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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Optimal Risky Portfolios 23 Chapter 9 The capital asset pricing Model 24 Chapter 11 The Efficient Market Hypothesis 25 Chapter 12 Behavioural Finance and Technical Analysis 26 Chapter 17 Macroeconomic and Industry Analysis 27 Chapter 18 Equity Valuation Models 28 Chapter 19 Financial Statement Analysis 29 Chapter 24 Portfolio Performance evaluation 30 Chapter 27 The Theory of Active Portfolio Management 31 Information about the unit Welcome to: BUS311 Investment Analysis
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Guide for assignment Executive Summary - Summarize the content of the whole report. Highlight anything that you feel is very important. About half to one page long Do not share with other content Opinion of value Mention your proposed selling price. Suggest whether your boss should buy the business or not. Support your claim. Should mention that opinion has been made under the assumptions and limiting conditions. About one page Do not share with other content Assumptions and Limiting
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Nike Executive Summary Kimi Ford manages a large mutual fund for NorthPoint Group. Her company is trying to decide whether or not to invest in Nike’s stock‚ which has been declining in price in the past year. Kimi has asked her assistant‚ Joanna Cohen‚ to estimate Nike’s weight average cost of capital (WACC) to help make this decision (Case 13‚ pg. 58). We looked at Joanna’s estimates and discovered a few problems that she made when estimating her cost of capital. We found Joanna’s estimates
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Assignment: Case No. 2 ACTG 4650‚ Phillips Due date: June 28‚ 2012 Trueblood Case 04-9 Healthcare Depot‚ Part 3 only. You will find the case at the following website. Just pagedown to find case 04-9. http://www.deloitte.com/us/truebloodcases Since we are not doing parts 1 and 2‚ assume that DDC Distribution and HC Holding are aggregated to be one reporting unit. Type your answers using Microsoft Word. “Goodwill is defined as an asset acquired in a business combination
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VALUATION TECHNIQUES Vault Guide to Finance Interviews Valuation Techniques How Much is it Worth? Imagine yourself as the CEO of a publicly traded company that makes widgets. You’ve had a highly successful business so far and want to sell the company to anyone interested in buying it. How do you know how much to sell it for? Likewise‚ consider the Bank of America acquisition of Fleet. How did B of A decide how much it should pay to buy Fleet? For starters‚ you should understand that the value
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Equity Valuation: Discounted Cash Flow and Residual Income Models Introduction Valuation plays a very important role when companies are trying to increase their value‚ raise money‚ acquire another firm or sell a subsidiary‚ also when a company decides to go public. Managers‚ investors and shareholders need to have the most accurate and reliable information in order to make decisions‚ that is why valuation is a fundamental exercise in corporate finance. It is pretty evident that whatever
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Valuation : * Price earnings ratio : DESCRIPTION | Mar-12 | Mar-11 | Mar-10 | Mar-09 | Mar-08 | Price-earnings ratio | 23.04 | 24.23 | 12.71 | 7.25 | 12.17 | This ratio reflects the following factors : growth prospects‚ risk characteristics ‚shareholder orientation ‚corporate image and the degree of liquidity.It indicates company performance and forecast future performance.Ratio is decreasing and it is good sign because investors will get high earnings.But risk will
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AnalysisCase: Weymouth Steel CorporationChapter 4: Point of ViewCase: Smith Financial CorporationChapter 5: Message: Content and ArgumentCase: Cuttyhunk Bank (A)Chapter 6: StructureCase: McGregors Ltd.Department Store Chapter 7: Choosing MediaCase: The Timken Company Chapter 8: Style and Tone Case: Vanrex‚ Inc.Part 2: ApplicationsChapter 9: Giving and Receiving FeedbackCase: Bailey and Wick Chapter 10: Managing Meetings Case: Lincoln Park Redevelopment Project Chapter 11: Communicating ChangeCase: Hammermill
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