.............. 7 3.1.2 Return on debt ............................................................................................................................... 8 3.2 3.3 3.4 4 DCF Analysis Using multiples what is the value of Yeats? Comparison firm value and stock value Recommendations 9 11 12 13 2 Andrea Auer‚ Tanja Bertossa‚ Denise Grittner‚ Dominik Willi Case Discussion in Finance – Yeats Valves and Controls Inc. Executive Summary We have been asked to advise Yeats Valves and Controls
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Project appraisal- A methodology Appraisal involves a careful checking of the basic data‚ assumptions and methodology used in project preparation‚ an in-depth review of the work plan‚ cost estimates and proposed financing‚ an assessment of the project’s organizational and management aspects‚ and finally the viability of project. It is mandatory for the Project Authorities to undertake project appraisal or atleast give details of financial‚ economic and social benefits and suitably incorporate
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on a time line? Is this opportunity rate a single number that is used to evaluate all potential investment? The rate of return you would earn on an alternative investment of small risk if you don’t invest in the security under consideration. An opportunity cost is the difference in return between an investment that has chosen for investment and one that is inevitably gave up. For example‚ if a person invests in equity and get 3% return over a period of time then by investing his/her money on stock
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FOR THE HP-10BII [pic] ******* NOTE: The HP calculators come from the factory with the PMTS/YR set to 12. Change this setting to 1 PMT/YR by going to #6 below. Change this setting before you do any of the time value of money problems!!!! You only have to change the PMT/YR setting one time! ********* GENERAL: Note that every HP-10BII calculator key has two functions‚ the main ones are in WHITE LETTERS and a second function in ORANGE. To access the second function‚ you simply enter the ORANGE
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Acquisition of Consolidated Rail – Case Study 1. Background Info - Conrail 1.1. Formed from the remains of the six bankrupt North-eastern railroads in 1973 1.2. Earned its first profit in 1981- $39.2m on revenues of $4.2bn. Privatised through an IPO in 1987 1.3. Major player in North-eastern cities and their connection with major Mid-western hubs 1.4. In 1995‚ had 23‚510 employees‚ operated 10‚701 miles of track and controlled 29.4% of the eastern rail freight market 1.5. Financial indicators-
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* Know goal of the financial manager * Define agency problem * Describe the four areas of Ratio Analysis (liquidity‚ activity‚ solvency‚ and profitability) and their purpose‚ know information that gives ratios value and meaning. Chapter 5 (15%) * Time Value of Money: PV‚ PMT of loan‚ FV of annuity‚ growth rate and mixed stream of cash flows Chapter 6-8 (46%) * Expected return‚ Standard deviation and Coefficient of variation of a single asset (Prob 8-5 but also find Standard
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FINS1613 Business Finance Semester 2 – 2009 Version 1.0.3 Contents Page 3 Page 7 Page 10 Page 14 Page 18 Page 23 Page 26 Page 29 Page 32 Page 38 Page 42 Basic Concepts Introduction to Financial Mathematics The Valuation of a Firm’s Securities Capital Budgeting Capital Budgeting Applications – Part 1 Capital Budgeting Applications – Part 2 Risk and Return The Capital Asset Pricing Model Cost of Capital and Raising Capital Capital Structure Dividend Policy Copyright © Ka Hei Yeh 2009 First
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truly comparable large sample of firms. Multiples analysis isbackward-looking‚ reliant on historical/current data to obtain multiples. It reflectsrelative value rather than the intrinsic value which DCF valuation produces.DCF analysis generates an intrinsic value as it relies on data specific to the firm. DCFanalysis factors in time value of money‚ and thus is a forward-looking measure.However‚ there is uncertainty in forecasting future revenues‚ especially for privatefirms and those firms that produce
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Explain how financial markets work in the United States. 3. __________ refer to all institutions and procedures that facilitate transactions in long-term financial securities. a. Currency markets b. Capital markets c. Commodity markets d. Money markets 4. __________ is a method of offering securities to a limited number of investors. a. Initial public offering b. Private placement c. Public offering d. Syndicated underwriting 5. When public corporations decide to raise cash in
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First Name: ID Number: COURSE FINANCE NUMBER COMM 308 SECTIONS: ( Circle your section) AA‚ AB DATE EXAMINATION June 18‚ 2012 Final Exam VERSION BLUE INSTRUCTOR: ( Underline your instructor’s name) Rahul Ravi Jay Mannadiar # OF PAGES 17 TIME Including cover 3 hours 19:00 to 22:00 DIVISION John Molson School of Business Concordia University READ THESE SPECIAL INSTRUCTIONS CAREFULLY ‐ You must submit a BLUE computer answer sheet. ‐ You are allowed to bring/use one or more calculators
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