Company value mean the amount of money is worth. How is the worth detected? And how you figure out how much a company is worth? One way is to add up all its asset (equipment‚ cash‚ stock‚ acc receivable‚etc). But that is not necessary what the company is worth‚ you can have inventory/stock and other asset that have a book value of $2mil but perhaps no one who want to pay that much to them‚ so the test of value is how much a buyer will pay and how much someone will pay is largely dependent by what
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The corporate sector all over the world is restructuring its operations through different types of consolidation strategies like mergers and acquisitions in order to face challenges posed by the new pattern of globalisation. The intensity of such operations is increasing with the de-regulation of various government policies as a facilitator of the neo-liberal economic regime. The intensity of cross-border operations recorded an unprecedented surge since the mid-1990s and the same trend continues
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ACCG 926 – Corporate Accounting Topic 1: Controlled entities – the th consolidation method lid ti th d Applying the consolidation method AASB 10 requires the application of the consolidation method th d Consolidation – process of preparing statements for group of entities under entities of financial of one of those Involves combining financial statements of individual entities to show financial position and performance of group Group – a parent and it’s subsidiaries
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Intercompany Eliminations Introduction In addition to the basic elimination entries that are needed to eliminate the equity in subsidiary companies during consolidation‚ there are specific types of events that must also be eliminated. The intercompany transactions−such as sales of inventory or other assets‚ subsidiary stock transactions‚ or intercompany bond transactions−that require special attention during the consolidating process are overviewed in this module. Elimination Entries When
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Calaveras Vineyards Case The appropriate TBV equations to calculate the firm’s WACC and FCF are: * R(after tax‚ wacc) = (E0/V0)rE + (D0/V0)rD (1-T) * FCF = TCF – corporate tax savings from deductable interest expense or * FCF = -NCPFA + Debt interest payment – corporate tax savings from deductible interest expense Below are the calculations for Calaveras Vineyards: * V1/1/1994 = (2‚500)/1.126 + 357‚000/1.126^2 + 463‚000/1.126^3 + 590‚000/1.126^4 + 780‚000/1.126^5
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STATE BANK OF INDIA INTRODUCTION: The task of identifying a suitable company which will give maximum return on shareholder’s fund has been a major motivation for researching into State Bank of India (SBI). Analysis was carried out to give a detailed understanding of the company’s current performances and future potentials. Results have been discussed under three main sub-headings which include: the company’s profile‚ SWOT analysis and Management performance analysis. The final decision on the
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MEMO To: Smooth Sailing From: The consulting group Date: May 6‚ 2012 ------------------------------------------------- Subject: Recoverability/Impairment of cruise ship ------------------------------------------------- Facts: Smooth Sailing is a private company that operates one cruise ship. Smooth Sailing’s purchase of the cruise ship was financed with nonrecourse debt. The cruise ship has its own identifiable cash flows that are largely independent of the cash flows of other asset groups
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Does Corporate Social Responsibility Affect Firms’ Performance?1 Laura Poddi2 Sergio Vergalli3 July 28‚ 2008 Abstract In the last two decades in the OECD countries there have been a raising development of firms certified as Social Responsible (CSR is the acronym of Corporate Social Responsibility). This kind of certification is assigned by private companies that guarantee that the behaviour of a certain firms environmentally and sociologically correct. Some papers (among others Preston
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Intellectual capital-Tomorrow’s assets‚ today’s challenge Executive summary Abstract This report has the following objectives: Defining the intellectual capital; exploring how to change the tacit knowledge into intellectual knowledge; suggesting how to turn intellectual capital into revenue; highlighting the intellectual management in enterprises. With increasing emphasis on that intellectual property is the greatest asset‚ this report also investigates the ways to protect intellectual capital
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Food for Thought Allfoods Corp. (Allfoods) is a calendar year-end company. On February 1‚ 2009‚ Allfoods announced that it was acquiring 80 percent of the outstanding common stock of Baked Beans Corp. (Baked Beans) in a business combination. On the acquisition date‚ Allfoods paid $40 million in cash and issued two million shares of Allfoods common stock to the selling shareholders of Baked Beans. All of the outstanding stock options granted to employees of Baked Beans will be replaced with Allfoods
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