Why Companies spends money on Capital Investment? 2) Stages in Capital Investment Process 3) For Capital investment appraisals why cash flows are more appropriate than Accounting profits 4) Meaning of Relevant Cash flows and examples of Relevant Cash flows 5) Why Time Value of Money is Key Concept in investment Appraisal? 6) Assumptions of discounted cash flows 7) How inflation may complicate analysis of Decisions Difference between Specific inflation rate and General inflation rate 9) Advantages
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Valuation of Common Stock Ashok Banerjee Common (Equity) Stocks • Because common stock never matures‚ today’s value is the present value of an infinite stream of cash flows (i.e.‚ dividend). • But dividends are not fixed. • Not knowing the amount of the dividends—or even if there will be future dividends— makes it difficult to determine the value of common stock. • So what are we to do? Valuation Models • Dividend Valuation Model (DVM): – Constant dividend: Let D be the constant DPS: The required
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financial practices did you target for this project? Responsibility 1. How do you relate with program administrators and financial personnel? 2. Do you compile and share monthly data involving income‚ investment‚ sales forecasting‚ shipments and cash flow reports? 3. What long range plans have you implemented for the business area? 4. Are you accounting and knowledge of financial systems abilities used to corporate profit/loss reports? 5. Have you been responsible for maintaining a financial system
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Dow Chemical Case Question 1 Polyethylene is the world’s most widely used plastic. Polyethylene plastic’s principal application was in packaging‚ from trash bags to milk jugs. It was widely used in the manufacture of everything from trash bags‚ picnic cutlery and garbage pails‚ to plastic toys. Polyethylene also replaced glass‚ wood‚ and metal in certain applications. There were three types of polyethylene‚ Low-density polyethylene‚ High density polyethylene and Low linear density polyethylene
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minimum amount of return on a project the company is willing to accept before starting a project. It is used in project evaluation to evaluate the amount of return on the project. A common method for evaluating the hurdle rate is apply the discounted cash flow method to the project‚ like net present value. 2. How does Teletech Corporation currently use the hurdle rate? They used it based on the firm’s rating‚ beta‚ cost of capital‚ and they calculated WACC of 9.3% for the whole corporation
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margins on R&D and related activities. FMI has funded these expenses through Notes Payable which are secured by its Accounts Receivable. It is projected that by the end of the current year‚ the company will have difficulty generating enough new cash flows to meet its growing sales. The company is facing the additional problem of having reached its current Notes Payables limit‚ set at 70% of Accounts Receivable. Management have resorted to
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Book Information Page Financial Management 5e Principles & Practices By Timothy Gallagher Colorado State University 3 things about Gallagher 5e 1. Complete coverage of recent financial crises\great recession 2. Review of systematic risk and “too big to fail” concepts 3. Best value proposition on the market (see quote on backside) 3 things about Textbook Media Press* 1. Proven content from trusted authors since 2004 2. Unique student options (online; desktop-PDF; paperback; iPhone)
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SUNWAY UNIVERSITY BUSINESS SCHOOL _ SUBJECT OVERVIEW FIN 1014: PRINCIPLES OF BUSINESS FINANCE Course Subject Code and Title Semester Prerequisite Contact Hours Lecturers Room Telephone No. Consultation Hours : : : : : : Bachelor of Science (Hons) in Accounting and Finance FIN 1014 Principles of Business Finance Aug 2013 None 2 hrs of lecture‚ 1 hr of tutorial and 1 hr of workshop Caroline Yap (caroliney@sunway.edu.my) Ruth Lim (sheauyenl@sunway.edu.my) : School of
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budgeting‚ focuses on the cash flows of prospective long-term investment projects. They use the same NPV discounted cash flow model. However MNC is more complex because of the following factors: * Terminal Values * Financing versus operating cash flows * Foreign currency fluctuations * Long-term inflation rates * Subsidized Financing * Political Risk * Parent versus project cash flows Economic exposure- is any exposure of an MNC’s cash flows to exchange rate movements
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SUMMER PROJECT REPORT ON FINANCIAL MODELING OF DABUR Under the guidance of Mr.DheerajVaidya‚ Director Corporate Bridge Consultancy Pvt. Ltd. In partial fulfilment of the requirements For the award of MASTER IN MANAGEMENT STUDIES(MMS) (Affiliated to university of Mumbai) VIVEKANAND EDUCATION SOCIETY’S INSTITUTE OF STUDIES AND RESEARCH CHEMBUR‚ MUMBAI Submitted by Sumit B. Agrawal ROLL NO: 01 MMS 2012-2014 Declaration By Candidate I wish to state that the work embodied
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