Use a DCF valuation to estimate the company's worth. Discuss the pros and cons of using this
Fantastic news! We've Found the answer you've been seeking!
Question:
Use a DCF valuation to estimate the company's worth. Discuss the pros and cons of using this method.
Transcribed Image Text:
Cash and cash equivalents Trade receivables Receivables from financing activities Inventories Other current assets Total current assets Investments and other financial asset Deferred tax assets Property, plant, and equipment Intangible assets (1) Goodwill Total assets Trade payables Current tax payables Other current liabilities Total current liabilities Long-term debt Other liabilities Total equity Total liabilities and equity 31-Dec-2013 798 206 863 238 115 2,219 37 42 568 242 787 3,895 486 104 475 1,065 317 197 2,316 3,895 31-Dec-2014 1,077 184 1,224 296 64 2,845 47 112 585 265 787 4,641 536 110 774 1,420 510 233 2,478 4,641 30-Jun-2015 258 154 1,181 352 100 2,045 48 149 589 283 787 3,900 578 182 836 1,595 2,267 239 -201 3,900 Cash and cash equivalents Trade receivables Receivables from financing activities Inventories Other current assets Total current assets Investments and other financial asset Deferred tax assets Property, plant, and equipment Intangible assets (1) Goodwill Total assets Trade payables Current tax payables Other current liabilities Total current liabilities Long-term debt Other liabilities Total equity Total liabilities and equity 31-Dec-2013 798 206 863 238 115 2,219 37 42 568 242 787 3,895 486 104 475 1,065 317 197 2,316 3,895 31-Dec-2014 1,077 184 1,224 296 64 2,845 47 112 585 265 787 4,641 536 110 774 1,420 510 233 2,478 4,641 30-Jun-2015 258 154 1,181 352 100 2,045 48 149 589 283 787 3,900 578 182 836 1,595 2,267 239 -201 3,900
Expert Answer:
Answer rating: 100% (QA)
Answer To estimate the companys worth using a Discounted Cash Flow DCF valuation we need to follow these steps 1 Forecast the companys future cash flo... View the full answer
Related Book For
Entrepreneurial Finance
ISBN: 978-1305968356
6th edition
Authors: J. Chris Leach, Ronald W. Melicher
Posted Date:
Students also viewed these finance questions
-
Use the attached "words.txt" file to store the words along with their ranks in an AVL tree. Then provide the user the option to search for any word. If the word exists the program displays the rank...
-
The balance sheet for Compre Ltd is presented below. Perform a horizontal analysis of the change (in absolute and percentage terms) between the year-end figures. Identify any significant variations...
-
Use Foot Locker, Inc.s balance sheet and other information provided on the next page to answer the following questions. a. Compute Foot Lockers working capital in 2013 and 2012. b. Compute Foot...
-
If a large chilled water plant has 6 chillers and 5 of them are operating at 1 0 0 % , when the operator starts the 6 th chiller, to what percent do the first 5 chillers unload? What formula do you...
-
Consider the following inertia tensor: Perform a rotation of the coordinate system by an angle θ about the x3-axis. Evaluate the transformed tensor elements, and show that the choice θ =...
-
Gordons plc has an annual turnover of 3 million and a pre-tax profit of 400,000. It is not quoted on a stock exchange and the family owning all the shares has no intention of permitting the sale of...
-
Name two performance measures useful in evaluating investment centers.
-
Shader Storage Technologies produces refrigeration units for food producers and retail food establishments. The overall average temperature that these units maintain is 46 Fahrenheit. The average...
-
Transportation project planning is : a. a public activity seeking increased trade and lower trade and lower cost of living b. Best done by private sector as they recognize return on investment c....
-
In this mini-case you will perform some procedures required as a part of audit planning. For ease your audit manager has already organized the workpapers and completed several of the required...
-
Determine the least squares regression line equation (y= ax+b) for the following questions: 1. 2. X y 0 5.8 2 5.7 3 5.2 5 2.8 6 1.9 6 2.2
-
Compute the Fixed Rate on a 10 year $100 million vanilla swap, where the cash flows are bond like, using the forward rate methodology and the spot rate approach. Assume annual compounding. Year 1 -...
-
Provide recommendations on how this new collaboration between SAA and Kenya Airways can dominate the international market
-
A company has been paying a $0.88 dividend and as it faces no growth opportunities it is expected that the dividend will not change in the future. If investors require a 23.21% return for this...
-
11. Zip Inc. produces nano-tech equipment. It has a debt-equity ratio of 0.5. The beta of its stock is 1.30. Its bonds pay a semiannual coupon of 9% and have 3.5 years to maturity. The next coupon...
-
Trading of the Bitcoin spot ETF is off to a rip-roaring start. More than $4.6 billion shares of Bitcoin ETFs were traded Thursday. This impressive volume is despite pushback from some of the biggest...
-
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Selling price per unit Weedban $ 9.00...
-
In a paragraph of approximately 150-200 words, analyze a film or TV/Streaming Show poster of your choosing by focusing on the ways in which representations in the poster are gendered. Include an...
-
From the HeadlinesThe Lovely Touch in Raising Cupcake Dough: Discuss the foundations of the itemized cupcake costs for the $3.00 cupcake in relationship to the possible new costs and break even...
-
Is the compensation paid to venture capitalists (e.g., 2 percent management fee and 20 percent carried interest) reasonable? What are a funds investors buying with this compensation?
-
Describe how expected present value is calculated when there are two or more scenarios.
-
Would the directed spanning tree algorithm also find an undirected spanning tree if the given graph was connected and undirected? Explain.
-
Because of the continuity assumption, it is impossible to prepare meaningful financial statements for a bankrupt company.
-
The unit-of-measure assumption states that it is meaningful to express the affairs of an enterprise in currency units.
Study smarter with the SolutionInn App