PRACTICAL APPLICATION OF DISCOUNTED CASH-FLOW BASED VALUATION METHODS Publication: Studia Universitatis Babes Bolyai – Oeconomica‚ LII‚ 2/2007 Author Name: Takács‚ András; Language: English Subject: Economy Issue: 2/2007 Page Range: 13-28 Summary: Valuation methods based on Discounted Cash-Flow (DCF) play a major role in the field of company valuation. The current literature contains a reasonably deep and detailed theoretical basis for DCFbased valuation‚ although‚ when starting to apply the techniques
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Sampa Video Valuation Case Study Free Cash Flow Projection: Based on all the given information and assumptions‚ the free cash flow projection for the company could be calculated as the table shown below (Exhibit 1‚ in thousands of $). The formula used for the calculation from year 2002 to 2006 is: FCF = (EBIT+Depr-Tax) + CAPX + Δ NWC. Starting at year 2007‚ the expected cash flow will be a growing perpetuity at an increasing rate of g=5%. Thus the terminal value could be calculated by the formula
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New Security Valuation Report ConocoPhillips Co. Brief Introduction 2012 ConocoPhillips (COP) becomes a newly independent company focused solely on core business of exploration and production. It completed reposition of separation of Phillips66 on April 30th‚ becoming the world’s largest E&P company based on production and proved reserves. Business Overview Investor composition The main ownership breakdown chart (exhibit1) shows that institutional stock and mutual fund ownership is
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BACKGROUND PAPER ON A-10 THUNDERBOLT II “WARTHOG” 1. The purpose of this paper is to provide background information on the A-10 Thunderbolt II‚ including its mission and characteristics‚ current role‚ and future role in combat. The A-10 is designed around the seven-barrel Gatling gun‚ and can carry 16‚000 lbs. of mixed ordinance‚ making it a lethal asset in combat operations. In the current conflict‚ the A-10 is flying missions against the Islamic State in Iraq and Syria (ISIS). Military and
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unique visual effects. Mark Williams says employees from different backgrounds carry another kind of filter: A cultural lens shades the way they view race‚ nationality and ethnicity‚ as well as programs aimed at encouraging workplace diversity. In The 10 Lenses‚ Williams‚ founder and CEO of The Diversity Channel‚ a consulting firm in Bethesda‚ Md.‚ says it’s critical to recognize the existence of these filters. "As employees and managers learn to better understand their own lenses and the lenses of
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CHAPTER 10 – 14.1 REVIEW For each number‚ determine the type of inference‚ state the assumptions‚ and answer the questions. 1. A random survey of 57 students was conducted to compare juniors and seniors employment status. Seven out of 18 juniors held a job while 16 out of 39 seniors held a job. (a) Find and interpret a 98% confidence interval. (b) Is there evidence at the 1% significance level that more seniors have a job than juniors? If so‚ what might explain this
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Week 10 Promotion The Promotion Mix • Advertising – – – – Can reach geographically disperse buyer masses Seller can repeat the message several times It is impersonal and one-way Could be costly in some media • Personal selling – – – – Implies personal interaction between two or more individuals Most efficient tool to create preferences‚ convictions and actions Allow creation of relationships Most costly promotional tool‚ requres long term commitment Fundamentals of Global Marketing © Juan
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Preservation of Food with Ionizing Energy Lesson 10 1 Assigned Readings – n Smith‚ J.S. and Pillai‚ S. 2004. Irradiation and Food safety. Food Technol. n Fact sheet on Food Irradiation http://www.inspection.gc.ca/food/information-for-consumers/fact-sheets/labelling-food-packaging-and-storage/irradiation/eng/1332358607968/1332358680017 n Frequently Asked Questions regarding Food Irradiation 2 Terminology n Radiation ¨ ¨ n Food irradiation ¨ n Rays of energy Emission and propagation of
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Firm Valuation Project Wal-mart (WMT) The purpose of this report is to find the intrinsic value of a company. We choose Wal-Mart Stores for our analysis. FCF calculation First‚ we retrieved the financial statements of the company for the last five years (2005-2010) from www.sec.gov website. Based on this information‚ we calculated the Average annual growth rate for Wal-mart to be 9.27% and the Compound annual growth rate to be 9.26%. Then we found the projected sales for 2010 to be
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UGBA 103 Fixed Income Valuation 1A) YTM is 4.75% at time of issuance. YTM is 4.88% at 99 per 100. YTM is 4.62% at 101 per 100. 1B) NTT should have been selling at $915.861M PVpredrop = (47.5/.0475)*(1-(1/((1.0475)^2))) = 88.636M PVpostdrop = ((30/.03)*(1-(1/((1.03)^2))))/(1.03^2) = 198.502M PVfacevalue = 1B/(1.0475)^10 = 628.723M PVpredrop + PVpostdrop + PVfacevalue = 915.861M 2A) Bond A should sell at $1040.55 each. Bond B should sell at $1000 each. Bond C should sell
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