Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Valuation of Business
A business may be valued for different type of reasons that as for merger, acquisition, or takeover or liquidation or outright sale. During purchasing a business, a buyer will be interested in not just the assets also for the future income this business is expected to create.
Theoretical value - within theory, if a purchaser buys a business, he is only buying a stream of future income flows and to arrive on the real purchase price the buyer will:
a) Consider the estimated probable cash flows.
b) Discount cash flows to their current value.
c) Add together the split amounts to provide the present value of income stream. Whereas future income flows are constant:
PV= C (1-(1+r)-n/r)
Where like: PV = Present value of income stream
c = Inflow per annum
r = Discounting rate
n = Number of years the inflows will last
Agency Relationship between Auditors and Shareholders Shareholders appoint auditors as per the provisions of Section 159(1)-(6) of the Companies Act. The auditors are believed
Consider a binomial model of a risky asset with the parameters r = 0:06, u = 0:059, d = 0:0562, S 0 = 100, T = 1, 4t = 1=12. Note that u and d are monthly effective rates of retur
'The most significant function of any Central Bank is to undertake monetary control operations'. Discuss with specific reference to the Bank of England, highlighting its current
Financial analysis: Financial analysis (also defined to as financial statement analysis or accounting analysis or Analysis of finance) defines to an assessment of the viabilit
Leverage or Gearing Ratios Leverage or gearing ratios are as follow: a) Debt ratio = Total debts/Total assets Whereas total debt = fixed charge capital + liabilities.
Uses and Application of Ratios Ratios are required in the following ways via managers in different firms. 1. Evaluating the efficiency of assets employment to generate sale
You own a two-bond portfolio. Each has a par value of $1,000. Bond A matures in five years, has a coupon rate of 8 percent, and has an annual yield to maturity of 9.20 percent. Bon
Asset Based Valuation - Example K and K Company Limited is planning to absorb three other companies so as to realize its sales records of Sh.500, 000 per annum. Its accountan
From the following selected operating date, determaine the DOL. Which company has the greater amount of business risk? Why? Particulars A Ltd
Management of Inventories Manufacturing firms contains three major kinds of inventories as: Work-in-progress Finished goods inventory Raw materials The firm
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd