The IPO of CFAO – MCT 4 – 31 October‚ 2012 st 1 Corporate Finance Prof. Ken L. Bechmann‚ Ph.D. The IPO of CFAO ESSEC & MANNHEIM EMBA‚ Weekend 2013 MCT 4 Johannes Drexler Anton Golubev Fabricio Granados Curzio Scheurer Nataliya Shevchenko Matthias Wörner Mannheim Business School 31st October‚ 2012 The IPO of CFAO – MCT 4 – 31 October‚ 2012 st 2 1. Discuss the performance and financial strategy (capital structure) of CFAO in the 20062008 period. The management of
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three different methods of calculation in order to have good and accurate economic valuation of the company which will be used to compare 1) First the market value of a company which can be calculated by multiplying the number of shares per its prices of share. This method relies on direct market valuation of the company which is listed on the stock-exchange: 1000 million shares * 3.20 HK$ = 3‚200 million HK$ Converting in dollar and according to the exchange rate provided 1 US$ = 7.8 HK$: 3
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taken from published reports by financial analysts. We classify the errors in six main categories: 1) Errors in the discount rate calculation and concerning the riskiness of the company; 2) Errors when calculating or forecasting the expected cash flows; 3) Errors in the calculation of the residual value; 4) Inconsistencies and conceptual errors; 5) Errors when interpreting the valuation; and 6) Organizational errors. Keywords: valuation‚ company valuation‚ valuation errors JEL Classification:
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It provides a detailed description of the discounted cash flow (DCF) approach and reviews other methods of valuation‚ such as book value‚ liquidation value‚ replacement cost‚ market value‚ trading multiples of peer firms‚ and comparable transaction multiples. Discounted Cash Flow Method Overview The discounted cash flow approach in an M&A setting attempts to determine the value of the company (or ‘ enterprise’ by computing the present value of cash flows over the life of the ) company.1 Since a
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2012‚ Blk 1 Due 5:00PM‚ March 3rd‚ 2012 Problem Statement Since 2003‚ I have invested in rental properties by acquiring some median income type houses in some prime locations in Fortaleza‚ Brazil. The business has been profitable but with home prices exploding at unjustifiable levels in Brazil now I feel forced to look for other markets to invest. The recent real estate crisis in the U.S. created a favorable economic environment by reducing acquisition costs and increasing rental demand. So last
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This acquisition would double AGI’s revenues‚ increase its leverage with contract manufacturers‚ and also help to expand its presence with key retailers and distributors. Moreover‚ if negotiated well‚ AGI could acquire Mercury for a lower price than the actual price of Mercury; earning more than what they’ve paid. This will be discussed further in the recommendation. Secondly‚ acquiring Mercury is a lower risk way for AGI to increase their growth rate. Mercury has a high growth rate of revenue‚
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When the discount rate is 3% value of gold mine is 182.86. Part II A. Consider the project with the following expected cash flows: Year | Cash flow | 0 | -$400‚000 | 1 | $100‚000 | 2 | $120‚000 | 3 | $850‚000 | If the discount rate is 0%‚ what is the project’s net present value? Year | Cash flow | Discount rate | Discount factor | Discounted cash flow | 0 | -$400‚000 | 0% | 1.00 | -$400‚000 | 1 | $100‚000 | 0% | 1.00 | $100‚000 | 2 | $120‚000 | 0% | 1.00 | $120‚000 | 3
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STUDY QUESTIONS CASE KOHLER CO. 1. What is the total enterprise value of Kohler Co. using a Discounted Cash Flow approach? What is the total enterprise value using a multiples (market value of comparable companies) approach? What is the value of a share held by a minority shareholder in Kohler Co. that is implied by your valuations? 2. What assumptions can you use to arrive approximately at the share price of $55‚400 that was estimated by Kohler Co.? Show how these assumptions impact your valuation
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Batting Center Professor: Jeannette Monaco Student: Lydia Lin Organized Chart Segments / Features Little Leaguers Summer Sluggers Elite Ballplayers Entertainment Seeker Description Boys and girls age 6-15 Adults‚ price sensitive Men women age 16-35‚ elite players No particular interest‚ price sensitive Motivation Learn how to play Practice for the baseball season Practice skills Night out‚ leisure activities Time period in the year Preseason months of Feb and March Summer Cost workers labor cost ￥1
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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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