00Test Week 5 Midterm Exam Part 1 Started 11/12/14 12:52 PM Submitted 11/12/14 3:39 PM Status Needs Grading Attempt Score 40 out of 50 points Time Elapsed 2 hours‚ 46 minutes out of 2 hours. Instructions This exam consist of 25 multiple choice questions and covers the material in Chapters 1 through 3. Question 1 .2 out of 2 points Correct You recently sold 200 shares of Apple stock to your brother. The transfer was made through a broker‚ and the trade occurred on the NYSE. This
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Case 1 – New Heritage Doll Company 1. Set forth and compare the business cases for each of the two projections under consideration by Emily Harris. Which do you regard as more compelling? Productions was New Heritage´s largest division as measured by total assets‚ and easily its most asset-Intensive. Approximately 75 % of the division´s sales were made to the company´s retailing division‚ with the remaining 25% comprising private label goods manufactured for other firms. The division revenue figures
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to calculate the value of AirThread would not be appropriate. For the valuation of AirThread in this case analysis we are using APV. However we will still need to calculate the WACC for the purposes of the APV valuation. Valuing AirThread’s Cash Flows Given the above breakdown for the Net Income of AirThread over the 2008-2012 period and the working capital assumptions as outlined above (That are based on a 360-day year)‚ we can calculate the Net Working Capital (NWC) and the ΔNWC. To understand
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following data will show a competitive advantage for CEMEX: Table1 Calculated selected indexes on the basis of Exhibit 4 | CEMEX | HOLDERBANK | LAFARGE | (A)EBITDA / ton cement | 46 | 26 | 38 | (B)CAPEX / ton cement | 7 | 11 | 18 | (C)Free Cash Flow / ton cement | 22 | 8 | 8 | (D)TEV adjusted / ton cement | 172 | 160 | 130 | (A) shows a cost advantage to CEMEX due to a good global positioning satellites systems which decreases the costs for fuel‚ maintenance and payroll. Furthermore
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In this case study‚ we will talk about negotiate a possible acquisition of Flinder Valves and Controls. Inc by RSE International Corporation. To know why they gave that decision and how they could do it. We will have an overview of these two companies. 1. Overview of Flinder Valves and Controls. Inc and RSE International Corporation 1.1 Flinder Valves and Controls. Inc Flinder Valves and Controls. Inc (FVC) was an American company‚ located in Southern California. FVC was an outgrowth of
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for Sears? For Wal-Mart? Week 2: Valuing Rajat Bhatia’s Business Plan 1. Estimate (i) the current market value of the firm’s debt‚ (ii) the current market value of the firm using the free cash flow to equity‚ and (iii) the current market value of the firm using the free cash flow to the firm. Week 3: Deutsche Brauerei 1. What accounts for Deutsche Brauerei’s rapid growth in recent years? Specifically‚ what policy choices account for this success? 2. What
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New Heritage Doll Company 1. Describe and compare the business rationales for each of the two project proposals under consideration. Which do you feel is the more compelling? Project 1: Match My Doll Clothing Line Expansion Expand the successful Match My Doll Clothing Line to include matching all-season clothing for tween girls and their dolls. Pros: Current popularity will enable company to maintain premium prices. Company could take advantage of off-peak discounts offered by some suppliers
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Operations of Constant Growth Firm EMC Corporation has never paid a dividend. Its current free cash flow of $400‚000 is expected to grow at a constant rate of 5%. The weighted average cost of capital is WACC = 12%. Calculate EMC’s value of operations. FCF = $400‚000 g = 5% WACC = 12% Vop = PV of expected future free cash flow Vop = = = $6‚000‚000 (13-3) Horizon Value Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after
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Warner had a total gross cash flow of $24691.8. The peak cash profit from the income statement was in 2008 with an amount of $6‚251.6. However‚ in 2009 there was a sharp decrease to $3‚090.3 of gross cash flow. This fall in gross cash flow was due primarily to a substantial drop of $2‚312.3 in Time Warner’s net operating profit after taxes. This would prove to be the trough of Time Warner’s gross cash flow over this 5 year period; however‚ since 2009‚ the gross cash flow has been steadily increasing
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. Venture Screening BUS604 June 3‚ 2012 My business idea is to have light weight compact exercising equipment that can be move from place to place without taking up too much space or being to heavy to carry. My venture will be to promote good and healthy habits that will include a daily work out with a multi- purpose unit. This unit will be sold in the United States and abroad it will have a reasonable price of fifty dollars per unit it will be advertised on infomercials and online
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