and in practice Unlevered vs. levered DCF SECTION 2: MODELING THE DCF Modeling unlevered free cash flows Discounting to reflect stub year and mid-year adjustment Terminal value using growth in perpetuity approach Terminal value using exit multiple approach Calculating net debt Shares outstanding using the treasury stock method Modeling the weighted average cost of capital (WACC) Sensitivity analysis using data tables Modeling synergies ***************************** SAMPLE PAGES FROM TUTORIAL GUIDE
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CHAPTER 5 Balance Sheet and Statement of Cash Flows ASSIGNMENT CLASSIFICATION TABLE | | |Brief Exercises | | | | |Topics |Questions | |Exercises |Problems |Cases | |1. |Disclosure principles‚ uses of the |1‚ 2‚ 3‚ 4‚ 5‚ 6‚ 7‚|1 |
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Cash Flow Statement - Ford Motor Company Nancijo C. Emerson OMM 622 Financial Decision-Making (MFJ1448A) Professor Martin Cain December 22‚ 2014 Cash Flow Statement - Ford Motor Company What Does Cash Flow Mean? A revenue or expense stream that changes a cash account over a specific period. Cash inflows usually arise from one of three activities— operating activities‚ investing activities‚ and financial. Cash activities outflows result from expenses or investments that a
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|Thursday |Friday |Saturday |Sunday | |Week 1 |Day 1 |Day 2 |Day 3 |Day 4 |Day 5 |Day 6 |Day 7 | |FP 101 |Post Bio | | | | | |PFP: Personal Cash Flow Statement | |Week 2 |Day 1 |Day 2 |Day 3 |Day 4 |Day 5 |Day 6 |Day 7 | |FP 101 | | | | | | |PFP: Itemized Debt Week 2 Quiz | |Week 3 |Day 1 |Day 2 |Day 3 |Day 4 |Day 5 |Day 6 |Day 7 | |FP 101 | | | | | | |PFP: Cash-Saving Strategy Week 3 Quiz | |Week 4 |Day 1 |Day 2 |Day 3 |Day 4 |Day 5 |Day 6 |Day 7 | |FP 101 | | | | | | |PFP: Investigate Education
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CASH FLOW CYCLE Cash flow is referred to be the single most serious concern of the SME (small and medium-sized enterprise). It is simply the inflow and outflow movement of money in the business. The effect of cash flow is real and needs to be protected. There are four principles in cash management: - The first is cash needs to be tracked and captured. It needs to be in a controlled process. - Second‚ cash management is an important part of the business cycle. - Third‚ you need information on
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Yet IPO is still a popular tool for infant firms due to the fact it creates strategic market exposure. JetBlue was attempting to issue an IPO in 2002 after the subsequent event of 9/11 terrorist attack. This report attempts to calculate and evaluate the IPO valuation of JetBlue’s stocks and provide recommendation and adjustments where necessary to reflect the true value of JetBlue. Assumptions made in Exhibit 13 There were several valuation techniques used by analysts and underwriters to value an
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Lecture 8: Statement of Cash Flows Chapter 8 Measuring & reporting cash flows pages 448-472 448 472 pages 484-489 1 1 Learning objectives 1. 2. 3. 4. Explain why cash is important to the reporting entity Define cash and cash equivalents Distinguish between accrual- and cash-based transaction recognition Compare and contrast the roles of the four external financial reports (statement of financial performance‚ statement of financial position‚ statement of changes in equity and statement of cash
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n cash STATEMENT OF CASH FLOW - Section -7 Why statements of cash flow? They are required by the IFRS SMEs and they show the cash generating potential of a firm. A profitable firm may lack cash. Cash flow statements show the difference between cash and profit. Objective of Section 7: To explain the historical changes in cash and cash equivalents of an enterprise under the following activities; operating‚ investing and financing activities and changes in cash and cash equivalents.
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Chapter 12 Statement of Cash Flows True / False Questions 1. Interest and dividends from investments held by a company are reported as cash inflows from investing activities on the statement of cash flows. True False 2. Under the indirect method‚ changes in current assets are used in determining cash flows from operating activities and changes in current liabilities are used in determining cash flows from financing activities. True False 3. Using the indirect method‚ the increase
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Capital Cash Flows: A Simple Approach to Valuing Risky Cash Flows Richard S. Ruback* This paper presents the Capital Cash Flow (CCF) method for valuing risky cash flows. I show that the CCF method is equivalent to discounting Free Cash Flows (FCF) by the weighted average cost of capital. Because the interest tax shields are included in the cash flows‚ the CCF approach is easier to apply whenever debt is forecasted in levels instead of as a percent of total enterprise value. The CCF method retains
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