Nobody downloaded yet

Corporate Valuation - Book Report/Review Example

Comments (0) Cite this document
Asset in place are tangible assets in an organization. Examples include building machines and inventory. Growth options; Non-operating assets refers to marketable securities or ownership of non-controlling interest in other companies.
a) Net operating working capital is…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.2% of users find it useful
Corporate Valuation
Read TextPreview

Extract of sample
"Corporate Valuation"

Download file to see previous pages NOPAT = Operating Income multiplied by (1-tax rate).
b) Value of operations is equal to cash flows multiplied by (1 + current growth rate). Horizon value is the value after which the terminal cash flows are constant; Corporate valuation model is the model used by business appraisers to determine qualification for loans, the cost of disposing the company and improve its status.
c) Value-based management is an approach geared at maximizing shareholder value by creating, managing and measuring value in an organization. Value drivers increase the value of a product by enhancing its perception e.g. cutting-edge technology; EROIC refers to the returns expected out of a new investment or venture.
d) Managerial entrenchment is the basis for establishing managerial efficiency. A company whose managers cannot be replaced or be judged by their performance will cost less and vice versa is true. Non-pecuniary benefits refer to those benefits that do not consist of monetary compensation.
e) Greenmail is the money paid to a party to stop an aggressive behavior e.g. during mergers and acquisitions, poison pills refer to a strategy used by companies to discourage hostile takeovers , restricted voting rights refer to restrictions of voting base on powers vested on an individual (Bauer, 2005).
f) Stock option is a mechanism of allowing employees to reap the benefits of their company’s growth. ESOP is used to provide a share market for departing owners of successfully closely held companies.
The corporate valuation model allows determination of the value of an asset in the organization. For instance, the value of machinery, property and inventory is established and compared to similar items the company is selling.
4. There are some actions entrenched managers may undertake that may affect shareholders. For instance, if management procure goods from a supplier at a higher price or sell at a lower price than the norm, the company will ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Corporate Valuation Book Report/Review Example | Topics and Well Written Essays - 250 words”, n.d.)
Corporate Valuation Book Report/Review Example | Topics and Well Written Essays - 250 words. Retrieved from
(Corporate Valuation Book Report/Review Example | Topics and Well Written Essays - 250 Words)
Corporate Valuation Book Report/Review Example | Topics and Well Written Essays - 250 Words.
“Corporate Valuation Book Report/Review Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Executive summary for Corporate Finance Valuation
...?Corporate Finance Valuation Task Corporate Finance Valuation Executive summary This paper provides comprehensive analysis of corporate finance valuation with focus to shareholders value evaluation. The element is a potential performance or financial indicator in various corporations. This is because it gives clear information on the return on investment and the shareholders value that is payable to investors. The analysis focuses on Balfour Beatty Corporation that is a high rank engineering company with global presence. The company provides a wide range of products and services with an aim of meeting its...
10 Pages(2500 words)Essay
Valuation of Corporate Social Responsibility Report
...Valuation of Corporate Social Responsibility Report The main topics from the course discussed in the article Valuation of Corporate Social Responsibility Report are ethics and social responsibility (Dagiliene & Gokiene). Due to the competitive nature of the marketplace public corporations must report both financial and non-financial information. The CSR report is considered one of the most important non-financial reports that companies issue once a year. In general in the business industry there is a lack of qualitative and quantitative valuation of social information. The main goal of the article was to investigate the...
4 Pages(1000 words)Article
Corporate Valuation, Capital Structure and Dividend policy
...? Capital Structure and Dividend Policy Capital Structure and Dividend Policy Introduction For the purpose of this report, two companies have been chosen - Limited Brands Inc. and News Corporation. Limited Brand Inc. is a worldwide company which sells lingerie, personal care and beauty products as well as apparel and other accessories. The company has more than 2,600 stores operating in the US. Limited Brands is also selling its products through more than 680 companies worldwide (Limited Brands Inc, 2013). News Corporation is one of the top television groups in the world. Its business includes the best broadcasting company of United States called Fox Broadcasting Company. News...
8 Pages(2000 words)Essay
Mercury Athletic Footwear Case Study: Corporate Valuation
...? Mercury Athletic Footwear Case Study: Corporate Valuation First Mercury Athletic Footwear Case Study: Corporate Valuation Takeovers of existing companies and especially a manufacturing company are fraught with uncertainty and a great degree of grey areas. John Liedtke and Active Gear would have to be very careful that the new acquisition does not only distract from their own continued and steady growth and that the reasons for which West Coast Fashions saw it fit to get rid of Mercury do not bog down Active Gear in the same way. So John Liedtke would have to be very careful and strategic in his negotiation. This is a company whose growth has been faltering at best and...
6 Pages(1500 words)Essay
Mercury Athletics Footwear: Corporate Valuation
...? Mercury Athletics Footwear: Corporate Valuation Introduction Following the information provided in the case study, here is the calculation of the value of Mercury Athletic Footwear as an independent firm using the free cash flow method. Free cash flow analysis is the most suitable method of determining a possible acquisition. The analysis and calculations regarding the present value of Mercury Athletic Footwear are shown. I have attached the workings in an excel document. Value of Mercury Athletic Footwear 2007 2008 2009 2010 2011 1 2 3 4 5 Revenue 479,329.00 489,028.00 532,137.00 570,319.00 597,717.00 Less: Cost of Revenue 423,837.00 427,333.00 465,110.00 498,535.00 522,522.00 Less: SA&A 8,487.00...
6 Pages(1500 words)Essay
The Valuation of Real Option in the Corporate Finance
...The Valuation of Real Option in the Corporate Finance As a discipline, the analysis of real option extends from the applications its conducts in the corporate finance to making of decisions under uncertainty in general. This is by adapting the various techniques developed for the financial options in the real life decisions. For instance, R&D managers may use these options in real valuation to assist them in allocating their R&D budgets among different projects. This makes the decision makers to be more explicit on the various assumptions that underlie in their projections. This makes real options valuation one of the ways employed in the formulation of...
11 Pages(2750 words)Assignment
Corporate Valuation and Strategy ASSIGNMENT 3 VALUATION OF H. J. HEINZ COMPANY AS OF APRIL 29, 2012
... Finance and Accounting Incorporation of the Heinz Company in 1900 in Pennsylvania succeeded to the partnership business that operated under one name. The name had been developed from a food industry that was established in 1869 in Sharpsburg by Henry Heinz. It has numerous subsidiaries. It produces wide-ranging line of food products across the globe (ANNUAL REPORT, 8). The Company has existed as one of the most competitive companies in the food industry for over 140 years. The Company’s main products include condiments, frozen food, beans, infant nutrition, ketchup and soups. The company’s products are manufactured and packaged in line with the required customer standards to provide safe and wholesome foods to the consumers... Finance and...
6 Pages(1500 words)Assignment
Corporate Valuation, Capital Structure and Dividend Policy
...Company Analysis Corporate Valuation, Capital Structure and Dividend Policy CompanyAnalysis Corporate Valuation, Capital Structure and Dividend Policy Apply Inc. (Apple) was incorporated on January 3, 1977 and is famous for designing, manufacturing and marketing of media devices, personal computers, mobile communications and portable digital music players. They are also responsible for selling a variety of related soft ware’s, peripherals, networking solutions and third party digital content and applications. The product and services of the company include iphone, Mac, Apple TV, Pad and IPod. They have a portfolio of professional and consumer software...
11 Pages(2750 words)Book Report/Review
Connection between corporate governance and company valuation in emerging market countries
...Connection between corporate governance and company valuation in emerging market countries Contents Literature Review 3 Answer 7 Answer 2 9 Answer3 10 Answer 4 12 Answer 5 14 References 16 Literature Review A number of studies and reports have been presented by different academicians and scholars with an objective of establishing a linkage between the different corporate governance practices and then valuation of the firms, especially in the emerging countries like China, India, Russia, Brazil etc. Different researchers have provided evidences to establish strong connections between corporate governance, legal infrastructure, corruption and the value and performance of the firms. According to the work proposed by LaPorta, Silanes... and...
18 Pages(4500 words)Assignment
Corporate Valuation
...Corporate Valuation The companies that grow, in terms of revenues, at the rates higher than 15% annually can be defined as high-growth companies (Koller et al., 2005). Traditional valuation methods such as the Gordon growth model, dividend discount model, free cash flow to equity, residual income model and the likes are more suitable for the ongoing established companies with stable growth and having a long history of dividend distribution for the last several years or decades. It is quite likely that many high-growth companies in new technology fields may not have a long dividend history or many of them may not have even begun declaring dividends either due to funds needed for the growth of business or for some other reasons... . ...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Book Report/Review on topic Corporate Valuation for FREE!
Contact Us