Martin’s regression analysis different from/similar to traditional multiples analysis? 1.3. Do you agree with her interpretation of the regression analysis? 2. Consider the DCF analysis presented in Exhibit 7 Please describe the method of “Discounted Cash Flows” using case numbers and answer to the following questions: 2.1. How reasonable are Martin’s forecasts for EBITDA and her assumptions about the asset intensity of the business? 2.2. How plausible is Martin’s terminal value multiple? 2.3
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Do the circumstances surrounding the sale of the Collinsville plant play any role in your willingness to buy the assets? If so‚ how‚ if not‚ why not? On the one hand‚ the circumstances of the sale make me less willing to buy. In particular‚ both Universal and the federal government think that American’s acquisition creates antitrust issues. If this is the case‚ American could use its market power to change the nature of the market and make Dixon’s new plant unprofitable by setting lower prices
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1. How does Berkshire Partners create value? Berkshire partners believes in creating values “based on successful relationships‚ hard work‚ analysis‚ and the open decision making of all individuals” (Partners) They do not see the acquiring company as just a financial investment but as an investment in a relationship between two living entities. They work hard in collaboration with the acquired firm to do the analysis and research and consult all individuals in both firms regarding the future of the
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Ratios 7 Efficiency Ratios 7 Financial Strength Ratios 8 Dividend Ratios 8 Management Effectiveness Ratios 8 Discounted Cash Flow Valuation 9 Calculation of Weighted Average Cost of Capital 9 Cost of Equity Calculation 9 Pro Forma Financial Statements 10 Pro forma Profit and Loss Statement 10 Pro forma Balance Sheet 11 Proforma Cash Flow Statement 11 DCF using FCFF 11 Sensitivity Analysis 12 Results and Conclusion 12 References 14 Introduction to
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future growth of the organisation. One of the traditional methods commonly used for capital investment appraisal by some organizations is the payback method‚ although this method has been criticized by academicians that it does not include the future cash flow and do not measure profitability. The wide acceptance of this method by practicing managers‚ has called for investigation as why is the method is still popularly used in organizations. In this thesis work‚ we
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Course: project economics and evaluation Course code: C11PV Coursework title: Project Appraisal Student Number: H00152083 Lecturer: Dr. Esinath Ndiweni 1. Introduction The work is centred on the importance of project appraisal therefore emphasising on the financial and non-financial techniques of appraisal. The object and‚ therefore‚ the importance of a project appraisal is making an analysis to see whether the project is viable. It is vital to know whether a project is technically
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There are several reasons why AGI should consider Mercury Athletic as an appropriate target for acquisition. First‚ acquiring Mercury could improve both companies financially. Acquiring Mercury would double AGI’s revenue. Although Mercury’s financial performance has been disappointing‚ they experienced top line growth of 20% in 2006. Unfortunately‚ their profitability has been disappointing due to price concessions to big box retailers and an unsuccessful women’s line. Mercury’s (and ultimately
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Dow Chemical Case When Petroquímica Bahia Blanca S.A. (PBB) began the process of becoming privatized by the Argentine government‚ Dow Chemicals saw the acquisition of this company as a golden opportunity to become the leading polyethylene player in Latin America. Dow Chemical’s was already a major player in the chemicals (ethylene)‚ plastics (polyethylene)‚ and agricultural products industries holding position as a low-cost producer. Breaking each segment of their business down into
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NOVA SOUTHEASTERN UNIVERSITY H. Wayne Huizenga School of Business and Entrepreneurship Masters Programs FIN 5080 – APPLYING MANGERIAL FINANCE APPENDIX A– WEEKEND FORMAT INTRODUCTORY REMARKS: This syllabus comprises of two parts: 1) the MAIN Syllabus; and 2) the appendix that pertains to the format of your class (Appendix A = Weekend format; Appendix B = Day format; Appendix C = Online; and Appendix D = Week Night). Each class‚ regardless of format‚ will have a Course Website‚ which
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stations to minorities‚ and since only Radio One had the experience and the capital among the potential buyers it had a strong position. 2‚ What price should Radio One offer based on a discounted cash flow analysis? Are the cash flow projections reasonable? We decided to use the WACC method for the valuation of the new project‚ as * The new project was very similar to Radio One’s current operations * The project is not an LBO‚ and will trend towards a target capital structure * No
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