Valuation of Goodwill: 1) Hitesh and company decided to purchase a business. The profits for the last four years are: 2006-Rs.60‚000 2007-Rs.75‚000 2008-Rs.72‚000 2009-Rs.69‚000. The business was looked after by the management. Remuneration from alternative employment if not engaged on the business comes to Rs.9000 p.a. Find the amount of goodwill‚ if it is valued on the basis of 3 years purchase of the average net profit for the last four years. 2) Following particulars are available in respect
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is reasonable to use the company’s average cost of capital as a basis for the evaluation. A company’s securities typically include both debt and equity‚ one must therefore calculate both the cost of debt and the cost of equity to determine a company’s cost of capital. However‚ a rate of return larger than the cost of capital is usually required. The cost of debt is relatively simple to calculate‚ as it is composed of the rate of interest paid. In practice‚ the interest-rate paid by the company can
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Name: John Carlo T. Gasic Course/Year/Section: BSCE 1G Instructor: Rosell A. Manzano Date: September 06‚ 2013 Drawing Instruments and Uses Drawing Instruments are used to prepare neat and accurate Drawings. To a greater extent‚ the accuracy of the Drawings depend on the quality of instruments used to prepare them. Drawing Board: Drawing board is made from strips of well seasoned soft wood generally 25 mm thick. It is cleated at the back by two battens
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in the plaintiffs’ favor. In December 2011‚ Pershing settled the majority of the cases. Lyondell Litigation As previously disclosed‚ in an action filed in New York State Supreme Court for New York County‚ on Sept. 14‚ 2010‚ plaintiffs as holders of debt issued by Basell AF in 2005 allege that The Bank of New York Mellon‚ as indenture trustee‚ breached its contractual and fiduciary obligations by executing an intercreditor agreement in 2007 in connection with Basell’s acquisition of Lyondell Chemical
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12/10/12 BMGT 443 McDonalds Valuation Project Write Up To begin the economic analysis of McDonalds‚ we must first look at the company beta. McDonalds has a beta of .34 meaning it is not as volatile when compared to the market and can be categorized as a low risk stock. To determine that financial impact of changes in economic conditions to the performance McDonalds‚ three economic indicators must be evaluated. The leading economic index (LEI)‚ coincident economic index (CEI)‚ and lagging
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Membranous | | | This instrument is Indian equivalent of the African instrument Djembe. It has membrane on only one side and has a typical torch shaped body. It is used for accompanying certain folk dances. | | | | | Dumroo is probably the oldest form of percussion instrument in India. It is the only remaining form of hour-glass drums which are so commonly seen in ancient Indian statues. Its musical role is minimal and it is most commonly known for its association with Lord
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CHAPTER 4 BONDS ANND THEIR VALUATION Bond value--semiannual payment 1. You intend to purchase a 10-year‚ $1‚000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding‚ how much should you be willing to pay for this bond? N = 20 I/Y = 5 PV = -1124.62 PMT = 60 FV = 1000 Bond value--semiannual payment 2. Assume that you wish to purchase a 20-year bond that has a maturity value of $1‚000 and makes semiannual
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3.7 Research Instrument and Construct Instruments 3.7.1 Questionnaire Research point out that if the researcher is using the postal survey to do research‚ so the convenient option will be a questionnaire. If the sample is huge and widely dispersed‚ it is better to use questionnaire because it is cheaper and faster compares to personal interviewing. Generally‚ postal surveys inclined to have lower response rate compare to telephone interviews or face-to-face. But if the questionnaire with a covering
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UVA-F-1415-SSRN v 1.2 JETBLUE AIRWAYS IPO VALUATION My neighbor called me the other day and she said‚ ’You have an interesting little boy. ’ Turns out‚ the other day‚ she asked my son Daniel what he wanted for Christmas. And he said‚ ’I want some stock. ’ ’Stock? ’ she said. ’Don ’t you want video games or anything? ’ ’Nope‚ ’ he said‚ ’I just want stock. JetBlue stock. ’ --David Neeleman‚ CEO and Founder‚ JetBlue Airways It was the first week of April 2002‚ barely two years since the first
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2 MODELS FOR THE VALUATION OF SHARES. 2.1 The concept of a cost of equity The cost of equity is the cost to the company of providing equity holders with the return they require on their investment. The primary financial objective is to maximize the return to equity shareholders. This return is as the future dividend yield and capital growth. Until new shareholders become members of the company‚ the objective above is concerned with existing shareholders. Company management will need to offer
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