (5‚000) - Depreciation - - 7 8 9 EBIT (1‚350) 2‚950 Income tax at 35% 473 (1‚033) 10 11 Unlevered Net Income (878) 1‚918 7-9. Elmdale Enterprises is deciding whether to expand its production facilities. Although long-term
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VND per item (excluding VAT). The total transportation and testing cost is 5 million VND. Their estimated useful life is 5 years. Required: 1. You are asked to create a depreciation table for these equipments‚ using these following methods: a. Straight line method b. Double declining balance method c. Sum of years’ digits method 2. Compare their depreciation expenses and rates‚ then comment on their capital recovery rates. (Assume that this enterprise pay VAT by the tax deduction method) EXERCISE
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Prior to the IPO‚ the market perceived the valuation with positive approval signaled by both Facebook’s private market share auctions and analyst’s reviews. However‚ as it will be examined below‚ Facebook has been significantly over-valued by the underwriters. In addition‚ the market changed its opinion of Facebook shortly after the IPO‚ criticizing the valuation of the company was too high. The differences in market reaction showcase shortfalls in valuation‚ and it is recommended that analysts and
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