services. Netscape gained its large market share by initially giving away its product for free‚ which turned out to be a very successful strategy. However Netscape finds itself in a risky competitive situation‚ as new competitors have entered the web browser‚ server and service markets. Currently Netscape is still by far the web browser industry leader. It gained this position by giving its browser away for free. The web browser market is a fast changing market and in order to remain market leader
Premium Free cash flow Stock market Net present value
Economy 4 Industry 5 Company 5 Investment thesis 5 Important value drivers 5 Risks‚ caveats‚ and exposures 6 VALUATION 7 Summary of important series 7 Selected growth rates 7 Components of weighted average cost of capital (WACC) 7 Free cash flows and economic profit 7 BIBLIOGRAPHY 9 SUMMARY As a student analyst for Drake University’s Krause Challenge Fund‚ I have conducted a financial analysis and valuation of Olin Corporation‚ a producer of Chlor Alkali products and Winchester
Premium Free cash flow Cash flow Inventory
Net Present Value of Mercury Athletic Enterprise The results of my financial analysis based on the Free Cash Flow Method considering the base case of financial projections and assumptions for Mercury Athletic Footwear collated and developed by John Liedtke indicate that that the project to acquire Mercury Althletic has a positive net present value at $243‚025 (in thousands) [ given by PV(FCF)=86‚681+ PV (Terminal Value) =156‚343] which is also greater than the recommended acquisition price of $186
Premium Generally Accepted Accounting Principles Free cash flow Discounted cash flow
Miller and Modigiliani (1961) prove that dividend policy is irrelevant to share value in perfect and efficient capital markets. In this setup‚ no rational investor has a preference between dividends and capital gains. However‚ dividend payout policy is still discussed extensively until now. In this proposal‚ I use a sample of companies from 33 countries around the world to shed light on the relationship among legal origin‚ insider holdings‚ corporate governance‚ and dividend payout policy. This idea
Premium Dividend yield Finance Stock
Debt policy at UST inc. Case To: UST Board of Directors From: UST Financial analysis team Date: 18 January 2011 Subject: Future debt policy at UST and recapitalization option 1. Analysis of UST business current and future environment UST operates in the smokeless Tobacco industry‚ a market with 2 B$ of revenues‚ which grew at a CAGR of 3.7% over the past 17 years‚ but more recently experienced a decrease in growth rate‚ dropping to 2.9% in 1997 and 1.2% in 1998. In this market‚ UST
Premium Corporate finance Stock Stock market
THIS IS A LIST OF EXCEL PROGRAMS THAT YOU MIGHT FIND USEFUL. THEY ARE NOT COPY PROTECTED. FEEL FREE TO MODIFY THEM TO YOUR OWN NEEDS. Corporate Finance Spreadsheets 1. capbudg.xls: This program allows you to do a basic capital budgeting analysis for a project‚ and compute NPV‚ IRR and ROI. (For Macintosh version) 2. risk.xls: This program allows you to use past returns on a stock and a market index to analyse its price performance (Jensen’s Alpha)‚ its sensitivity to market movements
Premium Discounted cash flow Cash flow Corporate finance
will include providing the calculations of cash flows associated with a new investment that the company is considering investing in. As I am an intern‚ I have not been asked to provide a recommendation just an analyst. (Keown Martin‚ Petty 11) Reviewing the information provided‚ Caledonia should focus on free cash flows rather than accounting profits‚ for the fact that these are the flows that the firm receives and can also reinvest. By looking at cash flows we are able to analyze the timing
Premium Cash flow Net present value Investment
Obligations EPS Long-Term Debt Employee Pension Obligations examine the cash flow statement carefully because they are concerned about being paid. The net cash flow provided by operating activities in relation to the company’s liabilities is helpful in making this assessment. Two ratios used in this regard are the current cash debt ratio 243 244 and the cash debt ratio. In addition‚ the amount of free cash flow provides creditors and stockholders with a picture of the company’s financial
Premium Balance sheet Asset Cash flow
through aseries of holding companies including Garsdale‚ which also owns stakes in Scartel (Yota) and Euroset. TeliaSonera owns a blocking stake of just over 25%. Megafon was listed on the London and Moscow stock exchanges in December 2012‚ with a free float of just under 15%. Agency theorists treat the firm as a nexus of contracts between owners‚ employees‚ creditors‚ and others. Agency theory advocates (a) efficiency as a means to improve firm performance‚ and (b) the use of governance mechanisms
Premium Dividend Discounted cash flow Weighted average cost of capital
management has narrowed down to opt this two staged transaction. The expected cash flows of the Seagate were stable and established‚ this makes leverage buying possible‚ since the borrower is well credit rated‚ cash flows are steady and the interest rate offered is financially reasonable. Question 2 Stakeholders interest to the reconstruction deal: All parties to the deal are considered to be winners if it is a consented out of free will. However‚ parties to the deal to do not win equally. Seagate shareholders:
Premium Stock market Stock Free cash flow