com/quote/EADS:IX Guru Focus http://www.gurufocus.com/term/Shares%20Outstanding/BA/Total%252BShares%252BOutstanding/Boeing%2BCo Ft http://www.ft.com/intl/companies Alpha http://seekingalpha.com/article/244271-boeing-free-cash-flow-analysis Wiki wealth http://www.wikiwealth.com/discounted-cash-flow-analysis:ba Businessweek Dream liner : http://business.time.com/2013/01/17/is-the-dreamliner-becoming-a-financial-nightmare-forboeing/#ixzz2JCRD2XIf Alpha http://seekingalpha.com/article/1125181-boeing-still-fairly-valued-despite-787-concerns
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414) x 11.09% + 2‚965‚414/(16‚474‚521+2‚965‚414) x 8.68% x (1-34%) WACC = 10.3% Thus estimated WACC including the tax benefits from the shield is subsequently used to discount company’s free cash flows (FCF). [pic] Numerous assumptions are set in the process of calculating Netscape’s free cash flows. First we make a forecast about Netscape’s revenue growth for the entire period from 1995 to 2005 as we have based our assumption on the specific characteristic of the industry‚ company’s
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opportunity to make a capital budgeting decision by using discounted cash flow analysis to make an investment and corporate policy decision. Ocean Carriers is a shipping company evaluating a proposed lease of a ship for a three-year period beginning in 2003. The proposed leasing contract offers very attractive terms‚ but no ship in Ocean Carrier’s current fleet meets the customer’s requirements. The firm must decide if future expected cash flows warrant the considerable investment in a new ship. For the questions
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Internal factorsExternal factors | Strengths: 1. Quality recognition. 2. Leadership positions for flour milling and film exhibition divisions. 3. Strong free cash flow from flour milling operations. 4. Shrewd management with proven track record. 5. Strong financial position. 6. Online system. 7. Cost advantage. 8. Employer relations. 9. Brand recognition. | Weaknesses: 1. Earnings are subject to prices wheat. 2. Less margin profit of flour. 3. Process-oriented R&D.
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Corporation (NYSE:RL) is well known in the apparel clothing field. The corporation engages in the design‚ marketing and distribution of lifestyle product. This analysis paper will illustrate the current financial situation and forecast the future free cash flow based on the previous financial statement and financial data collected. These information and forecast are served for the potential investor to have a general understanding of RL Corporation and make the right choice on their money.
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b. True. 10. PVGO = 0‚ and EPS1 equals the average future earnings the firm could generate under no-growth policy. 11. Free cash flow is the amount of cash thrown off by a business after all investments necessary for growth. In our simple examples‚ free cash flow equals operating cash flow minus capital expenditure. Free cash flow can be negative if investments are large. 12. The value at the end of a forecast period. Horizon value can be estimated using
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the customer refuses to buy the product after the contract expires. Therefore Hansson needs to accurately calculate the cash flows related to the investment and account for the risk inherent in the investment before he can make decision on the expansion project. Excel Sheet Projections for Expansion Project Investment Appraisal for Expansion Project 2009-2018 Free Cash Flows‚ NPV‚ IRR‚ MIRR Calculation of Cost of Capital Riskfree Rate‚ Market Risk Premium‚ EquityBeta‚ Cost of Equity‚ Cost of Debt
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Business Profile SWOT Analysis Strengths • Effective management team • Distinguished brand • Strong bargaining position with suppliers • Large customer base • Offers integrated services Weaknesses • Scaling operating costs • Market position relative to SingTel Opportunities • New technologies • Changing customer preferences • Government initiatives (e.g. island-wide wi-fi access) • Changing network infrastructure (e.g. next-gen broadband network) Threats • Government regulations • Technological
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Market value of debt Market value of equity Pretax cost of debt After Tax cost of debt rd Market value weights of: Wd Debt We Equity bL Levered beta Rf Risk-free Rate Market Premium RM Ke Cost of equity WACC EBIT - Taxes (34%) EBIAT + Depreciation - Capital expense Change in Net Working Capital Free Cash Flow Value of Assets ( FCF/WACC) CASE # 31 0% Debt 100% Equity $ $ 20‚000 $ $ 20‚000 7.0% 4.62% $ 34% $ $ $ $ $ $ 0 1 0.8 7% 8.6% 13.88% 13
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that the value of the firm is equal to $1175.03 million. [pic] [pic] For the calculation of the firm value the WACC is used by considering current debt equity ration ( .50). WACC is calculated as follow – [pic] [pic] The free cash flows of the firm would be discounted on the basis of this rate. The valuation and current merger price shows that Birdie should precede with the merger as it would be beneficial for the company to increase its profitability in long term. The expected
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