the two periods. 2004 2003 Absolute Liquidity 5/895 = 0.005:1 = 40/355 = 0.11:1 From looking at the absolute liquidity ratios of the firm we would say that the firm is not very liquid at the moment due to the low amount of cash that is on hand and the increase in accounts receivable and inventory from the previous year. When comparing the previous year to this year we can see that the absolute liquidity has decreased by at least half meaning that the company is half as liquid
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Equity Valuation: Discounted Cash Flow and Residual Income Models Introduction Valuation plays a very important role when companies are trying to increase their value‚ raise money‚ acquire another firm or sell a subsidiary‚ also when a company decides to go public. Managers‚ investors and shareholders need to have the most accurate and reliable information in order to make decisions‚ that is why valuation is a fundamental exercise in corporate finance. It is pretty evident that whatever
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THIS IS A LIST OF EXCEL PROGRAMS THAT YOU MIGHT FIND USEFUL. THEY ARE NOT COPY PROTECTED. FEEL FREE TO MODIFY THEM TO YOUR OWN NEEDS. Corporate Finance Spreadsheets 1. capbudg.xls: This program allows you to do a basic capital budgeting analysis for a project‚ and compute NPV‚ IRR and ROI. (For Macintosh version) 2. risk.xls: This program allows you to use past returns on a stock and a market index to analyse its price performance (Jensen’s Alpha)‚ its sensitivity to market movements
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Full Year Results Year ended 31 December 2012 28 February 2013 Cautionary statement This Review is intended to focus on matters which are relevant to the interests of shareholders in the Company. The purpose of the Review is to assist shareholders in assessing the strategies adopted and performance delivered by the Company and the potential for those strategies to succeed. It should not be relied upon by any other party or for any other purpose. Forward looking statements are made in good
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Based on the information released by Boeing‚ Exhibit 8 shows a detailed free cash flow forecast for the 7E7 project from 2004 to 2037. Based on the baseline forecast‚ the Internal Rate of Return (IRR) from this project is around 15.66%. Given the projected cash flow information from Boeing‚ please conduct the following analysis. 1) Please work through Exhibit 8 (spreadsheet) carefully to see how Mr. Bair forecasted the cash flows (you don’t need to answer this question‚ just check the spreadsheet
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Debt policy at UST inc. Case To: UST Board of Directors From: UST Financial analysis team Date: 18 January 2011 Subject: Future debt policy at UST and recapitalization option 1. Analysis of UST business current and future environment UST operates in the smokeless Tobacco industry‚ a market with 2 B$ of revenues‚ which grew at a CAGR of 3.7% over the past 17 years‚ but more recently experienced a decrease in growth rate‚ dropping to 2.9% in 1997 and 1.2% in 1998. In this market‚ UST
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industry and global economic situation on the valuation date as well as states the future trends. Bases for valuation consist of discounted cash flow valuation. Additionally the real option valuation method is used to determine the value of experimental medicine at the beginning of its development process. The results are compared to the usual discounted cash flow valuation method and give an answer if development of new medicine shall or shall not be proceeded with. 2 Acknowledgment I express sincere
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Errors Cash flows. Is the movement of money into or out of a business‚ project‚ or financial product. It is usually measured during a specified‚ limited period of time. Measurement of cash flow can be used for calculating other parameters that give information on a company’s value and situation. Cash flow notion is based loosely on cash flow statement accounting standards. It’s flexible as it can refer to time intervals spanning over past-future. It can refer to the total of all flows involved
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Primer Series Peter Suozzo +852-2971 6121 s peter.suozzo@ubsw.com Stephen Cooper +44-20-7568 1962 s stephen.cooper@ubsw.com Issue 1 This is the first in a series of primers on fundamental valuation topics such as discounted cash flow‚ valuation multiples and cost of capital. This document explains how to calculate and use multiples commonly used in equity analysis. Gillian Sutherland +44-20-7568 8369 gillian.sutherland@ubsw.com Zhen Deng +1-212-713 9921 zhen.deng@ubsw
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example‚ in July it redeemed the 4.95 % senior notes due November with a cash payment of $ 904 million and in the third quarter‚ repurchased $ 292 million of debt‚ at a cost of $ 274 million. Because Transocean is expected to generate a handsome cash inflow in the following quarter‚ the outflow due to debt reduction will be more or less offset. And when the company is not looking for big investments at present‚ the best use of cash would be for debt reduction. Oil Industry Outlook and Effect on Transocean:
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