Cement Industry …………………………………………………….. 4-5 3. The Yamama Saudi Cement Company…………….…………………………... 6 4. Company Valuation ……………………………………………………………... 7-11 4.1. The Free Cash Flow Model (FCF) ………………………………………... 7 4.2. The Dividend Discount Model (DDM) …………………………………… 8 4.3. The Discounted Cash Flow Model (DCF) ………………………………... 8-9 4.4. Key Indicators ……………………………………………………………... 9-10 4.5. Peer Comparison …………………………………………………………... 10-11 5. Conclusion ………………………………………………………………………
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power of suppliers‚ and the bargaining power of buyers. In analyzing Blockbuster’s business model and current position‚ it is evident that it faces issues in all five areas. Barriers to entry In the brick and mortar movie rental industry‚ Blockbuster is clearly the leader. With the merger of Hollywood Video and Movie Gallery‚ that leaves on two major players in the brick and mortar movie rental industry. Essentially‚ this has created many barriers for traditional mom-and-pop video stores to
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Cape Chemical Case: Cash and Profits Throughout history‚ the business community doesn’t necessarily think of a chemical‚ wholesale distributor‚ as having the ability to reach double-digit growth rates‚ all while revolutionizing the distribution process. But that is exactly what Cape Chemical has done. By offering “next day delivery‚” the company was able to differentiate itself from its competitors and gain a significantly larger market share than those same adversaries. But with the new increase
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Blockbuster became the dominant movie rental firm for a number of reasons. First and foremost in the early years‚ they were invested in by Wayne Huizeinga who infused the company with $18.5 million dollars and for a span of 7 years grew the company’s market capitalization at an annual growth rate of 118%. Once it started becoming large‚ it efficiently used economies of scale. It also had the most power to negotiate favorable deals with movie studios as opposed to mom and pop shops. Blockbuster
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Running head: Blockbuster Blockbuster Case Analysis Jane Doe BUSA‚ 3280 Strategic Management December 11‚ 2010 Blockbuster Case Analysis Blockbuster is a company that was started in Dallas‚ Texas in 1982. It was incorporated in 1985 and reported revenues of $5.5 billion in 2006. It is known as a leader with in-home movie and game rentals. In 2006 it launched a new way to rent movies by introducing a program that gives customers the option to exchange the movies through the
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the principles of capital budgeting to invest in growth and cash flow improvement opportunities in three phases over 10 simulated years. Each opportunity has a unique financial profile and you must analyze the effects on working capital. Examples of opportunities include taking on new customers‚ capitalizing on supplier discounts‚ and reducing inventory. You must understand how the income statement‚ balance sheet‚ and statement of cash flows are interconnected and be able to analyze forecasted financial
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author thanks National Science Council for financial support in this project‚ NSC96-2416-H-005-026. The Impact of two agency problems on the cost of capital Abstract We test the relation between the cost of capital and two agency problems‚ free cash flows and overinvestment in this paper. The empirical results show that both agency problems have significantly positive impact on the cost of capital. In addition‚ the incentives from stock-based compensation also have significant positive influence
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China Huiyuan Juice Group Limited On September 3‚ 2008‚ the Coca-Cola Company offered to buy China Huiyuan Juice Group‚ the nation’s largest juice maker (which is listed in Hong Kong)‚ for 17.92 billion Kong Kong dollars in cash. The acquisition was halted by Chinese regulator. On March 18‚ 2009‚ the Ministry of Commerce (MOC) announced that Coca-Cola’s bid to acquire Huiyuan failed to meet the country’s anti-monopoly law. Huiyuan gained 149 percent from the time before the offer announcement to
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Overview The footwear industry is a mature‚ very competitive with low growth and stable profit margins. Active Gear‚ Inc. is a privately held footwear company which is a profitable firm in the industry with $470.3 million revenue in 2006. West Coast Fashions‚ Inc is a large business of men’s and women’s apparel decided to dispose of one of their divisions: Mercury Athletic with $431.1 million revenue in 2006. AGI is very profitable but it is smaller than other competitors‚ which is becoming a competitive
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preferred measure and explain the rationale. Economic Value Added (EVA) A measure of a company’s financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis).(Also referred to as "economic profit".) The formula for calculating EVA is as follows: = Net Operating Profit After Taxes (NOPAT) - (Capital * Cost of Capital) Unfortunately‚ unless you are a company insider‚ it can be very difficult
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