it can analysis the future performance of Wesfarmers and estimate value per share of common stock for shareholders by following four valuation methods. 1. Discount dividend model 2. Discounted abnormal earnings model 3. Discounted cash flow valuation 4. Discounted abnormal operating earnings model In 30 June‚ 2010‚ the market per share of Wesfarmers is $27.8. Currently‚ the market share price of common stock is $33.08 in 27 May‚ 2011. The share price rise about 19%. The current market
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is that of value creation for stakeholders in terms of a 52% dividend payout for the projected period from 2002 to 2006. Possible Solutions There can be two possible solutions for the problem at hand. One solution involves the finding out of free cash flows to firms that are sufficient to service debt obligations including interest and
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Forward looking statements This Investor Day presentation for Loblaw Companies Limited contains forward-looking statements about the Company’s objectives‚ plans‚ goals‚ aspirations‚ strategies‚ financial condition‚ results of operations‚ cash flows‚ performance‚ prospects and opportunities. These forward-looking statements are typically identified by words such as “anticipate”‚ “expect”‚ “believe”‚ “foresee”‚ “could”‚ “estimate”‚ “goal”‚ “intend”‚ “plan”‚ “seek”‚ “strive”‚ “will”‚ “may” and “should”
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Valuation? Valuation: Methods of quantifying how much money something should be exchanged for today‚ considering future benefits. We will teach 4 valuation methods Trading Comparables Transaction Comparables Sum-of-the-Parts Valuation Discounted Cash Flow Analysis (DCF) $ 2 Why is Valuation important? Acquisitions: How much should we pay for the company? Divestitures: How much should we sell our company for? Sell-side Research: Should our clients buy‚ sell or hold a given stock (fixed income security
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Oil & Gas Valuation – Quick Reference http://breakingintowallstreet.com Oil & Gas Valuation: Comparable Public Companies & Precedent Transactions Picking a set of comparable companies or precedent transactions for an oil & gas company is very similar to how you would pick them for any other company – here are the differences: 1. Rather than cutting the set by revenue or EBITDA‚ you would instead select the set based on Proved Reserves or Daily Production (in addition to the normal geographic and industry criteria)
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Molson Coors Alcoholic Beverages Industry‚ Team 1 Leah Black Professor Shaked‚ FE449 12:30PM Section Industry Information -Make sure to add info about craft beer -Shift away from beer and towards liquor Key Industry Drivers For beer‚ wine and liquor‚ demand from wholesalers is very important. Companies in this industry must work closely with wholesalers to properly promote their product and ensure shelf space at liquor stores. An issue that arises with wholesaling is state restrictions
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FIN350 midterm 1 Version B EVA = After-tax __ After-tax Operating Income Capital costs = NOPAT – After-tax Cost of Capital MVA = Market value __ Equity capital of equity supplied (book value) NOWC = Current assets - Non-interest bearing current liability FCFs for all investors = OCF-Gross Investment in Operating Capital = (OCF-Dep)-(Gross Investment in Operating
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acquisitions. With acquisitions however‚ it increased eight days. Operating cash flow was $ 420 million while free cash flow was $ 152 million. Thus the company is already cash positive and it will get even better at that because of its focus on reducing its DWC going forward. And an improvement in the cash position is definitely required as the company has only $ 1.7 billion of cash against $ 9.3 billion of total debt. The free cash flow target for the year is set at $ 500 million for full year
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To: JetBlue Management Team From: Subj: JetBlue IPO Price Recommendation Date: April 11‚ 2002 Introduction JetBlue is a company that was founded on not accepting the status quo with regard to how airline travel is “supposed to be”. Recent history shows that low-fare airlines are gaining momentum‚ and JetBlue’s business model sets us apart- our fleet is newer‚ more reliable and efficient. We offer the lowest cost per available seat mile than any other U.S. airline‚ and we do it while maintaining
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Butler Lumber Company 1. Why does Mr. Butler have to borrow so much money to support this profitable business? 2. Do you agree with his estimate of the company’s loan requirements? How much will he need to borrow to finance his expected expansion in sales (assume a 1991 sales volume of $3.6 million) 3. As Mr. Butler’s financial adviser‚ would you urge him to go ahead with‚ or to reconsider‚ his anticipated expansion and his plans for additional debt financing? As the banker‚ would you
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