Negotiation Report 1. Executive summary Amoco was actively cooperating and negotiating with BP on the merger issue. Based on Amoco’s stand-alone valuation‚ it was reasonable to estimate $47 million enterprise value and $41.5 million equity value‚ with a walking-away exchange ratio 0.54. Then adding synergy‚ it reached an opening exchange ratio 0.72. Through further negotiation with BP‚ both parties reached a conclusion on certain level synergy distribution and agreed to close the deal at an
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at the 2.5% inflation rate so option 1 (without engine) will generate higher Operational costs over the expected 12 years useful life of the ‘Vital Spark’ cargo ship in comparison with option 2 (new engine and control system). There will be no cash flow stemming from the sale of ‘Vital Spark’ after its 12 years expected useful life after maintenance since the case clearly specifies that the salvage value of the vessel once taken out of service will be trivial. No specific changes in working capital
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FAMILY NAME: ______________________________________ OTHER NAME(S): ______________________________________ STUDENT ID: ______________________________________ SIGNATURE: ______________________________________ PAPER ID: 00615 THE UNIVERSITY OF NEW SOUTH WALES AUSTRALIAN SCHOOL OF BUSINESS SCHOOL OF BANKING AND FINANCE FINS1613: BUSINESS FINANCE SEMESTER 1 2012 FINAL EXAM 1. TIME ALLOWED – 3 hours 2. THIS EXAMINATION PAPER HAS 19 PAGES 3. TOTAL NUMBER OF QUESTIONS – 45 Multiple Choice
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George Simmons Friday‚ May 4‚ 2012 International Studies Program – Barcelona Professor Fischer Grupo Damm Final Strategic Recommendation Introduction and Summary of Recommendation Grupo Damm‚ one of the largest beer brewers in Spain‚ is a strong company in a weak home market. Although many opportunities exist for expansion‚ the strongest plan for the company to embark on is an aggressive expansion of its business in the United States. This project will give Damm access to a large consumer
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(3) the equipment is installed in December 1986. II: General Framework for Financial Analysis: “Net Present Value (NPV) is a method of ranking investment proposals using the NPV‚ which is equal to the present value of the project’s free cash flows discounted at the cost of capital. (Brigham‚ 2009)” Simply stated the NPV of a proposed project allows organizations to determine whether or not the project is worth pursuing. It shows how much the project will contribute to shareholder wealth (Brigham
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going forward. Free Cash Flow – We do not observe any non-cash expenditure like depreciation; amortization etc‚ Hence the net income of the company is only getting added to the free Cashflow (Valyewalk ‚ 2012 ). So we may say that‚ the free Cashflow generated are not much. So the firm will have a very poor free Cashflow. We could see that earlier free cash flows of the company are not much. Total Firm Value – The firm will have a poor enterprise value while doing a valuation (Cherwyk‚ P‚ 2011‚) of
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investment: 1) ‘Discounting’ Methods: Net Present Value (NPV): the present value of the future after-tax cash flow minus the investment outlay made initially. The decision rule for the NPV as follows: invest if NPV> 0‚ do not invest if NPV< 0 Internal Rate of Return (IRR): calculates the interest rate that equates the present value of the future after-tax cash flows equal that investment outlay; then compared to the required rate of return‚ or hurdle rate‚ to determine the viability
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entering the language software business and this IPO will help establish a market for the potential acquisition of their brand. Cashing Out Another reason firms choose to go public is that it allows their investors and current shareholders to cash out. Private equity firms ABS Capital Partners and Norwest Equity Partners‚ who supplied a great deal of capital in order to allow for expansion in 2006‚ are in position to profit a great deal on their investment if Rosetta Stone goes public (Schill
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the introduction of an ERP system‚ in various tangible and intangible areas. Observable tangible benefits come from lowering costs for data communication and telecommunication. In addition‚ there are intangible benefits associated with improved flow of information throughout the organization. However‚ increased user satisfaction and response times compensate the system complexity and potential data inconsistencies. Being an integrated solution‚ ERP‚ grants benefits from increased efficiency
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2011 Treasury Intern Job Description Apollo Group‚ Inc. is the Phoenix-based parent company of the University of Phoenix‚ the Institute for Professional Development‚ the College for Financial Planning‚ Western International University‚ and Apollo Global. Through its subsidiaries‚ Apollo Group has established itself internationally as a leading provider of higher education programs for working adults. Required: Resume and Transcript ------------------------------------------------- General
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