dissertation is to value Cimentos de Portugal‚ SGPS‚ S.A‚ hereon stated as Cimpor. In order to do that‚ the main valuation methods and theories will be reviewed and consequently applied to deliver an investment recommendation regarding FY2012 stock price. The structure of this dissertation is divided into eight main sections: I. In the first section -executive summary- an equity research report will be presented summarizing Cimpor’s valuation as well as my final recommendation; II. In section two -literature
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Break-Even Point Author(s): Satya Prakash Singh and Jayant V. Deshpande Source: Economic and Political Weekly‚ Vol. 17‚ No. 48 (Nov. 27‚ 1982)‚ pp. M123+M125+M127M128 Published by: Economic and Political Weekly Stable URL: http://www.jstor.org/stable/4371597 . Accessed: 01/04/2014 04:34 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use‚ available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that
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In particular‚ the following issues must be considered: Valuation of cash flows in the relevant period Estimating terminal value A. Procedure 1. The cash flows (without synergy) were taken as provided for 5 years along with adjustment for Net working capital changes. 2. WACC was calculated for various D/V ratios 3. Terminal Value of the firm was determined using P/E Multiple of 19.1 4. Valuation done for the cash flows and terminal value at a discount rate corresponding to industry average D/V
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the Match My Doll Clothing option I discounted the cash flows to find the net present value after 10 years. Revenues increases every year‚ but after discounting them 9% to bring them to present value and also adding a terminal value of $924‚500 I found that the cash flows summed up to $9‚869‚000. Taking out the initial expenditure of $3‚520‚000 gives us a NPV of $6‚349‚800. When I calculate the NPV for the Design Your Own Doll investment‚ I took the cash flow in year one to be 0 because the revenue
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results of the financial analysis below indicate Active Gear should proceed with the acquisition. Based on the Free Cash Flow Method‚ considering the financial projections and assumptions for Mercury Athletic‚ indicate the acquisition has a positive net present value of $112‚778‚000 [Present Value of Future Cash Flows (59‚440‚000) + Terminal Value ($276‚921‚000) – Purchase Price ($223‚583‚000)]. There are also possible synergies that could make the project even more financially favorable‚ which are
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the manager in adding value to the firm. 2. develop an understanding of the investor’s requirements for return on invested capital. 3. relate the estimation of cash flows‚ cost of capital‚ risk‚ and investment to the responsibility of adding value. 4. relate the use of the net present value (NPV) discounted cash flow technique to the adding value imperative of all managers. 5. apply the concepts of this chapter to the case study. The Role of the Manager in Adding Value to the
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the recently submitted leasing contract proposal‚ Ocean Carriers would have to purchase a new ship. The purchasing of a new ship is a considerable investment. We have analyzed whether or not Ocean Carriers should make this investment using Free Cash Flow and Net Present Value (NPV) analysis. Given the details of the contract‚ the forecasted daily time charter rates‚ and the costs data; we have concluded that Ocean Carriers should not accept the proposal and purchase a new ship if the company’s plan
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information‚ however‚ is hard to come by‚ so it is safe to use the book value.) Figuring out the market value of equity is trickier‚ and that’s where valuation techniques come into play. The four most commonly used techniques are: 1. 2. 3. 4. Discounted cash flow (DCF) analysis Multiples method Market valuation Comparable transactions method Generally‚ before we can understand valuation‚ we need to understand accounting‚ the language upon which valuation is based. 20 © 2005 Vault Inc. Vault
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Government Privatization History‚ Examples‚ and Issues Commission on Government Forecasting and Accountability 703 Stratton Office Building Springfield‚ Illinois 62706 October 2006 Commission on Government Forecasting and Accountability COMMISSION CO-CHAIRMEN Senator Jeffrey M. Schoenberg Representative Terry R. Parke SENATE HOUSE Don Harmon Christine Radogno Steven Rauschenberger David Syverson Donne Trotter Mark H. Beaubien‚ Jr. Frank Mautino Robert Molaro Richard Myers Elaine Nekritz EXECUTIVE
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simplicity‚ analysts and academics have sometimes made this assumption‚ but as Chapter 4 will demonstrate‚ returns on invested capital can vary considerably‚ even between companies within the same industry. Question 2 Value Inc. generates higher cash flows because it doesn’t have to invest as much as Volume Inc.‚ thanks to its higher rate of ROIC. In this case‚ Value Inc. invested $25 million (out of $100 million earned) in year 1 to increase its revenues and profits by $5 million in year 2. Its return
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