is interested in the value of Casselden Place. He has specified that two valuation methods be used to find out which has the more accurate valuation. Casselden Place is located in Melbourne’s CBD on the corner of Lonsdale Street and Spring Street. There are 40 levels above ground as well as another three below ground. Valuation Details Here insert specific details of the client‚ the purpose of the report‚ date of valuation‚ date of inspection‚ interest held‚ interest being valued and registered
Premium Real estate Discounted cash flow Real estate appraisal
investment√. Non-discounted cash flow method means that the cash flows will not be discounted‚ that is‚ the present value concept is not applied√. Timing of the cash flows does not make any difference to the evaluation√. Discounted cash flow means that cash inflows and cash outflows will be discounted according to the time value of money concept√. Different timing of returns will give different values. Two examples: Non-discounted cash flow; Payback period and ARR√√ Discounted cash flows; NPV‚ IRR discounted
Premium Net present value Generally Accepted Accounting Principles Discounted cash flow
Exercises 1. Synergy Valuation a. Cost and revenue synergies Managers of an acquiring company anticipate cost savings pretax of $50 million in the first year of the deal and $100 million the next and that thereafter the savings would grow @ inflation‚ 2%. Marginal tax rate is 30%. The firm must invest $1 billion to achieve these savings and starting in the third year must spend 5% of the pre-tax savings to sustain the rate of savings. As part of rationalization of operations‚ some assets will be
Premium Revenue Cash flow Stock
10 Cross Sectional Analysis 14 2.6 SWOT Analysis 15 3. Growth Strategy Options 16 3.1 Scenario A 16 Strategy 16 Cost of Capital 18 Funding Strategy 18 Project Evaluation 19 3.2 Scenario B 20 Strategy 20 Capital Structure 21 Valuation 22 3.3 Recommendation 22 References: 23 Appendix 1.1- Company Profile 25 Appendix 1.2 – Product Reviews 26 Appendix 1.3 Target Market 27 Appendix 1.4 - Corporate Governance Analysis: 31 Appendix 2.1 - Competitor Analysis: 35 Appendix
Premium Balance sheet Board of directors Financial statements
EPPM3644 KEWANGAN KORPORAT DAN PENSTRUKTURAN SET: 3 REPORT OF CASE STUDY: CASE 19 WORLDWIDE PAPER COMPANY PROFESSOR: DR. LIZA MARWATI BINTI MOHD YUSOFF GROUP MEMBERS: LOH CHAI LING A140178 GOH HOOI SAN A139708 KERK (KEH) YIH JEN A139574 SEMESTER 2‚ 2013/2014 INTRODUCTION In December 2006‚ Bob Prescott‚ the controller for the Blue Ridge Mill‚ was considering the addition of a new on-site longwood woodyard. Two primary benefits for this new addition include eliminating
Premium Net present value Cash flow Discounted cash flow
Profitability Ratios: How Profitable is the Company? Net sales/Net profit after taxes The information necessary to determine a company’s profit as a percentage of sales can be found in the company’s income statement. 1. Magnetronics’ profit as a percentage of sales for 1999 was $1‚307 divided by $48‚769‚ or 2.68%. 2. This represented a decrease from 3.6% in 1995. 3. The deterioration in profitability resulted from a decrease in cost of goods sold as a percentage of sales‚
Premium Financial ratios Generally Accepted Accounting Principles Balance sheet
Market Information Lab CIQ202 PREREQUISITES • Capital IQ 101 – Tearsheets – Screening – Formula Builder – Excel Plug-in January 31‚ 2012 © Margolis Market Information Lab CIQ202 AGENDA • Mergers and Acquisitions • • • Valuation Capital IQ Screening Applications of Capital IQ Screening January 31‚ 2012 © Margolis Market Information Lab CIQ202 MERGERS AND ACQUISITIONS • Mergers and acquisitions significantly influence financial markets – Deals can range from
Premium P/E ratio Financial markets Fundamental analysis
within the range for a BBB “investment grade” debt rating. The combined entities‚ Torrington-Timken‚ would produce an interest coverage ratio of 3.2‚ and a debt ratio of 45%‚ again within the range for a BBB “debt rating. The purchase would likely be a cash transaction. History Founded by carriage-maker Henry Timken in 1899 in St. Louis‚ Missouri‚ the Timken Company was originally incorporated as The Timken Roller Bearing Axle Company. In the previous year‚ Timken had received a patent
Premium Discounted cash flow Weighted average cost of capital
expansion‚ market expansion by introducing new products‚ etc) Determining the Debt-to-equity Ratio For many business‚ a debt/equity ratio from 1:1 to 2:1 is considered satisfactory. The debt burden must also be weighed in relation to the profitability‚ cash flow and product or service cycle that determine the company’s ability to service the obligation. Main sources of equity 1. Personal Assets‚ close friends‚ relatives 2. Angels 3. Government Programs 4. Industry 5. Venture Capital 6. Strategic Partnering
Premium Internal rate of return Discounted cash flow Cash flow
Market Prices and the Valuation Principle 3.3 The Time Value of Money and Interest Rates 3.4 Valuing Cash Flows at Different Points in Time Copyright © 2012 Pearson Education. 3-2 Learning Objectives • Identify the role of financial managers and competitive markets in decision making • Understand the Valuation Principle‚ and how it can be used to identify decisions that increase the value of the firm • Assess the effect of interest rates on today’s value of future cash flows • Calculate the
Premium Net present value Cost Discounted cash flow