year is considered to have a 0.14% upside potential and synergies are estimated around 13% of Nokia’s average market capitalization. As a result‚ an offer at 19.4% premium over Nokia’s average market capitalization will be suggested with 100% in cash. 2 Acnowledgments The author would like to thank: Professor Peter Tsvetkov‚ the Dissertation Advisor‚ who has provided several thoughtful comments and an immeasurable help throughout the thesis. ; his friends‚ who provided assistance and
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• Internal rate of return • Modified internal rate of return • Equivalent annuity Here in our case‚ we have used Net Present Value or NPV‚ which is estimating the size and timing of all the incremental cash flows from the project. These future cash flows are then discounted to determine their present value. These present values are then summed‚ to get the NPV. The NPV decision rule is to accept all positive NPV projects in an unconstrained environment‚ or if projects are mutually exclusive
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Recommendation 3 2.3 Evaluation 3 3 Valuation Methods‚ Proposals and Discussion 6 3.1 Research into Valuation Methods 6 3.1.1 All-risks Yield 6 3.1.2 Discount Cash Flow (DCF) Techniques 6 3.1.3 Comparative Analysis Techniques 7 3.1.4 Pricing Structure 8 3.1.5 Profits or Accounting Methodologies 8 3.1.6 Evidence 8 3.2 Discussion of Proposals on Property Investment 9 4 Ownership Interest Valuation 10 4.1 Properties with Trading Potential
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09/05/2012 22th of May: ICampus: download case study + 6 questions (9am to 6pm end) Doyen A015 to A023 : we have the locals: tell him what we want (we have to book the locals) Entrepreneurial finance Different case studies cover the four parts (follow the IPO of Facebook) Project assessment: some toughts on business plan case studies: the knots and cachet tehnologies Introduction All these elements fits together. Business plan has to be written. Not a real predictor for success. People:
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share = Book value of equity / # of shares i. Current stock price: $51.07 (Yahoo Finance Stock Price as of date 9/21/12) j. Number of shares outstanding (p. 44 Balance Sheet) k. No preferred stock (given) l. Cash‚ short-term investments‚ & non-operating assets = (Cash & cash equivalents) + (Short-term
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similar to one used in the analysis. The average hypothetical net inflow of the sequel ($21.57M) is used to figure out the value of the state variable for the real options model. The state variable is the average hypothetical net inflow of the sequel‚ discounted using a WACC of 12.36% back to 1989. Discounting back to 1989 is important because this is the time of the first film’s release. Within several weeks of release‚ the film’s success is known. This starting point value is $13.53M. This state variable
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Corporate Finance 1. Finance point of view: Corporation: a money processing machine? * Product markets: everything what corporates make (lead with customers‚ suppliers‚ labor) * Capital markets: generic term for the entities which supply cash to this money processing machine‚ and the processing machine uses the money to do things and then periodic sends money back to the capital market there are inflows from the capital markets to the corporations and the money comes back out from to the
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aspects of receiving shares or cash from both the perspective of P&G and Gillette shareholders. Receiving Shares: P & G Positive-don’t need to give away cash on hand‚ doesn’t affect working capital‚ lowers risk because Gillette shares risk Negative-since it’s not affecting working capital company value could be off‚ earnings per each share issue go down Gillette Positive-tax advantage‚ share risk/reward with P & G Negative-liability incurred Cash: P & G Positive- shares will
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simple and straightforward pair of financial spreadsheets that can facilitate‚ streamline‚ and perhaps even standardize the capital budgeting process. The IAT evaluates the attractiveness of a potential investment by analyzing its associated cash flows [i.e. inflows and outflows]. A user need only enter a few key variables regarding the investment and the spreadsheet automatically analyzes its attractiveness. Three traditional investment appraisal methods are used by the IAT. They include:
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interpretation 6 2. Yield Curve 7 (a)What is the yield curve? 7 Shape of the yield curve? 7 Factors that affect the slope of the yield curve 8 (b) Yield curve graph 10 3. Valuation of the shares for Lloyds Company 11 Valuation Methods 12 Earnings based method 12 Asset based method 12 Discounted Cash flow methods i.e. (free cash flow or Dividend valuation method) 13 4. Evaluation of stock value results 14 Asset-based approach 14 References 16 APPENDIX 17 Appendix 1 17 Appendix 2 18 INTRODUCTION Lloyds banking
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