ECN372 Corporate Finance 2‚ 2012/2013 Problem Set 5: Solutions 1. a) The face value of debt is given by: 0.5 × F + 0.5 × 40 = 60 ⇒ F = 80 The value of the firm is: V = 0.5 × 150 + 0.5 × 40 = 95 The value of equity is: E = 95 − 60 = 35 b) The value of debt: D = 0.5 × 50 + 0.5 × (20 − 10) = 30 The value of the firm is: V = 0.5 × 70 + 0.5 × (20 − 10) = 40 The value of equity is: E = 40 − 30 = 10 c) If the firms were to merge then: The value of debt: D = 0.5 × (80 + 50) + 0.5 × (40 + 70
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Homework 3 Due at 8:30 PM on Thursday October 18 on Elearning 1. Suppose that a firm’s production function is given by Q =F(K‚L) = 3K+2L . What is the marginal rate of technical substitution between capital and labor when K=3 and L=4? (The rate at which the firm can substitute between
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Identify and describe your segment • Boeing Commercial Airplanes is a segment of the Boeing Company. As a segment‚ it is committed to being the leader in commercial aviation through its vast amount of airplanes offered and services that help to deliver superior design‚ efficiency‚ and value to customers all over the globe. II. Competitive structure in equilibrium (your segment within its value system) A. Buyers 1. Identify your buyers. Orders through November 20‚ 2012 737 747 767 777
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[pic] ASSIGNMENT #1 DUE ON SUNDAY‚ JUNE 24 NAME: SEC: ID: ______________ 1. Intraco Co. has the following account balances for the end of the year Dec 31‚ 2010 |Selling and administrative salaries |$120‚000 | |Purchase of raw materials |280‚000
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of India) Business Valuation Page 1 of 62 Business Valuation Practise Standard TABLE OF CONTENTS CHAPTER I - PREAMBLE 1.1 Background……………………………………………………………………… …………………4 1.2 Purpose & Objective of the Standard…………………………………………………….5 1.3 Introduction and Scope of the Standard………………………………………………....7 1.4 Exceptions from the Standard…………………………………………………………….9 CHAPTER II – QUALITATIVE AND ETHICAL STANDARDS……………………..11 CHAPTER III – VALUATION SERVICES 3.1. Valuation Engagement……………………………………………………………
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XYZ Company Limited Date Valuation Report: DUMMY Executive Summary INDUSTRY: XX XYZ Company Limited (hereinafter referred to as “XYZ” or “the company”) is a XX manufacturing company and markets its products under the brand name XX in the XX region of India. Business valuation summary of XYZ Multiple used EV/tonne method Equity value Rs mn Value per share (Rs) Rs 5‚809 per tonne EV/EBITDA method 4.5x Discounted Cash Flow method NA Book value (FY10) NA Equity
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EQUITY VALUATION MODELS Equity Valuation -Determining the total value of a company involves more than reviewing assets and revenue figures. An equity valuation takes several financial indicators into account; these include both tangible and intangible assets‚ and provide prospective investors‚ creditors or shareholders with an accurate perspective of the true value of a company at any given time Significance of Equity Valuation Model -Equity valuations are conducted to measure the value of
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Prior to the IPO‚ the market perceived the valuation with positive approval signaled by both Facebook’s private market share auctions and analyst’s reviews. However‚ as it will be examined below‚ Facebook has been significantly over-valued by the underwriters. In addition‚ the market changed its opinion of Facebook shortly after the IPO‚ criticizing the valuation of the company was too high. The differences in market reaction showcase shortfalls in valuation‚ and it is recommended that analysts and
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Valuation of Mergers and Acquisitions SUBMITTED BY: DEBAYAN MUKHERJI PGDM ’"2008-2010 ROLL NO: 08PGDM083 INTERNATIONAL MANAGEMENT INSTITUTE‚ NEW DELHI CONTACT NUMBER: 09717443910 EMAIL : debayan.p08@imi.edu Valuation of Mergers and Acquisitions Mergers and acquisitions (more generally‚ takeovers) are an important means through which companies achieve economies of scale‚ face the competition‚ or respond to economic shocks. For example ‚how the $54 billion US chemical major
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Valuation project report Valuation of the Incentive Stock Options for Procter & Gamble Co. Name: Haining Jiang Company background: In this valuation project‚ I will analyze a company which is mature and I am interested in. The name of the company is Procter & Gamble Co. the Procter & Gamble Company‚ together with its subsidiaries‚ engages in the manufacture and sale of a range of branded consumer packaged goods. The company operates in five segments: Beauty‚ Grooming‚ Health
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