Investment 2.1.3 Recommendation 2.2 Evaluation of West Coast (new equity offer) 2.2.1 Advantages 2.2.2 Disadvantages 2.3 Valuation of Creative Designs‚ Inc. 2.3.1 Capital Structure Argument 2.3.2 Weighted Average Cost of Capital Assumptions (WACC) 2.3.3 Cash Flows‚ Terminal Value‚ Equity Value Valuations 2.4 Pooling Implictions (Friendly + CD) 2.5 Friendly Cards Stock Valuation 3 Overall Assessment 4 Goals for the Financial Structure of Friendly Cards‚ Inc. --------------------------
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Consumer Understanding No company in the world has invested more in market research than P&G. We interact with more than five million consumers each year in nearly 100 countries. We conduct over 20‚000 research studies every year‚ and invest more than $400 million annually in consumer understanding. The insights we gain help us identify opportunities for innovation and better serve and communicate with our consumers. Innovation P&G is the industry’s innovation leader. Nearly all organic sales
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Examining the components of economic profit and studying the finer points of its calculation require an understanding of its underlying principles. Here we look at how it matters as a performance measure - which is distinct from a wealth metric - and how it is closely related to market value added (MVA). Finally‚ in establishing an overall picture of economic profit‚ we help you undo any perceived complexity by showing how all of the calculations surrounding economic profit originate from three main
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tradeoffs in using Multiples versus DCF analysis? DCF Valuation 1. Forecast revenue for each year for from the firm’s financial data. 2. Select appropriate discount rate based on WACC 3. Discount each cashflow back to it present value 4. Obtain the terminal value through an application of terminal value multiple 5. You add these values together 6. Using this method‚ Martin calculates the price of Cox’s share to be $54.29 Multiple Valuation: 1. Identify comparable firms that have growth‚ cashflow
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note that describes how to apply the Discounted Cash Flow method of Company Valuation in companies undergoing corporate restructuring. The concept is based on the change in shareholders wealth as a direct result of the change in the firm’s value- which depends on multiple factors including corporate restructuring. The note describes in details about the technical aspects of the DCF method. First it defines the DCF as a sum of the PV of all expected future cash flows and how every method identifies two
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Entrepreneurial Finance Philippe Gregoire Louvain School of Management – Université catholique de Louvain Reference book : Entrepreneurial finance‚ a casebook. Paul A. Gompers and William A. Sahlman. John Wiley & Sons‚ Inc. 2002 1 Entrepreneurial finance Project assessment (POCD) Funding (amount‚ firm’s value‚ best partner) Deal (ownership / control / incentives) Exit (IPO) Project Assessment • 4 critical success factors for entrepreneurial ventures People Opportunity
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simply taking a look at the balance sheet and income statement and figuring out what’s total assets and total liabilities. A discounted cash flow analysis is one of the main ways investors can value a company. The idea of the actual valuation is to project future cash flows and discount them to see what would be their present value 10 years from now‚ for example. These cash flows then affect the stock price which an investor would compare to the current stock price to see if the company is undervalued
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and methods of analysis. Shareholders are deemed as the owners of the business. Their main aim is to increase their wealth‚ finance managers are employed to achieve this aim. In order to maximise shareholder wealth it would mean “Maximising the flow of dividends to shareholders through time – there is a long term prospective” (Arnold‚ 2005) Finance managers are employed by organisations to look after and increase shareholder wealth‚ the role of a financial manager can be seen through looking
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value to Seagate ’s large and market-leading disk drive business. Determine a buy-out price for the disk drive division of Seagate The discounted cash flow model provides a way to take into account a company ’s future growth predictions (Exhibit XX). Using the scenarios projected by Seagate management and Morgan Stanley‚ we calculated the future free cash flows for the company‚ and brought it back to NPV using the company’s weighted average cost of capital (WACC). The WACC calculated uses information
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Produce individual modules Testing and auditing Protection as an application Documentation Financial Modelling in Excel (2 Days) (A) Corporate Financial Statements 1. 2. 3. 4. 5. 6. 7. 8. Profit and Loss Account Balance Sheet Financial Ratios Cash flow statement Identify the information contained in the three main financial statements Basic concepts - NPV‚ IRR‚ Amortization‚ Debt repayment‚ etc. Ratios used in long and short term risk return analysis - DSCR etc. Making and analyzing projected financial
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