MEMORANDUM DATE: TO: FROM: SUBJECT: Aquarius – Pub Valuation Overview The Greens are looking to sell Aquarius Ales‚ their pub located in Austin Texas as they are looking to fully retire and take up golfing and quilt making. Recently they have received their first offer to buy the business which was $450‚000 from Marc Johnston and John Sheridan‚ two University of Texas graduates who miss the college scene. The Greens are seriously considering the offer but feel that it
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Bancorp¶s estimates of the costs of debt and equity in case Exhibit 8‚which rating category has the lowest overall cost of funds? Do you agree with HudsonBancorp¶s view that equity investors are indifferent to the increases in financial risk acrossthe investment-grade debt categories?There is a general concept that higher rating category willhavethe lowest cost of debt. Butrating categories only give the information about the default risk and loss in case of companydefault. It does not guarantee the lowest
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Chapter 7: Analyzing Business Markets GENERAL CONCEPT QUESTIONS Multiple Choice 1. To create and capture value‚ sellers need to understand business organizations’ needs‚ resources‚ policies‚ and ________. a. demands b. protocols c. strategies d. buying procedures e. personnel policies Answer: d Page: 209 Level of difficulty: Easy 2. Webster and Wind define ________ as the decision-making process by which formal organizations establish the need for purchased products and
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Political Risk: 2. If Venerus implements the suggested methodology‚ what would be the range of discount rates that AES would use around the world? If Venerus and AES implement the suggested methodology‚ the projects would change while WACC changes. To find WACC we must first calculate the leveraged bets for each the US Red Oak and Lal Plr Pakistan projects‚ using the equation unleveled beta/(1-D/V). It is easy to find debt to capital ratios‚ which are 39.5% for U.S and 35.1% for Pakistan‚ and the
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Pepperdine University The George Graziadio School of Business and Management DUBOS J. MASSON FINC 624 BUSINESS VALUATION SUMMER II – 2015 Timken Co. Case Writeup Fatmah Alyami Wenting Yu Meshal Alyami Shengxu Li Tongkai Zhang Yuqing Zhang Timken Case WriteUp ● How does Torrington fit with The Timken Company? o What are the expected synergies? We believe that Torrington fits in with Timken Co. and this acquisition will generate positive operating synergies for Timken Co
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the Vodafone Case We start of with making the calculations for the premium that Vodafone is going to pay for Mannesmann. We know that Mannesmann will own 47.2% of the equity of the newly combined company. This is 47.2% from € 275 375 million‚ which is €129 997 million. Vodafone is offering 53.7 shares of the value of December 17‚ so € 4‚957‚ for every share of Mannesmann. Mannesmann has 517‚9 million shares‚ so Vodafone would pay 517‚9 million * 53‚7 * € 4‚957 = € 137 860.3 million. This would
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01 Chapter 43550 10/31/08 11:37 AM Page 34 Company Cases 34 Part One Chapter 1 | Defining Marketing and the Marketing Process 1 COMPANY Case Build-A-Bear: Build-A-Memory THE PRODUCT On paper‚ it all looks simple. Maxine Clark opened the first company store in 1996. Since then‚ the company has opened more than 370 stores and has custom-made tens of millions of teddy bears and other stuffed animals. Annual revenues reached $474 million for 2007 and are growing
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Torrington from Ingersoll-Rand. This reports provides the needed information on Torrington’s worth‚ price at which Torrington could be acquired and the acquisition strategies to negotiate its deal. The evaluation uses the discounted cash flow analysis using WACC to calculate the value of Torrington worth with synergies. The value turned out to be more than the estimated minimum value of the target. The final recommendation is to proceed with the acquisition as planed which would be beneficial to the Timken
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present day calculation. In order to properly calculate the cost of debt for Worldwide Paper Company‚ we calculated a new weighted average cost of capital using current market and company data. The formula for weighted average cost of capital‚ or WACC‚ is (% of debt on the company’s balance sheet multiplied by the after-tax cost of debt) + (% of equity on the balance sheet multiplied by cost of equity). To determine percentages of the debt and equity on
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method used is WACC Interest payments are not included. Net Investment is based on maintenance capital expenditure minus the depreciation related to Capex. Working Capital is based on the difference between current assets minus current liabilities. Working capital increases as sales revenues‚ in the calculation it is assumed that working capital is proportional to Revenue growth of 9%. Long term growth is 4% Company Tax Rate 35% Salary Growth is 10% Discount Rate Calculation WACC = E/V*Re + DV*Rd*(1-Tc)
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