share = Book value of equity / # of shares i. Current stock price: $51.07 (Yahoo Finance Stock Price as of date 9/21/12) j. Number of shares outstanding (p. 44 Balance Sheet) k. No preferred stock (given) l. Cash‚ short-term investments‚ & non-operating assets = (Cash & cash equivalents) + (Short-term
Premium Stock market Balance sheet Asset
For a project with normal cash flows‚ any change in the WACC will change both the NPV and the IRR. | | [pic] To find the MIRR‚ we first compound cash flows at the regular IRR to find the TV‚ and then we discount the TV at the WACC to | |find the PV. | | [pic] The NPV and IRR methods both assume that cash flows can be reinvested at
Premium Free cash flow Internal rate of return Net present value
discounted free cash flow method. Free Cash Flow: The first step is getting the free cash flow for the next five years. The basic steps to get free cash flow is Net Income+Depreciation and Amortization-Changes in Net Working Capital-Capital Expenditure‚ but there are two extraordinary items 1.Undistributed earnings in unconsolidated subsidiaries: this will be there when income is earned but not distributed back to the parent company‚ it should be subtract from net earning because no real cash flow
Premium Stock market Cash flow Finance
Based on the information released by Boeing‚ Exhibit 8 shows a detailed free cash flow forecast for the 7E7 project from 2004 to 2037. Based on the baseline forecast‚ the Internal Rate of Return (IRR) from this project is around 15.66%. Given the projected cash flow information from Boeing‚ please conduct the following analysis. 1) Please work through Exhibit 8 (spreadsheet) carefully to see how Mr. Bair forecasted the cash flows (you don’t need to answer this question‚ just check the spreadsheet
Premium Internal rate of return Net present value Cash flow
Radio one analsys 1) Why does Radio One want to acquire the 12 urban stations from Clear Channel Communications in the top 50 markets along with nine stations in Charlotte‚ NC‚ Augusta‚ GA‚ and Indianapolis‚ IN? What benefits and risks? The Reasons for acquiring the 12 urban stations from Clear Channel could be the following: - Bigger African American Base: It would draw more African-American listeners than any other radio broadcaster and cover more African-American households than any
Premium Discounted cash flow Free cash flow Cash flow
Fin/370 March 1‚ 2012 Farookh Syed Caledonia Products Integrative Problem Why should Caledonia focus on project free cash flows as opposed to the accounting profits earned by the project when analyzing whether to undertake the project? Ans: When analyzing whether to undertake a project‚ Caledonia needs to focus on free cash flows opposed to the accounting profits because free cash flows is revenue that can be used or reinvested in similar or future projects because it is money that has been received
Premium Generally Accepted Accounting Principles Depreciation Free cash flow
the instrumentality of specific measures were reached. For example Comcast compensation committee concluded that operating cash flow had the highest overall meaningful correlation to shareholder value over the long term. Also there are many metrics which help the company in aligning executives’ goals to its compensation policies. Metrics such as earnings per share‚ free cash flow‚ revenue‚ and return on invested capital connect compensation to company performance while total stockholder returns align
Premium Dow Jones Industrial Average Cash flow Stock
Subject: Fast-forwarding Blockuster Case Summary : Fast-Forwarding Blockbuster Blockbuster is the the world’s largest video rental company. The past few years have not been good ones for Blockbuster‚ because they have posted losses in 9 of the past 11 years‚ closed many stores and lost many customers to Netflix. One of the most important changes that Blockbuster did in order to remain competitive was to hire a new CEO‚ James W. Keyes who faced a similar situation as the former CEO of 7-eleven
Premium Customer Customer service Sales
to this area. The firm has $2 billion under management with 64 investments evenly split between venture capital investments and participations in leveraged buyouts. Importance of Terminal Value:Terminal value is the lump-sum of cash flows at the end of a stream of cash flows. It is important when trying to value a firm because that are present in the valuation of just about every asset and in the valuation of stocks and whole companies terminal value is usually a very big value driver. The importance
Premium Discounted cash flow Net present value Fundamental analysis
generate cash flows now and in the future. We address different aspects of this in detail throughout the book‚ but we can lay out three basic facts now: (1) Any financial asset‚ including a company’s stock‚ is valu- able only to the extent that it generates cash flows; (2) the timing of cash flows matters—cash received sooner is better; and (3) investors are averse to risk‚ so all else equal‚ they will pay more for a stock whose cash flows are relatively certain than for one whose cash flows are
Premium Stock market Finance Free cash flow