business operations and also for future expansion of the company. Types of Capital Expenditures Typically‚ capital expenditure refers to the expenses that a company incurred to purchase tangible fixed assets and intangible assets. Additionally‚ capex can cover the costs for repair and maintenance as well as the acquisitions of new business. Defining Fixed Assets Fixed assets are non-current assets that the company acquired such as real properties‚ office equipment like printers‚ faxes machines
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Welcome to the New World MTN Group Limited Final results for the year ended 31 December 2012 Agenda 01 Strategic and operational overview Sifiso Dabengwa Group President and CEO 02 Financial overview Nazir Patel Group Chief Financial Officer 03 Looking ahead Sifiso Dabengwa Group President and CEO Strategic and operational overview MTN vision and mission Creating and managing stakeholder value Creating value for our shareholders‚ employees and communities in a sustainable way and
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difference in various situations‚ we also tries to focus on the reasoning and logic of accounting principle applied. True Star Electronics Company General rules: Now an entity can be either capitalized or expensed. Capital expenditures (CAPEX or capex) are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year. Operating
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! First American Bank: Credit Default Swaps ! Introduction: CapEx Unlimited (CEU)‚ is a fast growing telecommunication company‚ who had been a loyal banking customer with Charles Bank International (CBI). With previous accumulated loans of $100 million‚ it now requires $50 million more to finance the expansion of its network in the middle of an industry shakeout. The new loan is reasonable by itself‚ but when adding the loan to CEU’s existing loan would put CBI over
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Free cash flow In corporate finance‚ free cash flow (FCF) is cash flow available for distribution among all the securities holders of an organization. They include equity holders‚ debt holders‚ preferred stock holders‚ convertible security holders‚ and so on. G. Bennett Stewart - the "economic model of value holds that share prices are determined by just two things: the cash to be generated over the lifetime of a business and the risk of the cash receipts”. GSB (1990)‚ “The Quest for Value”
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Applied Corporate Finance Case: American Chemical Corporation The primary issue we are exploring here is the planned sale of the Collinsville Plant by American Chemical Corporation to Dixon at a negotiated price of $ 12 Million (as of end of year ‘79) Q1: Estimate the appropriate cost of capital for the investment To calculate the appropriate cost of capital we assessed Dixon’s purchase investment structure. The steps were as follows: 1. We first calculated the cost of debt of the investment using
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....... 3 Telecom site operating conditions ............................................................ 3 Case study: 3 BTS Site with 12 hours of electrical grid supply ..................... 4 Cost calculations: CAPEX and OPEX calculations ...................................... 5 CAPEX Calculations: .......................................................................... 5 OPEX Calculations: ........................................................................... 5 Plausible additions ....
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Pakistan will have 130.6 million mobile subscribers in 2013 with market share of Mobilink declining to 27.8% Mobile Operator Forecast on Pakistan provides over 50 operational and financial metrics for Pakistan’s wireless market and is one of the best forecasts in the industry. The publisher provides five-year forecasts at the operator level going out to 2013. They also provide quarterly historical and forecast data starting in 1Q2003 and ending in 2Q2011. Operators covered for Pakistan include:
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Questions I. 1. Major Sources Major Uses 2. Is CFO>0? CFO compared to Net Income 3. CFO>Capex? 4. CFO>Capex + Dividends 5. Excess Cash 6. Source of cash to pay Capex and/or Dividends 7. Were working capital accounts other than cash and cash equivalents primary sources of cash or users of cash? 8.What other major items affected cash flows? 1991 1. Major sources of cash are cash received from customers and proceeds from the issuance
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Analysis fA l i Identify th l Id tif the relevant cash flows related to: t h fl l t dt F FCF Capital Expenditures (CAPEX) Change in Net Working Capital (∆NWC) Operating Cash Flow (income statements) Discount each year’s free cash flow (FCF) Find Fi d NPV b summing di by i discounted FCFs t d FCF Accept or reject the project 3 Baldwin: B ld i CAPEX & ∆NWC 1 2 3 4 5 6 Incremental Cash Flows Capital Spending: Test marketing study (sunk cost) Bowling ball machine
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