Chapter 10 Stocks and Their Valuation Learning Objectives Solutions to End-of-Chapter Problems 10-1 D0 = $1.25; g1-3 = 6%; gn = 4%; D1 through D5 = ? D1 = D0(1 + g1) = $1.25(1.06) = $1.3250. D2 = D0(1 + g1)(1 + g2) = $1.25(1.06)2 = $1.4045. D3 = D0(1 + g1)(1 + g2)(1 + g3) = $1.25(1.06)3 = $1.4888. D4 = D0(1 + g1)(1 + g2)(1 + g3)(1 + gn) = $1.25(1.06)3(1.04) = $1.5483. D5 = D0(1 + g1)(1 + g2)(1 + g3)(1 + gn)2 = $1.25(1.06)3(1.04)2 = $1.6103. 10-2 = $1.35/(12%
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IFRS for Small And Medium Enterprises: How Is It Different And Is It necessary? Introduction To The IFRS For SMEs The IFRS (International Financial Reporting Standards) for SMEs is a self-contained standard of 230 pages‚ which was published on the 9th July 2009‚ designed to meet the needs and capabilities of small and medium-sized entities (SMEs)‚ which are estimated to account for over 95% of all businesses around the world. The standard is a result of a five year development process with
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PRINCIPLES OF VALUATION Because rational people prefer to receive benefits sooner than later and make sacrifices later than sooner‚ money‚ which provides the option to buy benefits‚ is likewise preferred sooner to later. If an individual prefers money sooner than later‚ then he/she values a dollar today more than a dollar tomorrow or a dollar in one year from now. A dollar today is worth a dollar today: therefore‚ a dollar next year must be worth less than a dollar today since it is less preferable/valuable
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Inventory Inventory is defined as “assets held for sale in the ordinary course of business‚ in the process of production for such sale‚ or in the form of materials or supplies to be consumed in the production process or in the rendering of services”. The cost of inventory is measured at the lower of cost and net realizable value. The IFRS accounting for inventory is generally converged with ASPE. The only difference between IFRES and ASPE in the accounting for inventory is with borrowing costs.
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Internationally‚ more than 100 countries have adopted International Financial Reporting Standards IFRS or IFRS equivalents‚ including all EU countries and major Asian countries such as Hong Kong and Singapore which have adopted IFRS almost in their entirety. (KPMG‚ 2006‚ pp.11) The adoption of IFRS in Australia through the Australian equivalents of International Financial Reporting Standards (AIFRS) since the beginning of 2005 has reflected how Australia is also part of global momentum for consistency
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Concepts of business valuation – Critical review of the Discounted Cash Flow (DCF) analysis and its applicability in today’s business world SEMINAR PAPER Table of contents page 1. Introduction...............................................................................................................3 1.1 1.2 2. The importance of business valuation ..................................................................3 Key indicators covered in this seminar paper .............................
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CHAPTER 7 Bonds Valuation CHAPTER ORIENTATION This chapter introduces the concepts that underlie asset valuation. We are specifically concerned with bonds. We also look at the concept of the bondholder’s expected rate of return on an investment. CHAPTER OUTLINE I. Types of bonds A. Debentures: unsecured long-term debt. B. Subordinated debentures: bonds that have a lower claim on assets in the event of liquidation than do other senior debtholders. C. Mortgage bonds: bonds
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IFRS 13 Fair Value Measurement applies to IFRSs that require or permit fair value measurements or disclosures and provides a single IFRS framework for measuring fair value and requires disclosures about fair value measurement. The Standard defines fair value on the basis of an ’exit price’ notion and uses a ’fair value hierarchy’‚ which results in a market-based‚ rather than entity-specific‚ measurement. IFRS 13 was originally issued in May 2011 and applies to annual periods beginning on or after
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GAAP/IFRS Financial Statement Comparison Through this course we have been taking a closer look into the Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). The book lays out the major similarities and differences between the two separate but equal accounting methods. I say‚ “Equal”‚ in the sense that the IFRS and GAAP accounting methods are two different ways that the any company that could come to the conclude the financial statements
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XYZ Company Limited Date Valuation Report: DUMMY Executive Summary INDUSTRY: XX XYZ Company Limited (hereinafter referred to as “XYZ” or “the company”) is a XX manufacturing company and markets its products under the brand name XX in the XX region of India. Business valuation summary of XYZ Multiple used EV/tonne method Equity value Rs mn Value per share (Rs) Rs 5‚809 per tonne EV/EBITDA method 4.5x Discounted Cash Flow method NA Book value (FY10) NA Equity
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