Explain the term present value of the firm’s operations, Financial Management

Assignment Help:

Explain the term “present value of the firm’s operations” (also known as Enterprise Value).  What does this number represent?

The present value of the free cash flows of the company denotes the market value of the firm’s core income generating operations. In the world of finance and investing this is occasionally known as the firm’s Enterprise Value.  It is not the total market value of the whole company, though, or the total market value of the company’s assets, since the current, or non-operating assets of the company have not yet been accounted for.


Related Discussions:- Explain the term present value of the firm’s operations

Explain significance of international financial management, Why is it impor...

Why is it important to study international financial management? Answer:  We are now living in a world in which all the main economic functions, that are production, consumption,

Explain why warrants are rarely exercised, Explain why warrants are rarely ...

Explain why warrants are rarely exercised unless the time to maturity is small? Warrants are hardly ever exercised until the time to expiration is small because the market pric

Debentures, A 16% debenture of R5 000 is redeemable at a premium of 10% aft...

A 16% debenture of R5 000 is redeemable at a premium of 10% after 5 years. The fair rate of return on similar debentures is 14% before tax. Calculate the present value of the capit

Sensitivity analysis, A division of Saron plc is considering introducing a ...

A division of Saron plc is considering introducing a new product.  The product is the result of work undertaken by the division's research and development department - the expendit

Powerpoint, Individual Project Due Date: Mon, 06/08/15 Points Possible: 100...

Individual Project Due Date: Mon, 06/08/15 Points Possible: 100 Deliverable Length: 8-10 slides with speaker notes Description: You are the CFO of a 400-bed hospital in Texas

Interest rates over the business cycle, Interest rates are the key de...

Interest rates are the key determinants of business cycles in emerging market countries. In the past, several economies had experienced frequent and great changes

Operating cycle, discuss the applicability of operating cycle to poultry bu...

discuss the applicability of operating cycle to poultry business(consider broilers)

Explain the term- market penetration, Explain the term- Market penetration ...

Explain the term- Market penetration A strategy which pursues to increase sales of existing services or products to the same market. Price reduction strategies Aggre

Explain the term - timing of benefits, Explain the term - Timing of Benefit...

Explain the term - Timing of Benefits A more significant technical objection to profit maximisation, as a guide to financial decision making, is that it ignores the differen

General functions of financial management, GENERAL FUNCTIONS Several f...

GENERAL FUNCTIONS Several functions of financial management currently range from planning of funds to distribution of earnings and also are extend beyond.  Some of the well-kn

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd