will attribute to the asset under the scenarios considered in the CAPV. Our conclusions from doing the above exercise are the following: • • • • • • We believe that WHC’s revenue can grow at a rate in the range of 8%-10% Based on the steady cash flows of infrastructure businesses and the relatively low country risk of Hong Kong (embedded on the unlevered beta and the risk free rate respectively) we assume a discount rate of 9%-10% We believe that the capital structure post acquisition could easily
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examined firms. Key words: Equity Valuation Models‚ Asset-Bards Model‚ Discounted Cash Flow Model‚ Discounted Residual Income‚ Equity Market Value JEL classification: G 380 1. Introduction Fundamental analysis entails the use of information in current and past financial statements‚ in conjunction with industry and macroeconomic variables in order to determine the firm’s intrinsic value. To a fundamental analyst‚ the market equity price tends to move towards the fundamentalintrinsic value. A difference
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Coursework: Financial Analysis and Valuation of OJSC Megafon‚ Russia using DCF as the base model Prepared by: Victor Amoasii Word count: 3697 CONTENTS 1. Megafon overview and analysis of agency costs 2. Risk Profile Analysis 3. Weighted Average Cost of Capital 4. Megafon valuation 5. Capital investments risk analysis 6. Capital structure and dividend policy Megafon overview and analysis of agency costs
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Oil & Gas Valuation – Quick Reference http://breakingintowallstreet.com Oil & Gas Valuation: Comparable Public Companies & Precedent Transactions Picking a set of comparable companies or precedent transactions for an oil & gas company is very similar to how you would pick them for any other company – here are the differences: 1. Rather than cutting the set by revenue or EBITDA‚ you would instead select the set based on Proved Reserves or Daily Production (in addition to the normal geographic and industry criteria)
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What would be your recommendations as a business angel? The success of the flow binding shows that people are looking for a better solution than the now available bindings. Hereby‚ it is clearly very important to keep the soft boots‚ as they provide the snowboarders the necessary comfort‚ together with the ease of the step-in bindings. However‚ attention need to be taken into account to avoid the disadvantages of the flow bindings. As a business angel I would trust Peter on this matter‚ as he has
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Corporate Finance Capital Budgeting Course Outline CAPITAL BUDGETING Course outline Key Principles in Capital Budgeting: Criteria for Investment Projects Net Pesent Value Internal Rate of Return Payback Profitability Index Finding Cash Flows Maria Ruiz 1 Financial Management Financial management is largely concerned with financing‚ dividend and investment decisions of the firm with some overall goal in mind. Corporate finance theory has developed around the goal of shareholder
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models is some times attributed to the nature of a project. Capital inv appraisal of new technologies: Problems‚ misconceptions and research directions * Specifically‚ it has been alleged that the traditional appraisal methods of payback‚ discounted net present value (NPV) and internal rate of return (IRR) undervalues the long-term benefits; that traditional financial appraisals assume a far too static view of future industrial activity‚ under-rating the effects and pace of technological
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opportunities to challenge the market. Thereby‚ the focus of this dissertation will be the calculation of the additional value created by combining both firms bearing in mind the companies’ financial situations. All this considered‚ Nokia’s average share price during the last year is considered to have a 0.14% upside potential and synergies are estimated around 13% of Nokia’s average market capitalization. As a result‚ an offer at 19.4% premium over Nokia’s average market capitalization will be suggested
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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 and risks similar to those of target firm whose value is in question. 2. Obtain the individual multiple or ratio of the firm’s price to their financial data‚ such as EBITDA. 3. Average these multiples to obtain the industry average multiple. 4. Adjust this industry
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real assets can present challenges to financial analysts. Different models can be used to arrive at the closest estimate of value and yet certain issues will always arise. This case attempts to tackle two approaches in real asset valuation: Discounted Cash Flow (DCF) analysis and the issues surrounding such‚ as well as the Black-Scholes Model for Real Options. Questions to be addressed in the study are: 1. Evaluate Amoco’s and Apache’s corporate objectives and strategies. Is it reasonable to expect
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