| |CASHFLOW PROJECTION FOR 12 MONTHS | |ADISA DUROJAIYE & CO.‚ | TABLE OF CONTENTS NOTES AND ASSUMPTIONS TO THE CASHFLOW PROJECTIONS CASHFLOW PROJECTIONS CONCLUSION AND RECOMMENDATIONS
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Case 19 1. Worldwide Paper Company has an opportunity to take on a new project. With this project they would be considering an addition of a new on site Longwood wood yard. The yearly cash flows for this investment seem to be very good if everything remained or exceeded the assumptions on which the cash flows $18 million is not a small investment but in the long run the company catching up to get back the invested money and also allowing them to make huge profits. The company is paying a 40% tax
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1 - Energy Costs Find information on energy cost: Advantages (government websites) 2 - Cost of Equity‚ Appropriate Discount Rate (WACC) Cost of equity 1. Formula Risk Free Rate + (Market Premium x Overall Company Beta) 2. Each part a. Risk free rate (10-year T-bill) i. bond rating chosen * interest rate * b. Market premium c. Beta i. Appropriate Discount Rate (WACC) 1. Formula Weight of Debt x After-Tax Cost of Debt) + (Debt to Equity x Cost of Equity) 2. WACC (important – why is it important
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corporate finance. 3. Which of the following correctly completes the next sentence? The value of any asset is the present value of all future a. 0 profits it is expected to provide b. 0 revenue it is expected to provide c. 0 net working capital it is expected to provide d. 0 cash flows it is expected to provide Objective: Compare and contrast the market value of an asset or liability from the book value. 4. Original maturity refers to a. 0 a technical accounting term that encompasses the
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545 - = Net Realizable Value 538 532 1 Beg. allowance $20 + Bad debt expense $5 – Write-offs ? = End. Allowance $13 Write-offs = $12 2 Beg. accounts receivable $558 + Sales $5‚710 – Write-offs $12 – Collections ? = End. accounts receivable $532 Collections = $5‚711 Req. 3 2006 2007 2008 Net Income 510 497 $(312) ÷ Net Sales 4‚700 5‚695 $5‚710 = Net Profit Margin 10.85% 8.73% (5.46)% The company’s net profit margin has fallen each year while net sales have risen‚ with a net loss reported
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Net Assets Value per Units Continue Assets 1- Cash:- A- Cash in Bank. (Bank Statement from Bank All Accounts KD-USD-EURO-YEN ) . B- Cash on hand. (Any Amount takes Management Fund Real Estate Maintenance Expenses in the Building). C- Unclear Cheques. (Any Check Not Respond By Bank). 1-Total Cash 2- Investment:- A- Investment in Real Estate. (Cost Building + Evaluation
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flow targets and maintain Stryker’s 20% growth benchmark. To what extent have they been shaped by elements of corporate finance theory? They are heavily influenced by corporate finance theory All submissions are required to show the net present value (NPV)‚ internal rate of return (IRR) and payback period. They need to highlight the project’s anticipated outgoing cash flow and earnings effects on the company and describe specific risks that could affect the projects abitily to deliver projects
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projects internal rate of return‚ the more desirable it is to invest in the project. Some ways to use the IRR method are: • Discounted Cash Flow Analysis - Find the interest rate return that you would receive as your investment return rate. • Capital Budget Planning - Go through the capital budget process so that you make the best economic decision. • Discounted Cash Flow Analysis - When you calculate IRR you will have one number for an objective comparison between capital projects.
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Bolero Corporation Income Statement For Year Ended June 30‚ 2005 Revenue from Sales: Sales Less Sales Returns and Allowances Net Sales Cost of Good Sold: Merchandise Inventory‚ July 1‚ 2004 Purchases Less: Purchases Returns and Allowances Purchases Discounts $570‚960.00 12‚960.00 $558‚000.00 $163‚200.00 $372‚720.00 $6‚360.00 5‚520.00 Net Purchases Add Freight In Delivered Cost of Purchases Cost of Goods Available for Sale Less Merchandise Inventory‚ June 30‚ 2005
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expect an IPO valuation at 3.67 times revenues‚ producing gross proceeds of $764m with a present value of $116m (using our 60% discount rate). Assuming that Accessline meets this revenue target‚ and that no future funding is required‚ Apex will take a slight loss on its required rate of return‚ barring the voluntary distribution of the dividend from the board of directors‚ on which we are not offered a seat. The present price per share at such an exit would be approximately $7.84. However‚ given Accessline’s
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