the two-step impairment test shall be used to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). 3. There are a multitude of steps that ABC Company must take as part of its valuation process in the firm’s preparation of its 2013 consolidated financial statements. 1. Section 350-20-35.3A‚ “An entity may assess qualitative factors to determine
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“Does the Capital Asset Pricing Model Work?” David W. Mullins Jr. (Product number: 82106PDF-ENG) Article: “The Corporation’s Cost of Capital and the Weighted-Average Cost of Capital‚” Kenneth Eades (Product number: UV0389-PDF-ENG) Article: “Business Valuation and the Cost of Capital‚” Timothy A. Luehrman (Product number: 210037PDF-ENG) Financial Accounting (Statement Analysis): Article: “Introduction to Financial Ratios and Financial Statement Analysis‚” William J. Bruns Jr. (Product number: 193029-PDF-ENG)
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/Wed. 10:45 Fulton Hall 150 Rob James 617-552-0886 jamesrc@bc.edu Fulton Hall 324A Course Description: This course is an introduction to capital markets and financial instruments. It is not a course in personal investing. We will focus on asset valuation‚ risk measurement and control‚ and portfolio design for large institutions. We will cover 4 major modules: equity markets‚ portfolio theory‚ fixed income markets‚ and derivative markets. Course Format: In class‚ we will mainly discuss text material
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growth model‚ we can calculate that Company XYZ’s cost of capital is ($1 / $10 ) + 3% = 13% Using CAPM‚ we can calculate that Company XYZ’s cost of capital is 3% + 1.0*(12% - 3%) = 12% Why It Matters: Cost of equity is a key component of stock valuation. Because an investor expects his or her equity investment to grow by at least the cost of equity‚ cost of equity can be used as the discount rate used to calculate an equity investment’s fair value. Both cost of equity calculation methods have
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Australian School of Business School of Accounting ACCT5910 BUSINESS ANALYSIS AND VALUATION Course Outline Semester 2‚ 2013 Table of Contents PART A: COURSE-SPECIFIC INFORMATION 1 2 STAFF CONTACT DETAILS COURSE DETAILS 2 2 2 2 2 2 3 3 4 4 4 5 5 5 7 7 8 9 9 9 9 9 9 1 1 1 1 2 2 2 2 2 3 2.1 Teaching Times and Locations 2.2 Units of Credit 2.3 Summary of Course 2.4 Course Aims and Relationship to Other Courses 2.5
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and have 34% marginal tax rates. Two cases were examined‚ an expected case and pessimistic case (see exhibit 2 and 8 for details of assumptions provided in the case). Also‚ we assumed there were only two financing options available for CPP. Valuation and Financing of Pinkerton. Based upon Wackenhut and the current market value of Debt and Equity of Pinkerton‚ we estimated the cost of capital of Pinkerton to be 14.25% (Calculation in exhibit 1). We evaluated the source of value from Pinkerton
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financial courses that I am looking for. For instance‚ the corporate finance courses and the equity valuation and derivatives courses that will broaden my knowledge in different ways. The corporate finance courses will provide me with a comprehensive understanding of financial concepts and tools and will prepare me to analyze and evaluate corporate financial planning and decisions. The equity valuation and derivatives will deeply enhance my (existing) knowledge on what I already know about the equity
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Comparable companies analysis – Done to determine appropriate valuation multiple for Crocs‚ Inc. • • Selected peer group based on industry‚ business and financial characteristics Included explosive growth stocks such as Lulelemon & Under Armour having similar prospects for growth and ROIC as Crocs‚ Inc. and some mature‚ stabilized businesses with stable industry growth rates – Nike‚ Deckers & Timberland. This mix will help us provide valuation from an aggressive sales growth and maturing sales context
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are the tradeoffs in using multiples versus the DCF analysis? Answer: DCF Valuation ; Martin forecast revenue for each year for from the firm’s financial data‚select appropriate discount rate based on WACC‚ discount each cashflow back to it present value‚ obtain the terminal value through an application of terminal value multiple‚ using DCF method‚ Martin calculates the price of Cox’s share to be $54.29. Multiple Valuation; Identify comparable firms that have growth‚ cashflow and risks similar to
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the case didn’t provide us with the financial statements for Monmouth‚ we can assume that in order to complete the acquisition they have to issue stocks as they exhausted (or will pretty soon exhaust) their debt capacity. 2. Based on the DCF valuation and using a WACC of 8.25% (the beta assumed to be 1‚ the average beta of comparable firms and the coupon rate to be 7.96%‚ the rate for BB rated companies) and a growth rate of 5.5%. The fair price is $40.4 per share for Robertson‚ lower than the
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