Chapter 9 Assignment Questions 1. Pellagia Inc. is a nationwide retail chain specializing in women’s apparel. The company’s most popular lines are Aura and Home. Aura offers executive wear for women in the middle to high-end markets‚ and Home features casual but stylish clothes‚ also targeted at women in the middle to high-end markets. The company has 115 million shares outstanding with a current market price of $5.63 per share. The company is expected to show net income of $33 million in the next
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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 $1000 each. Bond C should sell
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This report is constructed as follows: section I introduces the selected firm briefly; section II and III gives projected income statement and balance sheet; section IV demonstrates how we calculate FCF‚ followed by firm value estimation; section V provides a sensitivity analysis of firm value to sales growth rate‚ FCF growth rate in second stage and WACC. I Company Profiles Johnson & Johnson is a U.S. multinational medical devices‚ pharmaceutical and consumer packaged goods manufacturer founded
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New Security Valuation Report ConocoPhillips Co. Brief Introduction 2012 ConocoPhillips (COP) becomes a newly independent company focused solely on core business of exploration and production. It completed reposition of separation of Phillips66 on April 30th‚ becoming the world’s largest E&P company based on production and proved reserves. Business Overview Investor composition The main ownership breakdown chart (exhibit1) shows that institutional stock and mutual fund ownership is
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Huffman Trucking Income Statement / Vertical Analysis December 31st‚ 2006 | In Thousands$ | Percent of Net-Sales(Rounded) | | 2006 | 2005 | 2006 | 2005 | Revenues | 879‚944 | 807‚288 | 100% | 100 | | Operating Expenses | | Salaries‚ Wages & Benefits | 353‚739 | 330‚597 | 40% | 41% | Fuel Expense | 217‚363 | 192‚357 | 25% | 24% | Operating Supplies & Expenses | 152‚318 | 136‚319 | 17% | 17% | Purchased Transportation | 89‚957 | 82‚429 | 10% | 10% | Operating Taxes
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accting for contingencies Additional minimum pension liability Tax benefits of loss carry-forwards acquires Tax benefits of dividends paid to ESOPs Unrealized gains and losses on equity securities avail. For sale Some adjustments of deferred tax valuation allowances funding status of pension plans Financing inc (or exp) items Preferred dividends Unrealized gains on losses on debt securities avail. For sale Operating or Financing inc items F.C. translation gains (losses) Gains(losses) on derivative
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AC 3115: Financial Statement Analysis and Valuation Executive Summary The objective of this report is to compare and contrast two companies in the airline industry with respect to strategic‚ accounting and financial analysis. We will develop a detailed forecasting model on which we will base our valuation of the companies. Other issues which arise will also be discussed in detail. Ultimately we will decide on whether to put a buy or sell recommendation on the shares of
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Stock Valuation FIN/571 April 13‚ 2015 John Triplett‚ CPA Stock Valuation Intro- Janice A primary “goal for management is to maximize the current value of the firm’s stock” (Parrino‚ Kidwell‚ Bates‚ 2012‚ pg. 12). As a result‚ understanding the true value of stock is beneficial. Stock valuation is important to identify which stocks are more desirable and will maximize wealth. Since stock has an effect on business and one’s own portfolio‚ valuing stock is critical. Several methods to value stock exist
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CHAPTER 18 VALUATION AND CAPITAL BUDGETING FOR THE LEVERED FIRM Answers to Concepts Review and Critical Thinking Questions 1. APV is equal to the NPV of the project (i.e. the value of the project for an unlevered firm) plus the NPV of financing side effects. 2. The WACC is based on a target debt level while the APV is based on the amount of debt. 3. FTE uses levered cash flow and other methods use unlevered cash flow. 4. The WACC method does not explicitly include the interest cash
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