capitalization and belong to the same E&P sub-industry. Then‚ we downloaded financial statements and 10-Ks from Bloomberg. Last‚ we performed the comparable analysis (see Exhibit 1). Judging from the liquidity ratios‚ including current ratio‚ quick ratio and cash ratio‚ EPM has higher ratios than all the other comparable companies‚ which means EPM has better ability to pay off its short-terms debts obligations than its peers. Judging from the activity ratios‚ including receivable turnover and payable turnover
Premium Financial ratio Free cash flow Cash flow
and procedures used by clients and the accounting policies and procedures that should be followed. The audit memorandum also provides a clear explanation of a difference between the risk premium in discounting the free cash flow from Plant 3 and the risk premium in discounting the cash flows for the Macinaw Division and which of the appropriate discount rate for computation of goodwill impairment. The case mentioned about impairments which will be written down after the assets are tested for impairments
Premium Generally Accepted Accounting Principles Goodwill Depreciation
Bachelor Thesis Department of Business Studies Århus‚ the 3rd of May 2010 Valuation of BMW - Financial & Strategic Analysis Authors Rasmus Ramshøj Pløen Exam no. 282821 BSc (B/IM) Mikkel Kronborg Olesen Exam no. 283755 BSc (B) Academic Advisor Nicolai Borcher Hansen ASB Aarhus School of Business TABLE OF CONTENTS 1 PREFACE ..............................................................................................................................................................
Premium Free cash flow Weighted average cost of capital Financial statements
Analyst Re: Cash Flow Analysis and Capital Rationing Caledonia is a corporation who is interested in adding a new trending project to their project line. The project would only be in production for five years and the company has chosen team A to make an educated recommendation. Tem A will analyze the following: • Cash flow • Net present value • Internal rate or return The following analysis is provided to aid in the understanding of Team A’s final recommendation: Free Cash Flows The
Premium Cash flow Net present value Rate of return
financial ratios are taken into consideration in order to analyze the financial condition. At first we will discuss the company’s financial condition in four aspects‚ that is profitability‚ liquidity‚ liabilities and operation‚ and additionally the cash flow sheet is shown at the last of this part. Later we verify that BLC must borrow large amount of money to sustain the company’s development‚ and we calculate out the money scale is about $273.3 and $392.7 respectively in two different methods.
Premium Financial ratios Financial ratio Balance sheet
In this case study‚ we will talk about negotiate a possible acquisition of Flinder Valves and Controls. Inc by RSE International Corporation. To know why they gave that decision and how they could do it. We will have an overview of these two companies. 1. Overview of Flinder Valves and Controls. Inc and RSE International Corporation 1.1 Flinder Valves and Controls. Inc Flinder Valves and Controls. Inc (FVC) was an American company‚ located in Southern California. FVC was an outgrowth of
Premium Stock market Discounted cash flow Stock
is going to fund it with all equity? “The discount rate of a project should be the expected return on a financial asset of comparable risk” To estimate Sampa Video’s cost of equity capital we used the CAPM model‚ in which rf refers to the risk free rate‚ to the market risk premium‚ and β to the company Beta (Table 1). Since the Beta of the company wasn’t known‚ we decided to use an Industry Beta as a proxy. Kramer.com and Cityretrieve.com. are both competitors of Sampa Video in the business
Premium Net present value Cash flow Internal rate of return
Applied Corporate Finance Case: American Chemical Corporation The primary issue we are exploring here is the planned sale of the Collinsville Plant by American Chemical Corporation to Dixon at a negotiated price of $ 12 Million (as of end of year ‘79) Q1: Estimate the appropriate cost of capital for the investment To calculate the appropriate cost of capital we assessed Dixon’s purchase investment structure. The steps were as follows: 1. We first calculated the cost of debt of the investment using
Premium Net present value Free cash flow
with the following assumptions and partial spreadsheet (a few year are left out for readability purposes): The working capital investment starts from 1994 as described in exhibit 12. This can be seen in the above income statement so that the free cash flows become slightly different from 1994. Next the terminal value (TV) is calculated at different multiples (14‚15 and 16). This is shown in table x. The terminal value at different multiple is calculated by discounting at different discount
Premium Corporate finance Free cash flow Discounted cash flow
Increasing Gross Profit Margin (Preferably ≥ 40%) ROI Increasing high ROE (Preferably ≥ 15%) Increasing ROIC (Preferably ≥ 15%) Increasing CROIC (Preferably ≥ 15%) Liquidity Increasing Net Cash from Operations Increasing Free Cash Flow / Sales (Preferably ≥ 5%) Increasing Quick Ratio (Preferably ≥ 1) Short & declining Cash Conversion Cycle Efficiency Increasing Net Profit Margin (Preferably ≥ 10%) Increasing OCF/TA (Preferably ≥ 8%) 12‚053 928 29.9% 13‚718 945 30.4% 14‚904 1‚015 26.6% 18‚646
Premium Free cash flow Discounted cash flow Cash flow