Royal Asset Package Valuation DCF Valuation EBITDA - Depreciation EBIT - Taxes on EBIT + Depreciation - Capex - WK FCF Wacc Enterprise Value + Terminal Value + working capital Total EV (31/12/1983) EV/EBITDA 1984 EV/EBITDA 1985 EV/EBITDA avg. Terminal Value Growth Capex = Depreciation Monticello Mill financials Revenues Annual Capacity Utilization rate Tons Price per ton EBITDA margin Box Plants financials Revenues EBTIDA margin Combined Package financials Revenues EBITDA margin Depreciation EBIT
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Case Analysis: Dimensional Fund Advisors 1. Describe the philosophy of DFA. What sort of market behavior are they counting on? DFA believes in three principles: 1. The Efficient Market Theory. That is‚ the stock market is efficient and no one has the ability to consistently pick stocks that will beat the market. Over any given period‚ some lucky investors will outperform the market while others will underperform. DFA felt that the market price of any firm’s stock incorporated all public information
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LMVTX Legg Mason Capital Management Value Trust Table of Contents Executive Summary Over a period of 15 consecutive years from 1991 to 2006‚ Miller’s Legg Mason Value Trust (LMVTX) was able to outperform the S&P 500. In the recent 22 years‚ there were two non-ideal periods of LMTVX. The first one was during the bear markets of early 2000s (from 2000 to 2002) caused by the crisis of tech companies and the 911. The 2nd one started from 2006 to 2009 during the world economic recession
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hurdle rate? Teletech currently uses the hurdle rate in the assessment of the firm’s economic profit and NPV. The rate is based on an estimate of Teletech’s WACC. Currently‚ the hurdle rate for Teletech is 10.407%‚ using data in Figure 1. The case rounds this number to 10.41% 2. What are the segment WACCs for Teletech? What assumptions do you have to make to do these calculations? Using the data in Figure 1‚ we can calculate the WACC for the Telecom Services division and the Products
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Introduction: (Luz’s answer for discussion question #1 should go here) Analysis: Based on her calculations‚ Joanna Cohen estimated that Nike’s cost of capital was approximately 8.4%. Ms. Cohen used a single Weighted Average Cost of Capital to calculate the firm’s cost of capital‚ and we agree that only a single cost of capital needs to be used due to the similarities between more than 95% of their revenues. However we believe that the cost of capital calculation is inaccurate based on some
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I. Summary: The Teletech Corporation is a U.S company that provides integrated information movement and management. It has two main business divisions‚ which are The Telecommunication Services‚ and The Products and Systems. In Telecommunication Services division‚ it primarily provided many kinds of phone service to business and residential customers. In fact‚ it performed a network for 7 million customer lines throughout Southwest and Midwest. The division archived an increasing average rate of 3%
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Facts: The Negro plaintiffs in these cases were denied admission schools attended by the white children under the laws requiring or permitting segregation according to race. All the court adhered to the “separate but equal” doctrine and held that the plaintiffs were not admitted to the white schools (except for the plaintiff in the Delaware case). In the instant cases‚ the plaintiffs contend that segregated public schools are not “equal” and they are deprived of the equal protection of the laws.
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Long Term (discounted) $416.72 $1‚277.42 = 10.05% weight Equity $11‚427.44 = 89.95% weight Cost of Debt YTM on 20 year Nike Inc. Bond = 7.51% Cost of Equity (CAPM) Rf + B(Rf- Rm) *Rf= 5.74% (20 year yield in US T-bill) *Beta= .8 = 10.46% WACC Wd*Kd(1-T) + WeKe = 10.05%*7.51% (1-38%) + 89.95*10.46% = 9.8767% DDM = (Do(1+g)/Po) + g = (.48(1+.055)/$42.09) + .055 = 6.70% Earnings Capitalization Ratio = E1/Po = 232/42.09 = 5.51% I don not agree
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Pepsi Cola Products Philippines‚ Inc. (petitioner) v. Honorable Secretary of Labor (respondents) 1. Facts: a. June 1990: The Pepsi-Cola Employees Organization-UOEF (Union) filed a petition for certification election with the Med-Arbiter seeking to be the exclusive bargaining agent of supervisors of Pepsi-Cola Philippines‚ Inc. (PEPSI). i. Med-Arbiter granted this stating that PCEU-UOEF was an affiliate of Union de Obreros Estivadores de Filipinas (or the Federation) with two (2) rank and file
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identifying and rewarding performance. * There was general agreement among employees that rewards for excellent performance were not adequate: outstanding performers got salary increases that were‚ in many cases‚ only marginally better than those given to average performers. In many cases outstanding performance was not even clearly identified. * Complaints include: managers are afraid to give experienced people lower ratings‚ it is impossible to get a 5‚ there is no point in working hard because
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