whether CEOs of McCaw Cellular Communication and AT&T agree on an appropriate price of the company. In order to capture the value of McCaw Cellular Communications‚ three financial valuation models were developed while taking into account the trends in the industry and potential synergies from the take-over. Valuation Model #1: Comparable Transactions: As mentioned in the business life cycle section( Exhibit A)‚ cellular companies are in huge demand due to their outstanding growth potential. From
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Radio One Radio One Inc. was founded by Catherine Hughes in 1980. Radio One was the largest radio group targeted to African Americans. They had remarkable success by purchasing underperforming stations and went from only 7 stations in 95 to 28 in 99. In 1980‚ Hughes and her husband raised enough money to purchase WOL-AM in Washington‚ D.C. for just under one million dollars. This increased their credibility. Radio One’s strategy was to provide urban-oriented entertainment‚ with information easily
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discounted cash flow (DCF In finance‚ discounted cash flow (DCF) analysis is a method of valuing a project‚ company‚ or asset using the concepts of the time value of money. All future cash flows are estimated and discounted to give their present values (PVs) — the sum of all future cash flows‚ both incoming and outgoing‚ is the net present value (NPV)‚ which is taken as the value or price of the cash flows in question. Using DCF analysis to compute the NPV takes as input cash flows and a discount
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Prepared By: Fiona Wang This case introduces us to real option valuation in a bidding context. We are helping RTZ-CRA to determine the value of Antamina and to recommend how RTZ-CRA should bid in the upcoming auction under the non-traditional bidding rules set by the Peruvian government. Contents Executive Summary 1 Introduction 1 External Environmental Analysis 1 Internal Situation Analysis 2 Reasons to Bid 3 Valuation 3 Recommendations of the Bidding. 4 A Simulation Model 4
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faster with SS or with IB as a partner? Can SS achieve better margin enhancement with BV or SS as a partner? Can IB create more incremental value at BV or SS? © 2013 HARVARD BUSINESS SCHOOL PUBLISHING 3 VALUATION EXERCISE: BASE CASE STOCK PRICES You were asked to perform a DCF valuation for Bel Vino (and/or Starshine) Based on public
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Discounted Cash Flow Valuation of Aggregate Reserves Discounted Cash Flow Valuation – Proved Developed Reserves Discounted Cash Flow Valuation – Proved Undeveloped Reserves Discounted Cash Flow Valuation – Probable Reserves Discounted Cash Flow Valuation – Possible Reserves Question 3 To value MW Petroleum we would consider the assets in place and the option bearing assets discretely. The assets in place consist of the proved developed reserves since they are already producing a
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relatively easy to conduct a valuation of IPD. Given that IPD does not receive any benefit from Nova’s R&D efforts a more representative valuation for IPD can be obtained by adjusting the EBIT upward in our calculations to compensate for the over-allocated R&D . Here are some valuation figures for IPD to compare against United Chemicals offer of $160 million which after considering the tax benefits is worth $236 million (160 + 0.4*190) to Nova Chemicals: Based on DCF without R&D expense adjustment
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Khan Satyameet Singh Ahuja Moin Akhtar Madhur Chaudhary With multiple valuation numbers being arrived at ranging from 5.4 billion dollars to 173 billion‚ we believe that the most appropriate value for the organization is 12 billion dollars. It has been arrived at‚ by maintaining the industry standard of pricing a potential customer at a 173 dollars. The highest valuation we arrived at was by the DCF method (193 billion)‚ this number is only plausible when we assume that the organization
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MW Petroleum Corporation Situation Overview: Amoco Corporation conducted an extensive review of its cost structure and profitability‚ leading to major restructurings to better focus on its core businesses. The result of this was a divestment of the middle section of its assets along the marginal curve. Thus‚ creating MW Petroleum Corporation – a new‚ free-standing exploration and production oil and gas company. MW was offered to a number of targeted international petroleum concerns‚ but the most
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by 11:59 PM Sunday 11 November 2012 1. A number of publicly traded firms pay no dividends yet investors are willing to buy shares in these firms. How is this possible? Does this violate our basic principle of stock valuation? Explain. Our basic principle of stock valuation is that the value of a share of stock is simply equal to the present value of all of the expected dividends on the stock. According to the dividend growth model‚ an asset that has no expected cash flows has a value of zero
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