finance the purchase with Financing Alternative #1 (debt and equity financing from an investment firm) or Alternative #2 (all debt financing from a bank). The financing alternatives are discussed on page 4 of the case. You should do the discounted cash flow valuation of the deal using Adjusted Present Value. The question is “What is Pinkerton worth to CPP (Wathen’s sole proprietorship)?” The value of Pinkerton to CPP is made up of three parts: 1. the value of Pinkerton as a stand-alone firm (but
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Introduction Butler Capital Partners (Butler) is an investment fund founded in 1990. Butler closed its first private equity fund‚ European Strategic Fund‚ in 1991. This first fund was mainly focusing on small family owned enterprises and on divisions of larger companies. Mainly of his first success he closed in 1998 his second fund‚ Private Equity II‚ and Butler became one of the largest independent funds in France. With his second fund he would focus on investments in France on a larger scale
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020‚000.00 Net income/ Accounting Profits $4‚356‚000.00 $8‚316‚000.00 $9‚900‚000.00 $5‚148‚000.00 $1‚980‚000.00 Cash flow $5‚956‚000.00 $9‚916‚000.00 $11‚500‚000.00 $6‚748‚000.00 $3‚580‚000.00 Additional net working capital -$100‚000.00 -$2‚000‚000.00 -$1‚500‚000.00 -$600‚000.00 $1‚800‚000.00 $2‚400‚000.00 Capital expenditure -$8‚000‚000.00 Free cash flow -$8‚100‚000.00 $3‚956‚000.00 $8‚416‚000.00 $10‚900‚000.00 $8‚548‚000.00 $5‚980‚000.00 Solution
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is the appropriate classification in the statement of cash flows in the company’s December 31‚ 2010‚ financial statements for its purchase of 2012 EAs from Clean Air Corp ? According to the FASB codification section 805-50-3-1-2‚ these allowance will be recognized as intangible assets at their cost. When a company buys any assets‚ the cash outflow due to purchase will be classified in the investing section of the statement of cash flows. Standard Accounting Entry for Purchase DR CR
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the effective rate). 1. Interest for 4M @ 11‚46992 is $45‚879‚680 Principle 80M @ 0.31180 is 24‚944‚000 PV would be 70‚823‚680 2. Cash is 70‚823‚680 Discount is 9‚176‚320 Bonds Payable is 80M 3.. Interest for 70‚823‚680 @ 6 is $4‚249‚421 Discount is 249‚421 Cash is 4M 4. Interest for 71‚073‚101 @ 6 is $4‚264‚386 Discount is 264‚386 Cash is 4M E 14–5: Bonds; issuance; effective interest; financial statement effects LO14–2 Myriad Solutions‚ Inc.‚ issued 10% bonds
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expenses. Without sales‚ warranty expenses do not occur. Reduction in warranties will reduce the sales dramatically and also the cash inflow. 2) Reduction in warranty expense might reduce the expenses as whole but it will increase the net income of the company with tax expenses. Taxes are always paid in cash so reduction in warranty expense will increase company’s cash outflow. 3) Company might need to provide better gaming software immediately as replacements to consumers. But with limited warranty
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Company Background 1. History of the Company 2. Company Products / Service and Clients 3. Organizational Charts / Divisions and Departments 4. Locale of the Study (with Map) B. Overview of the Current System C. Context Diagram of the Current System D. Data Flow Diagram of the Current System E. User Overview of the Current System F. Analysis of the Current System G. Operational Definition of Terms CHAPTER 2 FEASIBILITY STUDY A. Organizational and Cultural Feasibility B. Technological
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EXISTING POINT OF SALES BLOCK DIAGRAM PACKAGING OF ITEMS GENERATING RECEIPT (MANUALLY) COMPUTING OF TOTAL PRICE SEARCHING OF ITEM ORDER OF ITEM CONTEXT DIAGRAM ORDER OF ITEM SEARCHING OF ITEM COMPUTING THE TOTAL PRICE GENERATING RECEIPT (MANUALLY) PACKAGING OF ITEMS CUSTOMER PHARMACIST FIRST LEVEL DATA FLOW DIAGRAM 1 PLACE AN ORDER 2 SEARCHING OF ITEM PHARMACIST PACKAGING OF ITEMS CUSTOMER ITEM NAME ORDERED
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3.9.2 Data Flow Diagram (DFD) DFD or Data Flow Diagram is a graphical representation that showing the flow of data of information system. It also shows the structured design of the program to replace the flowchart or pseudo code as program tool. Basically DFD can be divided into four components such as entity or external entity‚ process‚ data store and data flow. DFD start with an overview of the system that needs to be designed. This DFD known as context DFD that contain the entity and the process
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CASE 2 Cash Flow Estimation and Risk Analysis Robert Montoya‚ Inc. Robert Montoya‚ Inc.‚ is a leading producer of wine in the United States. The firm was founded in 1960 by Robert Montoya‚ an Air Force veteran who had spent several years in France both before and after World War II. This experience convinced him that California could produce wines that were as good as or better than the best France had to offer. Originally‚ Robert Montoya sold his wine to wholesalers for distribution
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