Finish Line In 1976 two friends named David Klapper and Alan Cohen paired together to run a franchise that would come to be known as the Athlete’s Foot. Athlete’s Foot was a large athletic footwear business. By 1981 Klapper and Cohen’s vision grew larger than what the Athlete’s Foot franchise was able to contain. In this year Klapper and Cohen decided to open their own franchise as a spin off of the Athlete’s Foot; they named it Finish Line. Cohen and Klapper were phenomenal businessmen
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the expected cash flows. The result is net present value (NPV) and a positive NPV show that investment creates value. It is a notion that EVA approach requires less information than a DCF valuation‚ or that it provides a better estimate of value is false. The EVA approach should yield the same value as a DCF valuation (DAMODARAN)‚ and it requires more information‚ not less (forecast of capital spend on assets‚ investments and acquisitions). The DCF valuation requires cash flows and a discount
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|[pic] |Course Syllabus | | |School of Business | | |FIN/370 Version 7 | |
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addition‚ single customer limit was also one of the reasons why TNB had to commit foreign currencies borrowing. Other main constraints included among others security of coal supply and uncertainty in coal pricing which severely impacted TNB’s cash flows in addition to generating electricity for the nation. Due to these overriding constraints‚ few alternative solutions were proposed and analyzed in order to mitigate the problems. Among the solutions proposed were (i)TNB to establish policies to minimise
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UVA-F-1543 Rev. Mar 9‚ 2011 VICTOR CHEMI RIA ICALS PLC (A): THE MERSEYS C E SIDE PROJ JECT Late one afte L ernoon in Jan nuary 2008‚ Frank Grey ystock told L Lucy Morris “No one s s‚ seems satisfied with the an nalysis so far‚ but the suggested c f changes cou kill the project. If solid uld projects like this can’t swim past the corpora piranhas‚ the compan will never modernize.” l t ate ny r Morris was plant manager of Vict M toria Chemi icals’ Merse eyside Work
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Crocs‚ INC 1. Company background. Crocs manufactures soft‚ comfortable‚ lightweight‚ superior-gripping‚ non-marking and odor-resistant shoes for casual wear‚ as well as for professional and recreational uses. The company’s primary products include footwear and accessories which utilize its proprietary closed cell-resin‚ Croslite. It operates through three segments: Americas‚ Europe and Asia. *source from WSJ. The stock price (from 1/1/2007 to now) shows the overall up and down trends to
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beta of its assets. We now have a rough estimate of Spyder’s asset beta‚ we can use CAPM to calculate the cost of assets of the firm (Exhibit 2). With an appropriate discount rate‚ we can use the WACC method to discount the company’s projected cash flows. Again‚ since the company is entirely comprised of equity‚ the cost of assets is the cost of the entire firm‚ so we will use it in place of WACC. Using Spyder’s pro-forma income statement‚ we then calculate the FCF’s for the next 4 years and discount
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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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Case Study on Qantas Airways Limited / Qantas Group (‘QIL’) The principal activities of the Qantas Group are the operation of international and domestic air transportation services‚ the provision of freight services and the operation of a Frequent Flyer loyalty program. Key Business Drivers 1. Brand value and dominant share in the domestic market. 2. Product and Service innovation. 3. Consistent high load factor. 4. Strong multi –brand strategy and service offering (i.e. Operating both
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ALCAR approach: the Alcar Group Inc. a management education and software company‚ developed an approach to VBM which is based on discounted cash flow analysis Determinants of shareholder value: according to Alfred Rappaport author of creating share holder value; a guide to managers and investors‚ who is regarded as father of share holder value‚ the following seven factors called “value drivers” affect shareholder value 1. Rate of sales growth 2. Operating profit margin 3. Income tax rate 4. Investment
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