Over the past few years, middle income segment in Indonesia is growing rapidly and has a direct impact to Indonesian economy. According to Euromonitor middle income segment is around 52.4% of the total population in 2010 which is predicted to get wider considering the salary increase every year. One industry that impacted directly by the increase of middle income segment is fashion retail segment, in specific department store. The fashion retail in Indonesia is dominated by department stores, which is around 98% by sales. PT. Matahari Department Store Tbk is one of the biggest retailer of attire, cosmetic, accessories, and homeware which is supplied by local and international high quality suppliers. The first outlet of Matahari is a kid’s cloth store, opened in 24 October 1958 in Pasar Baru Jakarta. Later on in 1972, Matahari opened its first department store. Today, Matahari has own …show more content…
Meadow Indonesia acquired 98% of PT. Matahari Department Store shares and on September 2011 PT. Meadow Indonesia mergered with PT. Matahari Department Store. This action result in negative number of equity of PT. Matahari Department Store. The reason of negative equity that PT. Matahari Department Store has is because the merger transaction with PT. Meadow Indonesia. Based on appraiser opinion (KJPP) the fair market value equity of PT. Matahari Department Store is Rp 7.812.802.938.165 or equal to Rp 2.678, on the other hand the fair market value of PT. Meadow Indonesia equity is Rp 8.017.337.523.435 or equal to Rp 19.167.394. We can see that the fair market value equity of PT. Meadow Indonesia is higher than fair market value equity of PT. Matahari Department Store. Theoretically, the shares of PT. Meadow Indonesia are conversed to 7.158.620 of PT. Matahari Department Store shares. But PT. Meadow Indonesia propose to use conversion rate of 6,846,948, so that there will be no dilution for PT. Matahari Department Store share holder or new equity
Pure Land Buddhism offers a way to enlightenment for people who can’t handle the subtleties of meditation, endure long rituals, or just live especially good lives. The essential practice in Pure Land Buddhism is the chanting of the name Amitabha Buddha with total concentration, trusting that one will reborn in Pure Land, where it is much easier for a being to work towards enlightenment. Pure Land Buddhism is particularly popular in China and Japan.
Even though Zen and Pure Land Buddhism are usually considered to be quite different, they are actually part of the same type of Buddhism, Mahayana, and thus have an underlying similarity. This essay will argue that, in particular, the Mahayana concepts of non-duality and no-self are present in both schools, and that the ways employed in each school to reach their respective goals can be analyzed in a similar fashion, proving that these two schools are part of, rather than deviations of, Mahayana Buddhism.
We use Capital Asset Pricing Model (CAPM) approach to calculate the cost of equity. The formula of CAPM is re = rf + β × (E[RMkt] – rf).
The most obvious reason for the difference between the market value of equity and the book value of equity is the inability to record certain intangible assets such as brand value, customer loyalty, and perhaps most importantly, human capital. These intangible assets are likely to provide tremendous earnings growth in the future which determines the company’s market value. Notice also that the company’s choice of conservative accounting policies has the effect of depressing the company’s book value of equity.
4. The case indicates that the company’s “market value” of equity at June 30, 1999 was $460 billion. Compare this to the company’s “book value” of equity. What factors likely explain the difference between these two values?
Several internal factors can influence the valuation of a company, however, in the subsequent are some factors that will assist management in protecting its shareholders. The first reason is the desire to generate profits for the company, as a profitable firm will attract investors. Secondly, the need to improve the management of a company can lead to valuation as the information can be used to spur growth. Valuation will assist in understanding some of the factors affecting the value of the company such as client relationships, financials, image, technology employees, and marketing. Proper management is implemented after identifying the issues affecting the organization’s value. Thirdly, communicating to the public accurate and current information is essential in attracting investors and maintaining transparency, which builds the company image.
It is important to know the proper technique and method of valuing a company because different people may have different ways of assessing the value; it is also important in understanding the bank’s method of appraising and valuing a company or business
Morris Mining Corporation owns and operates mining facilities that are located in the United States, and Canada. This company primarily distributes extracted ores and minerals to their customers. Recently, in January 2015, Morris Mining acquired the mining company King Co. Once the company has been acquired, Mining Morris plans to record the difference of the purchase price and identifiable net assets as goodwill. The identifiable assets and liabilities of King Co. are going to be recorded at fair value on Morris Mining 's books. There has been discussion as to how the company is going to report the fair value for the patent that is part of the assets they acquired from King Co. Rob, an audit manager on the Morris Mining engagement, and Gabriela, the audit senior, are trying to evaluate if the method of the fair value estimate it reasonable.
Australian-Indonesian relations are the foreign relations between the two countries, whether economically, politically, legally or socially. Australian-Indonesian relations involve an interaction in foreign policies between the two nations (Wolfsohn, 1951, p. 68). As long as Indonesia is Australia 's closest and largest neighbor, they are bound to have great international relations. These relations began as early as the 17th century and had only become enhanced with time (Daly, 2003, p. 397). The relationship has been defined by a conjoint growth trade of up to $14 between the years 2011-2012 which reports an increase from the previous economic year (Mark, 2012, p.402). These countries are members of various trade deals such as the ASEAN Regional Forum in addition to having close ties with education, defense, and leadership. Australia 's relationship with Indonesia is crucial, and lack of such could severely bruise the economy, and hence they need to keep united by ensuring the use of widespread media with beneficial input. Australia interacts with Indonesia in a way such as sporting activity, tourism, education, economic policies, youth exchange programs, cultures and above all their diplomacy (Okamoto, 2010, p.241).
Cost of Equity is the return that stockholders require for a company. A company’s cost of equity represents the compensation that the market demands in exchange for owning the assets and bearing the risk of ownership. Based on capital markets the cost of equity varies in direct relation to the assumed risk in that specific market. The distinctive of the firm is the sensitivity to market risk (β) which depends on everything from management to its business and capital structure. Therefore past performances and present conditions have a direct effect on the overall value. Applying calculations at a divisional level allows specified markets to be analysis based on present market conditions for that service or product. The formula used to calculate Cost of Equity is:
As Star River is a private company and has not issued stock, we need to make several assumptions when calculating market value of equity and price of equity. Analysis of similar companies reveals that Wintronics, Inc. and STOR-Max Corp. are the most similar firms in the market. To calculate Star River’s market value of equity I used market to book value method. I found M/B for Wintronics to be 4.4 (market price per share/book value per share) and 3.9 for STOR-Max. an average M/B ratio is 4.15, so multiplying Star River’s book value of equity of 47004 by 4.15 I found Star River’s market value of equity to be SGD195,066.6M. Average beta of these two companies is 1.615. The global equity market premium is 6%, and I use 10 year Singapore T-bond yield of 3.6% as my risk free rate.
that of a river. If you've seen a river you'd have seen that "the water continually flowed
Many people wonder if heaven exists, and if so, what it consists of. There are many theories that will tell you different stories of heaven. In the bible heaven it is named Eden, where man can walk and talk at the side of God. Heaven is an intangible place where only the true ideals of life can be realized. On earth there is no way to know the true meaning of life. People can never fully comprehend the reason behind existence. The human world is full of many outside sources, such as evil, corrupting many lives. There will never be peace on earth due to that corruption. Many people are envious of other lives and are bound by senseless ideals. They spend much of their life with the want for
How might the Singapore society differ were it not for these technologies – would the society be more or less heavily regulated? Lee recommends analysing politics and society by addressing how power struggles and relations were played out in the pre-Internet era, namely the maintenance of political control via public support (2005: 74). Foucault defines ‘governmentality’ as the point of contact where the technologies of power interact with the governed. This spurs Lee to postulate that, in order to retain power in the Internet era, 'governments need to be actively involved in shaping the design as well as the societal, cultural and regulatory environment in which the Internet and other new media technologies operate' (2005: 75).
As our ultimate goal is to make a decision about whether it is worthwhile for us to make an investment on SHXS’s equity, we need to estimate the fair value of SHXS’s equity first by adopting our estimation of this company’s required rate of return (‘E(r)’), which is 38.7%, and then compare our result with SHXS’s IPO offer for ‘H’ shares, which is HKD1.46 per share.