Mini Case 3 The Merger between Youku and Tudou Basic Information of Tudou Items | Data | Yield on US long-term government bonds | 3.50% | Risk premium | 7.50% | Beta of Tudou | 1.35 | Required return rate of equity | 13.62500% | Required return rate of debt | 7.50% | Leverage ratio | 0.2 | Weighting of debt | 0.2 | Weighting of equity | 0.8 | Marginal tax rate | 25% | Growth rate | 6% | WACC | 12.025% | Number of shares | 91 | The required return rate of equity:
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Capital‚ a company that acquired undervalued targets with strong market niches. When evaluating the takeover bid offered by City Capital Associates‚ the board of Interco was advised by Wasserstein Perella and Co. (WPC). Based on Wasserstein Perella’s comparable
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Transfer Pricing In India 1 Transfer Pricing 2 a) What is transfer pricing? 2 2 Transfer Pricing in India 3 a) Definition 3 b) Associated enterprises 4 c) International transactions 4 d) Arm’s length transaction 4 1. Comparable uncontrolled price method 4 2. Resale price method 5 3. Cost plus method 5 4. Profit split method 6 5. Transactional net margin method (TNMM) 6 6. Any other method prescribed by the board 6 e) Maintaining Documentation 6 f)
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1. Assess Interco’s financial performance. Why is the company a target of a hostile takeover attempt? Interco’s overall financial health is relatively healthy. It is highly-liquid as the current ratios are consistently over 3.5‚ showing that it has plenty of cash to cover any of its current liabilities. Its accounts receivable days indicate that in 1987 it took longer to collect on outstanding accounts while this figure would drop in 1988. The same trend follows with its inventory days‚ increasing
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Congoleum Corporation Executive Summary In valuing the target company Congoleum after an LBO by First Boston found the expected free cash flows generated by this firm from 1980 to 1984. These numbers were based on values provided in the case. From there‚ we employed the Adjusted Present Value method to discount these cash flows because we assumed that Congoleum was varying its Debt to Equity ratio during those years. We discounted these cash flows by the required return on assets that was in
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states that addiction is similar to any other disease that can affect the human body and psyche. In addition‚ the disease model of addiction states that addiction‚ like most diseases‚ have an established collection of symptoms that apply to all in a comparable manner. With this theory‚ the “disease” is progressive and fatal with genetic‚ psychosocial and environmental factors that influence the progression and
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Inditex Valuation IE business school 7/24/2013 1. Background 1.1 Company overview Inditex is one of the world largest fashion retailers with more than 5‚500 stores in 86 countries. The most famous brand that Inditex owns is Zara which opened its first store in 1975 in A Coruña‚ Spain. Besides Zara‚ Inditex also owns brands such as Pull&Bear‚ Massimo Dutti‚ Bershka‚ Oysho‚ Zara Home and Uterque. The growth of this company has been dramatically strong and steady for more than 10 years
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alike. It is more than likely that this cost which is close to double that of the Ruger Precision is due to the aluminum construction along with the chrome lined barrel and a little of the FN name. It comes standard with a Magpul adjustable stock comparable to the Ruger Precision’s without the comb adjustment. It also has a muzzle break and a Magpul P-MAG stock along with the Ruger. Its chrome lined barrel is measured at 18”‚ two inches shorter than the Ruger and 39” overall length. The forward guard
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jurisdictions.” Over 60 governments have adopted transfer pricing rules.[1] Transfer pricing rules in most countries are based on what is referred to as the “arm’s length principle” – that is to establish transfer prices based on analysis of pricing in comparable transactions between two or more unrelated parties dealing at arm’s length. The OECD has published guidelines based on the arm’s length principle‚ which are followed‚ in whole or in part‚ by many of its member countries in
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1. Based on prices for comparable transactions‚ how would you assess the reasonableness of the Bet Performers $133 million purchase price in May 2008? To value a ship using the market approach‚ one had to identify a set of “comparable” ships where comparability was based on four main factors: ship type‚ size (DWT)‚ age‚ and condition. According to Exhibit 3‚ there are five ships which are the most comparable to Bet Performer. They are Martha Verity‚ Ingenious‚ Sumihou‚ Cape Sun‚ and Coppersmith
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