Chapter-1: ABOUTCOMPANY 1.1 company background 1.2 management 1.3 promter&cmd 1.4 mission 1.5 vision 1.6 development 1.7 to Organisoon 1.8 to Myself 1.1 Company Background : R K Global was incorporated in year 1995 at New Delhi under the dynamic leadership of Shri Ramesh Kumar Bhagchandka‚ son of late Shri Lakhi Prasad Bhagchandka‚ a Bhagchandka group initiative. In 2007‚ R K Global shifted its registered office to Mumbai in Maharashtra. R K Global in the initial years
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Valuation models Discounted cash flow models: Dividend discount Free cash flow to the firm Residual income Multiples-based valuation: Price-earnings Value-EBITDA Value-EBIT Value-Sales Price-Book value Equity valuation In conjunction with the valuation of Coles Group‚ contained in “Excel03 Equity valuation” Real options valuation Equity markets price shares above the present value of expected future cash flows‚ due to the presence of embedded options not captured by DCF analysis Real
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being: * Impact on earnings per share * Payback Period * NPV of the project (Discounted Cash Flow method) * Internal Rate of Return Background Victoria Chemicals is a major competitor in the world wide chemical industry and a leader in producing polypropylene. Victoria Chemicals was under pressure from investors to improve its financial performance because of the accumulation of the firms’ common shares by corporate raider‚ Sir David Benjamin. Earnings had fallen to 180 pence
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Value is the current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate‚ and the higher the discount rate‚ the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to properly valuing future cash flows‚ whether they be earnings or obligations. Present Value of annuity is a series of equal payments or receipts that occur at evenly spaced intervals. Leases
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understand economic profit‚ it helps to distinguish between a performance metric and a wealth metric. A performance metric refers to a measure under company control‚ such as earnings or return on capital. A wealth metric‚ on the other hand‚ is a measure of value that - such as equity market capitalization or the price-to-earnings (P/E) multiple -depends on the stock market’s collective and forward-looking view. Now‚ although these two types of metrics are distinct‚ they are related. Every performance
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In proper capital budgeting analysis we evaluate incremental a. Accounting income. b. Cash flow. c. Earnings. d. Operating profit. Capital Budgeting is a part of: (a)Investment Decision (b) Working Capital Management (c) Marketing Management (d) Capital Structure A project’s average net income divided by its average book value is referred to as the project’s average: A. net present value. B. internal rate of return. C. accounting return. D. profitability index. E. payback
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weights for the WACC. 9. Explain how we adjust a project’s WACC for risk. 10. Understand the issues which arise when using the CAPM for calculating the cost of equity. 11. Be able to measure the cost of retained earning‚ and also be able to explain why retained earnings have a cost. 12. Understand the relationship between asymmetric information and flotation costs. 13. Understand the "Optimal Capital Structure" discussion in Web Extension 11B from the 12th Edition‚ posted on WebCT
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Business Finance Q: Please compare the advantages and disadvantages of the following investment rules: Net Present Value (NPV)‚ Payback Period‚ Discounted Payback Period‚ Internal Rate of Return (IRR) and Profitability Index (PI). (You can start by considering the following questions for each investment rule: Does it use cash flows or accounting earnings? Does it consider all cash flows or not? Does it apply a proper discount rate? Whether the acceptance criteria are clear and reasonable? In what
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The management of Cooper Industries‚ Inc.‚ is considering whether to acquire the Nicholson File Company‚ a leading manufacturer of hand tools. The Nicholson family and other members of the management group own about 20% of the Nicholson stock; the remainder is publicly held. From the standpoint of Cooper‚ an affirmative decision may involve Cooper in a bidding contest with two other companies‚ which have already purchased part of the outstanding Nicholson stock and made tender offers in an effort
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An Equity Valuation and Analysis of Kroger Co. As of November 1‚ 2007 Brandon Dunn Cliff Fielden Trey Keith Sean Murass brandon.dunn@ttu.edu cfielden2@yahoo.com trey.keith@ttu.edu murass02@yahoo.com 0 Table of Contents Executive Summary……………………………………………………………………..……………..4 Business & Industry Analysis…………………………………………………………….………..11 Company Overview………………………………………………………………………….11 Industry Overview……………………………………………………………………………13 Five Forces Model………………………………………………………………………………………15
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