Illustrates financial consultant has valuations of company
A financial consultant obtains various valuations of my company when this discounts the Free Cash Flow (FCF) as opposed to when this uses the Equity Cash Flow. Is it correct?
Expert
No. Various methods of valuation by discounting flows always give the same value (when done correctly). In Fernández (2006 and 2004) shows that 10 methods of valuation through the method of flows discount always give the same value. That result is logical as all the methods analyze identical reality under the same hypothesis; they are different just in the cash flows they use as a starting point into the valuation.
How can any industrial company inflate the value of its inventory so as to decrease net income and the taxes is has to pay in a year?
Our company (A) is going to buy the other company (B). We need to value the shares of B and, thus, we will use three options of the structure Debt/Shareholders’ Equity in order to obtain the WACC as: 1) Present structure of A
I have a doubt about the Enron case. How could this prestigious investment bank advice investing while the quotations of the shares were falling?
According to the valuation method depends on tax shields, the value of the company (Vl) is the value of the unleveraged company (Vu) in addition with the value of tax shields (VTS), thus, the higher the interest and the higher the VTS. Therefore, does
provide three examples of mutually exclusive projects?
What are the different types of mathematics found in quantitative finance?
I want to know how much do you charge for doing the project?
You work in Walt Disney Company’s corporate finance and treasury department and have just been assigned to the team estimating Disney’s WACC. You must estimate this WACC in preparation for a team meeting later today....?
Write some point regarding Market for Corporate Bonds.
Cheever Corp stock is selling at $40 a share. Its dividend in subsequent year will be $2 a share and its β is 1.25. Crane Company has similar growth rate as Cheever. The current stock price of Crane is $55 a share, and its dividend this year is $3. The riskless r
18,76,764
1944090 Asked
3,689
Active Tutors
1416656
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!