associates worldwide. In 2005 for this case the sales were approximately $285 billion and operated 4‚000 stores worldwide. Valuations Dividend Discount Method (DDM): The DDM is a procedure for valuing the price of a stock by using predicted dividends and discounting them back to present value. The idea is that if the value obtained from the DDM is higher than what the shares are currently trading at‚ then the stock is undervalued. This model is appropriate to Wal-Mart as it has been paying a dividend
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Selma Cihan BA (hons) 6th Semester ID: ………………………………………… Selma89@hotmail.de Submitted to London School of Commerce Toyota 2013 Brand Equity and its measures Table of Contents 1.0. Introduction: 1 2.0. Brand Equity: 2 2.1.0. Financial perspective: 2 Toyota Financial statement (Example 3 2.1.1. Caculating Brand Equity through discounted cash flow 3 2.2.0. Non-financial perspective: 5 2.2.1. the real and implied brand attributes 5 2.2.2. Importance of a company’s brand logo‚ symbol or trademark:
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Palamon Capital Partners/TeamSystem S.P.A. 1. Valuation of TeamSystem S.P.A. using Free-Cash-Flow-to-Equity Model (FCFE) (1) Calculate Free cash flow to equity per year: FCFE = NI – (CAPX – DEPR) –NWC + Net Borrowing (2) Discount Rate / Equity Rate: Elson estimated discount rate to be 14%. (Source: Elson believed that a 14 percent discount rate would appropriately capture the risk of the cash flows.) (3) Present Value: Note: the company is expected to grow by 6% forever since
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CASE STUDY Wal-Mart Valuing Wal-Mart Stock Introduction: Wal-Mart was founded by Sam Walton in 1962 and was based in Bentonville‚ Arkansas. Wal-Mart in the successive years has grown to be the world’s largest retailer and has more than 4000 stores worldwide. Wal-Mart employs 1.7 million workers worldwide and boasts of 138 million customers every week. Rachael Martin was an investment advisor and was tasked to valuate the Wal-Mart stock with the help of three widely accepted models i.e. dividend
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Prospective analysis – forecast The previous reports have already approached the industry and financial analysis of Myer. This report will analyze the forecast‚ valuation and application of Myer‚ including forecasting the major data‚ valuating share price under four model and discussing the opportunity and challenge of Myer. 1. Forecast sales growth rate As one of the most important indicators‚ sales can reflect directly Myer’s financial performance and influence other indicators. Therefore
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|Corporate Finance | |Nike Case | | | | |
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Dividend discount model Dividend discount model (DDM) is a way of valuing a share based on the net present value of the dividends that you expect to receive in the future. According to the DDM‚ dividends are the cash flows that are returned to the shareholder. FY 2002 2003 2004 2005 2006 2007F 2008F 2009F Share price 0.155 0.150 0.230 0.370 0.450 0.450 Dividends per share 0.005 0.012 0.014 0.012 0.013 0.019 0.0178 0.020 Dividend Growth 0.0833 0.258 0.014 0.014 Dividend rates
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1. Weighted Average Cost of Capital (WACC) is used to determine the average cost of financing a company. Companies are funded using both debt and equity and both require varying rates of return. WACC allows you to put a “weight” on the different types of financing and their differing rates to get a total cost of capital. Team 12 does not agree with Joanna Cohen’s WACC calculation because we feel she took some liberties in her numbers‚ the most notable being that of equity. Ms. Cohen used book
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Ex/Depreciation Inventory Turns A/R Turns A/P Turns Cash Conversion Cycle Liquidity CA/CL CA (ex CSH)/CL Quick Ratio Cash Ratio Solvency L-T D/A Interest Coverage Debt to Long-Term Capital Debt Coverage Free Cash Flow FCFF FCFE FCFF per share (basic) FCFE per share (basic) $ $ $ $ 432‚140 732‚252 0.70 1.18 $ $ $ $ 793‚356 756‚922 1.28 1.22 $ $ $ $ 899‚189 1‚048‚848 1.48 1.73 $ $ $ $ 1‚170‚724 1‚597‚679 1.97 2.68 $ $ $ $ 2‚344‚300
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the Dividend Discount Model (DDM)‚ the Capital Asset Pricing Model (CAPM) and the Price/Earnings Multiple. Based on these three calculations‚ we wish to determine the profitability of Coca Cola’s stock and ultimately advise Jessie’s clients to either purchase‚ sell or hold their existing Coca Cola stocks. Methodology In order to find the future stock price of Coca Cola‚ we will be analyzing the Capital Asset Pricing Model (CAPM)‚ the Dividend Discount Model (DDM) and the Price/Earnings Multiple
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