Graduate School of Business Administration University of Virginia UVA-F-1274 METHODS OF VALUATION FOR MERGERS AND ACQUISITIONS This note addresses the methods used to value companies in a merger and acquisitions (M&A) setting. It provides a detailed description of the discounted cash flow (DCF) approach and reviews other methods of valuation‚ such as book value‚ liquidation value‚ replacement cost‚ market value‚ trading multiples of peer firms‚ and comparable transaction multiples. Discounted
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Gourmet Products Inc. Prepared by Asif Majarani‚ Sr. Audit manager of Majarani Associates‚ CGAs Submitted October 31‚ 20X0 Summary Our firm has been engaged with GPI for compilation engagements for the past two years. For year ending September 30‚ 20X0‚ a preparation of consolidated financial statements are required due to acquisition of foreign subsidiary on August 15‚ 20X0. This report addresses issues surrounding the preparation of the consolidated statements for Gourmet Products Inc. (GPI) and
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XIAOMI A Chinese electronics company headquarter in Beijing‚ China owns a private incorporation‚ Xiaomi Inc. and according to IDC (2015)‚ it’s the world’s 4th largest smartphone maker. Xiaomi develops‚ design‚ and sells smartphones. The company sold over 60 million smartphones in 2014 with the start-up of US$1.1 billion‚ known as the world’s most valuable technology star-up. Xiaomi’s valuation is over US$46 billion‚ according to (Douglas MacMillan‚ 2015). Over 8000 employees in the company‚ throughout
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assigning numbers to the categories then computing with them. This type of data is either nominal or ordinal. Nominal The number we assign to some object‚ idea‚ or behavior is entirely arbitrary‚ although in some cases a tradition may establish the rules of assignment. If measurements are assigned arbitrary numbers‚ they are called nominal numbers‚ and their sole purpose in the analysis is to differentiate an item possessing one characteristic from an item possessing a different characteristic.
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VIBRATION MEASUREMENT In some practical situations‚ it might be difficult to develop a mathematical model of the system and predict its vibration characteristics through an analytical study. In such cases‚ we can use experimental methods to measure the vibration response of the system to a known input. This helps in identifying the system in terms of its mass‚ stiffness‚ and damping. In practice the measurement of vibration becomes necessary for the following reasons: 1. The increasing demands
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Universal Circuits Inc. Case Study Finance 405 After receiving a telex from the Controller of the Irish plant‚ who is an integral employee at Universal Circuits‚ we had to make a tough decision regarding his request to hedge against the US dollar depreciating. If the US dollar depreciates‚ manufacturing would be shifted from his Irish plant to the US plants‚ which in turn would negatively affect his potential bonus. We acknowledge this risk
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ME 4600:483 – Lab Notes Revised 04/07/05 Flow Measurement Table of Contents Flow Measurement ......................................................................................................................... 1 I. Objective ................................................................................................................................. 1 II. Apparatus...................................................................................................................
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ABC Inc. Date: January 11th‚ 2015 Prepared by: Reviewed by: Professor ISSUE: Accounting for ABC’s tenant improvements and lease incentive obligations under the lease agreement with Landlord LLC (the “Landlord”). BRIEF BACKGROUND OF COMPANY ABC Inc. was founded in 2007 and is headquartered in San Francisco. Revenues and net income for 2010 are $500 million and $80 million‚ respectively. In September 2010‚ ABC Inc. (“ABC” or the “Company”) entered into an agreement with Landlord LLC (the
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Use the following information for Questions 1 and 2: A stock has a required return on 11 percent. The risk-free is 7 percent‚ and the market risk premium is 4 percent. What is the stock’s beta? 1.2 1.1 1.0* 0.9 If the market risk premium increases to 6 percent‚ what will happen to the stock’s required rate of return? 6.00% 7.00% 11.00% 13.00%* Stock R has a beta of 1.5‚ Stock S has a beta of 0.75‚ the expected rate of return on an average stock is 13 percent‚ and the risk-free
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AFC 3230 – Financial Analysis and Valuation Lecture 1 – Introduction (6 marks – Theory) Investment Styles: Intuitive Investing * Investor who relies on intuition and hunches – there is no analysis involved Problems: * Self-deception‚ ignores ability to check intuition Passive Investing * Investor who accepts the market price as value – there is no analysis involved – this is the “efficient market approach” Problems: * It is risky that you may be paying too much for
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