1% and its marginal tax rate is 35%. a. What is Lucent’s WACC? b. If Lucent maintains a constant debt‐equity ratio‚ what is the value of a project with average risk and the following expected free cash flows? c. If Lucent maintains its debt‐equity ratio‚ what is the debt capacity of the project in part (b)? part (b)? d. What is the free cash flow to equity for this project? e. What is its NPV computed using the FTE method? How does it compare with the NPV based on the WACC method? © 2011 Dr. Tanja Kirn – University of Liechtenstein –
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Diamond Chemicals PLC (A): The Merseyside Project Late one afternoon in January 2001‚ Frank Greystock told Lucy Morris‚ “No one seems satisfied with the analysis so far‚ but the suggested changes could kill the project. If solid projects like this can’t swim past the corporate piranhas‚ the company will never modernize.” Morris was plant manager of Diamond Chemicals’ Merseyside Works in Liverpool‚ England. Her controller‚ Frank Greystock‚ was discussing a capital project that she wanted to propose
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example‚ years ago the concept of going into a movie rental store such as Blockbuster was incredibly popular and considered to be of very popular interest. However‚ as the technology and interests have changed‚ the company has been rapidly losing its customer base causing sales to decline. The ways in which movies and video games are distributed to the customer has changed causing the stand alone stores‚ such as Blockbuster to lose popularity. The stores were located in convenient locations‚
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(2006-2007) & Outlook (2008) 4 Analysis of 2006 Statement of Cash Flows 5 Operating Activities 5 Investing Activities 6 Financing Activities 6 Pro-Forma Statements 2008 7 S&P / Caterpillar Comparison 9 S&P Index – Dividend Returns 9 Caterpillar – Dividend Returns 9 Cost of Common Stock Calculations 10 Summary Analysis 10 Appendix – Financial & Calculation Tables 12 Balance Sheet 12 Statement of Earnings 13 Cash Flows 13 Free Cash Flow 14 Economic Value Added 14 Market Value Added 14
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company plans to sell its properties‚ which should reduce asset size by INR 960mn and recover advances worth INR 1.1bn from trusts. This would lower the asset base by about 50%. Further‚ 1.5x property value of book assets would raise incremental cash flow of INR 1.45bn‚ reducing overall K-12 book value to just INR 300mn‚ which will be amortized over
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com/quote/EADS:IX Guru Focus http://www.gurufocus.com/term/Shares%20Outstanding/BA/Total%252BShares%252BOutstanding/Boeing%2BCo Ft http://www.ft.com/intl/companies Alpha http://seekingalpha.com/article/244271-boeing-free-cash-flow-analysis Wiki wealth http://www.wikiwealth.com/discounted-cash-flow-analysis:ba Businessweek Dream liner : http://business.time.com/2013/01/17/is-the-dreamliner-becoming-a-financial-nightmare-forboeing/#ixzz2JCRD2XIf Alpha http://seekingalpha.com/article/1125181-boeing-still-fairly-valued-despite-787-concerns
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The Paul Merage School of Business at UC Irvine | Financial Statement Analysis & Reporting: Earnings Quality and Asset Analysis | Company - WALMART | Kian BolooriHee Jun ChungDaejune Min | 1. Qualitative Analysis for the environment and the company (1) INDUSTRY ANALYSIS Walmart is in the discount retailer industry. This industry started in the 1950s‚ grew in the 1960s‚ and matured in the 1970s. With exception to a moderate growth period in the 1990s‚ the industry had remained
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References: Articles: Damodaran‚ A.‚ (2009)‚ Ups and Downs: Valuing Cyclical and Commodity Companies Damodaran‚ A.‚ (2008)‚ What is the risk free rate? A Search for the Basic Building Block Damodaran‚ A.‚ (2011)‚ Equity Risk Premiums (ERP): Determinants‚ Estimations and Implications Demirakos‚ E.‚ Strong‚ N.‚ Walker‚ M.‚ (2004)‚ What Valuation Models Do Analysts Use? Dimson‚ E.‚ Marsh‚ P.‚ Staunton
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Cemex Key points summary | |Cemex was originally founded in 1906 as Cementos Hidalgo and became Cemex (Cementos Mexicanos) after a merger | |Case Summary |with Cementos Portland Monterrey in 1931. Throughout the 1960’s‚ 70’s‚ and 80’s‚ Cemex expanded throughout | | |Mexico to gain a 65% share of the domestic market by the end of the 1980’s. Under the leadership of CEO Lorenzo | |
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Harris Seafood Answer the following questions a. Should Harris Seafoods enter the shrimp processing business by building the new plant? Please assume the firm will be unable to use the Industrial Revenue Bond financing mentioned at the end of the case (we will return to this topic in a later case). Yes‚ I think that this company should build a new plant that allows them to grow in the industry‚ even if they are unable to use the Industrial Revenue Bond‚ they will have other financing alternatives
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