GENEVA BUSINESS SCHOOL Master of Science in Finance ********************* ASSIGNMENT Flinder Valves and Controls Inc. Case 43 Student: Nguyen Hoang Ngoc Anh Professor: Dr. John Heptonstall Subject: Strategy and Financial May 2011 NgocAnhNo1 1. Make a brief description of each company and its business activities . Flinder Valves and Control ( FVC) Flinder Valves and Control (FVC)‚ located in Southern California‚ was come from a small company organized in 1980 for engineering
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CIMA CASE STUDY 10th February‚ 2012 Ms.Burns 1.. describe what is meant by ‘cash flow’ Basically‚ cash flow is the movement of cash into and out of a certain business during a period of time. It is vital to keep in mind that cash flow does not affect the business’s revenue‚ and thus profit as well. Cash flow‚ as I have mentioned‚ is a ‘movement’ meaning that it can be both positive and negative. If the cash ‘inflow’ is higher than the cash ‘outflow’‚ it gives a positive net cash flow‚ which
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Year 0 2007 Investment Capital outley Δ Net Working Capital Cash outley NWC Investment Recovery Equipment Salvage NWC (full recovery) Sales Cost of Goods Sold (-) SG&A Expense (-) Opperating Savings (+) Depreciation (-) Operating Profit before tax (16‚000‚000) Year 1 2008 (2‚000‚000) 400‚000 (400‚000) Year 2 2009 Year 3 2010 1‚000‚000 (600‚000) 1‚000‚000 4‚000‚000 3‚000‚000 200‚000 2‚000‚000 3‚000‚000 (200‚000) 10‚000‚000 7‚500‚000 500‚000 3‚500‚000 3‚000‚000 2‚500‚000 10
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caused by the change in capital structure‚ we prefer to use TEV/EBITDA multiple in this case. Amtelecom Group consists of two lines of business which has to been taken into consideration. We separately calculate the value of both companies and their summation. In this way‚ we get a relative conservative outcome which indicates the Enterprise Value of AGI is 56.9 million (Note 1). As it is mentioned in the case that AGI’s current stock price implied a TEV of 53.7 million‚ the stock is really traded
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Depreciation is an expense that indicates the decrease in value of a fixed asset over a period of time. The cost price minus the asset’s depreciation calculates the carrying value of the asset. Depreciation is accounted for in order to know the carrying value of a vehicle and to help when determining the price at which the business should sell the vehicle. 2. F 3. Besides model‚ describe FOUR other factors that influence the price of a second hand car. - The price may be determined by the kilometers
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STATEMENT OF CASH FLOWS Problems Problem 11-1 |2003 sales |$8‚743‚000 | |Less: Change in accounts receivable | (70‚000) | |Cash generated from sales during 2003 |$8‚673‚000 | Problem 11-2 a. Issuance of a 12-month note in return for $2 million cash is a financing source of cash. Use of $2 million cash to purchase
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x 11.09% + 2‚965‚414/(16‚474‚521+2‚965‚414) x 8.68% x (1-34%) WACC = 10.3% Thus estimated WACC including the tax benefits from the shield is subsequently used to discount company’s free cash flows (FCF). [pic] Numerous assumptions are set in the process of calculating Netscape’s free cash flows. First we make a forecast about Netscape’s revenue growth for the entire period from 1995 to 2005 as we have based our assumption on the specific characteristic of the industry‚ company’s product
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Brewery is to calculate the Cash-flow-based valuation. With this method‚ the value of a firm’s equity is equal to the net present of future cash flow discounted with the weighted average cost of capital (WACC) minus debt. As we don’t have access to data’s in the case‚ we will presume data’s based on research. Future cash flows: $1850 million (cash flow received in 2004) * 562‚ 5% of average estimated future cash flow per year (based on the evolution of the cash flow between 2002 and 2004) = $10
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the upper hand in negotiations? Prior to looking at the offer price in more detail‚ do you think this will be a good deal for Disney in the long run? 3. Why did MVL management want stock vs. cash? 4. Using MVL’s historical financial statements (available on class website)‚ estimate MVL’s future cash flows using reasonable assumptions. Conduct a DCF analysis at
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Bidding for Hertz: Leveraged Buyout Case The dual-track process used by Ford to initiate “consideration of strategic alternatives” makes the bidding process for Hertz more difficult. The bidding group has to spend more time to gather more information required for the process. To be able to give out an acceptable price‚ which maximizes the value for Ford‚ the cost the group has to put to buyout is also higher. Longer time to collect the information means the group lose its competitive advantages
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