Expenditures for a large project often in these phases. The final step in the process will be the follow-up stage. Results are monitored and tell the actual outcomes. Sunk cost and Opportunity Cost Doing the time of estimating the relevant cash flows associated with a proposed capital expenditure‚ the firm must recognize any sunk cost and
Premium Net present value Cash flow Internal rate of return
Business School case studies and will focus on learning techniques of financial analysis‚ selecting an appropriate valuation model‚ analyzing the quality of financial data‚ finding an appropriate discount rate‚ and forecasting financial variables and cash flows. Corporate Finance course is strongly suggested as a prerequisite. Consult with faculty if this can be waived. Course Materials Textbooks: 1. Principles of Corporate Finance by R.A. Brearly‚ S. Myers‚ and F. Allen‚ 10th edition* 2. Analysis for
Premium Corporate finance Net present value Finance
Dalal & Broacha Stock Broking Pvt. Ltd. . . . . . . . . . . Initiating Coverage @ Dalal & Broacha Tata Elxsi Ltd. September 12‚ 2012 multiple triggers ahead .... BUY Current Pri ce Target Price Upside 52 Week Range KEY SHARE DATA Market Cap EV / Sales EV / EBIDTA Volume (BSE + NSE) No of o/s share mn Face Value Book Value BSE / NSE Reuters Bloomberg Shareholding (%) Period Promote rs MF / Ba nks / FI FII Publ i c & Others Total 130 120 110 100 90 80 70 60 50 Apurva Shah (Research
Premium Revenue Cash flow
International Trade Licensing Franchising Joint Ventures Acquisitions of Existing Operations Establishing New Foreign Subsidiaries Summary of Methods Valuation Model for an MNC Domestic Model Valuing International Cash Flows Uncertainty Surrounding an MNCs Cash Flows Uncertainty of an MNCs Cost of Capital Organization of the Text Chapter Theme This chapter introduces the multinational corporation as having similar goals to the purely domestic corporation‚ but a wider variety of opportunities
Premium Foreign exchange market United States dollar Currency
type of information. This paper will discuss four different types of financial statements and how they are utilized by vendors‚ creditors and others. The four financial statements that will be reviewed are the income statement‚ balance sheet‚ cash flow statements and statement of retained earnings. Income Statement Beginning with the income statement‚ the information provided includes the amount of revenue that the company earns over a certain period of time. The period of time is usually a
Premium Generally Accepted Accounting Principles Balance sheet Income statement
indicate how liquid the firm is. J.B. Chavez Corporation’s current ratio has increased across years from 2008 to 2009 and both years’ current ratio are higher than the industry norm. It shows that the corporation has enough current assets to convert into cash to meet short term obligations. However‚ the quick ratio has decreased across years from 2008 -2009‚ and the ratio is lower than the industry norm. This means that the corporation has kept a lot of inventories which are the least liquid current assets
Premium Generally Accepted Accounting Principles Balance sheet Cash flow
Sys 47 out of 267 SUMMARY DATA 52-Week High 52-Week Low One-Year Return (%) Beta Average Daily Volume (sh) Shares Outstanding (mil) Market Capitalization ($mil) Short Interest Ratio (days) Institutional Ownership (%) Insider Ownership (%) Annual Cash Dividend Dividend Yield (%) 5-Yr. Historical Growth Rates Sales (%) Earnings Per Share (%) Dividend (%) P/E using TTM EPS P/E using 2013 Estimate P/E using 2014 Estimate Zacks Rank *: Short Term 1 3 months outlook * Definition / Disclosure on last
Premium Revenue IBM Cash flow
regression is Y = 1‚559 + 254 T 2. In general‚ in exponential smoothing the forecast for t + 1 is Ft + 1 = Ft + α et Where Ft + 1 = forecast for year ) α = smoothing parameter et = error in the forecast for year t = St = Ft F1 is given to be 2100 and α is given to be 0.3 The forecasts for periods 2 to 14 are calculated below: Period t Data (St) Forecast (Ft) Error (et St =Ft) Forecast for t + 1 (Ft + 1 = Ft + α et) 1 2‚000 2100.0 -100 F2 = 2100 + 0.3 (-100)
Premium Net present value Cash flow
References: 2. Peter Atrill and Eddie McLaney (2011): Accounting and Finance for Non-Specialists‚ 7th edition‚ Financial Times/ Prentice Hall. Journal Articles; 3. Friedrich A.Lutz (1945): Corporate Cash Balances‚ 1914-43: Manufacturing and Trade. Liquidity Ratios and Cash Balances.[Online] ISBN: 0-870-14136-8. Available from http://www.nber.org/chapters/c4822.pdf [Access: 12 December 2013] 4 5. Rich Brott (2007): The Financial Benefits of budgeting. [Online] Available from http://www
Premium Net present value Cash flow Internal rate of return
Problems 1. What is the net present value of a project with the following cash flows and a required return of 12 percent? Year 0 1 2 3 Cash Flow -$28‚900 $12‚450 $19‚630 $ 2‚750 2. What is the net present value of a project that has an initial cash outflow of $12‚670 and the following cash inflows? The required return is 11.5 percent. Year 1 2 3 4 Cash Inflows $4‚375 $ 0 $8‚750 $4‚100 3. A project will produce cash inflows of $1‚750 a year for four years. The project initially costs $10
Premium Net present value Cash flow