Appraisal Report of Air Thread Connections

With Paint-Pen having a debt ratio of 22.74%, Paint-Pen is less risky and has high debt capacity. Adding this high capacity to borrow will add to the value of the combined firm. This acquisition will increase the debt capacity of the combined firm. Aside from the tax benefits that can be exploited after acquiring Paint-Pen, Mr. Hamer’s firm can also put value to the effect of diversification as the firm can diversify by just at the acquisition cost (less other synergies).

1. Given the proposed financing plan, describe your approach (qualitatively) to value AirThread. Should Ms. Zhang use WACC, APV or some combination thereof? Explain. (2 points)

In addition, this decision dropped SNC’s from 6.5%, to 6%; however, their bills were paid on time causing SNC’s DSO to drop. Beginning a partnership with Mega-Mart is a good idea. However, this partnership will drop margins and reduce SNC’s EBIT. The second opportunity is to expand the company’s online presence. Because SNC wishes to expand their operations into new retail markets, its company was presented with an opportunity to collaborate with Golden Years Nutraceuticals. The purpose of the partnership is so they could reach a larger, more diverse consumer base. From 2016-2018, this partnership reduced SNC’s DSO figures because its web sales began to be collect more rapidly from seven, to three, to two days throughout the duration of 2016-2018. Moreover, SNC also saw a 10%, a 5%, and a 3% increase in their sales from 2016-2018. This will be an ideal opportunity for SNC as it will allow them to increase their sales with having little-to-no effect on the company’s working capital. The third opportunity is to develop a private label product. SNC has a partnership with Fountain of Youth Spas, and Fountain of Youth Spas wishes SNC to develop their own private label product so that SNC can expand their nutraceutical products line and increase their sales and consumer base. Doing this would increase SNC’s 2016-2018 sales by 5%, 4%, and 3%. Additionally, it will also increase margin by 2% while increasing

They derived this projection through estimating savings from increased operating efficiencies and by consolidation of duplicate functions. The present value of the synergies would range from $1.71 to $2.14 billion (Assuming the cash flows to be perpetuity using a discount rate of 8.3%). However, Vulcan’s leadership scoffed at Martin Marietta’s estimate of the merger synergies. Instead Vulcan CEO, Donald James was convinced the true value of synergies would not exceed $50 million per year. The present value of this synergy estimate would be $428 million (Assuming the cash flows to be perpetuity using a discount rate of 8.3%). This is summarized in table 2 below.

Current market prices: Both McCaw and AT&T’s common shares are publicly traded. The market value of the equity can be summed with the book value of debt to give a rough estimate of the firm’s current value. The calculation that follows suggests a value for McCaw’s assets of about $10.5 billion. McCaw’s shares may be trading at a minority discount, because the CEO holds a controlling block of shares. To purchase a partial

a) We calculated the total value of AirThread (before considering any synergies) by subtracting the value of the non-operating assets from the going concern value. This gave us a total value of $6237.85.

3) Interaction with people who use the part – Mr. Watkins frequently visits the plant floor and talks with the workers to see if there are any concerns with materials. If a need exists, a requisition form is filled out and the purchase will be made. These requests are usually from members of the engineering team and each engineering manager is responsible for forecasting, quality, and controlling cost for his/her specific section.

The Cost of debt is determined by using the average of YTM of the 4 JetBlue debt instruments provided in Exhibit 4. The exact value is 6.91%, and a CAPM cost of equity is determined to be 10.50% using the risk-free rate, market risk premium and comparable beta from Southwest of 1.10. The cost of capital is determined to be 6.90%. Running the DCF analysis, JetBlue is currently valued at $2.7bn. Distributing equity value over the shares outstanding gives a share price of $66.51. This proposed price of the IPO is highly overpriced, considering that the underwriters have priced it within a range of $22-$24.

Analysts estimate that the $80 million in cost saving could be realized after the acquisition , however certain other costs associated with the integration approximately $130 million would occur .Hence, I take these cost savings and integration costs into consideration for the with-synergies valuation. Incorporating the effects of 80million cost savings for the merged firm (to be achieved by end of 2007 and assumed to incur in perpetuity then on) and 130 million integration costs (half of this accounted at the beginning years) in the estimated EBITs for Torrington, a new horizon value is estimated, the new FCF is discounted by acquiring company’s WACC 8.39%. Torrington company’s with- synergies valuation $1386.38 million exceeds the value as a stand-alone entity by approximately $286 million. sheet2: With-synergies Valuation of Torrington-DCF Method.

In order to evaluate the prospective IRRs from the Boeing 7E7, we first try to estimate an appropriate required rate of return for accepting this project. The capital asset pricing model is applied to estimate the cost of equity of the commercial aircraft division:

Oil threads can be educational, but they also can be full of misinformation. One thing they are always full of is opinions. I want to state that I do not own a four stroke ski and never have. I do however have a large amount of experience in high performance motorcycle and automobile applications. Let me state something for the record that many people struggle with. Synthetic oil is no "slicker" than mineral based. Full syn oil is simply missing the waxes and impurities of mineral based oils. It is perfectly fine for wet clutch applications and Rotax superchargers as long as there are no friction modifiers added such as moly. If in doubt, you can look for the JASO rating for clutch use. Almost all 20 and 30 weight oils are "energy conserving" and have friction modifiers added. These are usually automobile oils. Most 40 or higher weight oils do not contain moly. I am aware that BRP has stated in the past not to use full syn oils with SC applications. I honestly think that they were trying to CYA with the pre 08 clutch failures. I do not know what the owners manual currently states to use in the 4tec motors in regards to type, but I believe the weight is 10W-40.

After carefully analyzing the data given, we believe that FVC’s value is roughly $270 millions, including synergies. The company’s stand-alone equity value is more than $158 millions. The synergies that derive from this acquisition are extremely beneficial to both FVC and RSE. RSE’s purchasing power would help to reduce material costs for FVC. The acquisition would also bring in estimated tax savings of $2 millions the first year and $4 millions thereafter. RSE’s new project, CORE, is expected to improve and save in-process costs for FVC, making it more efficient and helping to increase the company’s bottom line. Moreover, FVC could utilize RSE’s marketing power and strategies to advertise their new advanced hydraulic-controls system or “widening gyre”. Flinder believed that the

The previous 959.6m Amoco shares will convert into 633.336m shares of BP ADS equivalent, with the previous 965.6m ADS shares, BP shareholders will take part 60% of the new company, still have majority control over the firm. In this deal, we paid for about 20% premium, which is quite standard and normal. Because synergies from revenue and chemical divisions’ combination are not estimated nor not expected to bring benefit, the main synergy from the merge is 2 billion dollars saving of pretax operating cost. The value we create for our shareholders is $14,840.06 million (Amoco stand-alone value $46,430 million+ synergy $2 billion – price paid for Amoco $33,538.94). But this number is quite sensitive to a lot of factors, such as future energy demand, oil and gas price, industry growth potentials, ultimately affecting Amoco’s stand-alone and synergy valuation. Please

If the market value of a stock is lower than its intrinsic value, this stock is defined as “trades at a discount”. To figure out whether AGI stock is traded at a discount to comparable companies, as its management believed, we can simply apply multiple which comes from the average multiple of its comparable companies. Considering fluctuation of future after-tax earnings caused by the change in capital structure, we prefer to use TEV/EBITDA multiple in this case. Amtelecom Group consists of two lines of business which has to been taken into consideration. We separately calculate the value of both companies and their

The recommended course of action in determining an optimal price, at which JetBlue should price their IPO, is a function of a variety of factors: price multiples of industry peers, prior IPO performances with respect to the airline industry, operating performance history, growth prospects, alongside long term profitability. Given the aforementioned factors, to consider an optimal pricing of JetBlue’s IPO, the greatest arsenal in a financier’s tool set in evaluating a corporation’s projected IPO pricing would be the using EEBITDA Multiple. This ratio is a computation that is derived from the basis of understanding and analyzing, in this case, Jet Blue from four primary facets: economic and industry trends, company background, financial statement analysis and market valuation (Kelly, 2009).