pro-forma cash flows for a project • Estimate project values using Net Present Value (NPV) • Conduct sensitivity analysis for the forecast inputs Setting • January 2001 • Customer offering attractive terms on 3-year lease for a capesize carrier • Would require purchase of new carrier since existing fleet does not fulfill customer needs • Should it be purchased? Industry Dynamics • Revenue Drivers • Outlook in the: – Short run – Next couple of years – Long
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Guide for Case Analyses “Ocean Carriers” Objectives of case: The key objective is to develop an understanding of how discounted cash flow analysis can be used to make investment and corporate policy decisions. 1. Determine the value and net present value of a real assets; 2. Distinguishing between book value and market value; 3. Identifying and forecasting incremental expected cash flows‚ including initial and ongoing capital expenditures‚ investment in net working capital‚
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Since the latter half of 2007 the world economy has been in a severe downward spiral as a result of the reckless lending practices of the world banks‚ the implications of which have trickled down into the industrialized economy over the last two years. This assignment aims to analyze the global seaborne trade industry with a focus on the dry bulk sub-sector and its major commodities by assessing the effect on factors that are influencing the demand and supply of dry bulk vessels and the future growth
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Features of a publicly traded company A publicly traded company‚ in essence‚ is a company that that trades its stocks in the public market. Examples of the public market are the stock exchange and over the counter market. A publicly traded company is also known as a public company. In a public company‚ the shares and stocks are not limited to a particular group of people; the stocks can be bought by anyone from the public. A public company is however required to have a minimum of two directors
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Corporate Finance Syllabus Spring 2009 Prof. Anna Scherbina UC Davis Graduate School of Management Office: 126 AOB IV Tel: 530.754.8076 e-mail: ascherbina@ucdavis.edu Course Focus We will explore how corporations make financial decisions through the analysis of Harvard Business School cases. Should a firm undertake a new investment opportunity‚ raise equity‚ acquire another firm‚ or conduct an IPO? How should small firms manage their working capital? How fast should a firm grow
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SUPPLY CHAIN OF IRON ORE With the increasing demand in iron ore due to rapid industrialisation and increase in demand of steel‚ the need for a proper distribution network or a supply chain has been realised. The following section takes into account the supply chain system of iron ore with some examples quoted from the Australia-China supply chain‚ which is one of the most important supply chains due to Australia being the largest exporter and China being the largest importer of iron ore. Logistic
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1. For what purposes does Mortensen estimate Midland’s cost of capital? What would be the potential consequences of a too high estimate compared to the firm’s “true” cost of capital? What about a too low estimate? The purpose is that the cost capital will be used for capital budgeting‚ financial accounting‚ performance assessment‚ stock repurchases estimations. Also the cost of capital is a necessary basis for the expected growth and forecasted demand. The too high estimated cost of capital means
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November 9‚ 2004 Mary Linn Vice President of Finance Ocean Carriers Re: 180‚000 DWT Vessel Proposal Dear Mary: Our analysis of the proposal for the construction of a new 180‚000 DWT vessel has brought us to the conclusion that the project should not be undertaken. Our recommendation and decision is based on a discounted cash flow analysis of expected future cash flows from the vessel that produced a net loss for the project of $7‚201‚639. Included in this recommendation are a number
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rate of $20‚000 growing at a pace of $200 per year of contract. Statement of the problem Many factors are to be considered such as the daily hire rate and operating cost trends‚ the supply and demand of iron ore and steel which form the 85% of capesize dry bulk carriers’ shipments. The headquarter location‚ on which the tax regime depends‚ is too a critical decision: while in Hong Kong the operations would be exempt from tax‚ they
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Department of Management‚ School of Business DEREE-The American College of Greece Semester/Session and Year: Fall Semester2013 MG4226A1: Shipping Management and Operations First summative assessment: Major Written Project Level 6 Student ID: 10/30/2013 Examine the current trends in Shipbuilding and S&P activity. Explain the rationale behind these trends; evaluate them in the light of current conditions in the freight market and assess their impact. Table of Contents 2|Page
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