Paginas Amarelas Case Study

In today’s global marketplace, doing business abroad has become as common as getting dressed each day. Technology has bridged the gap for entrepreneurs and corporate visionaries to expand into global markets with ease. Extensive risk analysis and market research must be communicated effectively to enable strategic financial steps that maximize shareholder equity and minimize company risk and exposure to be exercised. This paper will identify and discuss various factors that will impact global finance over the next 10 years

Arcadian’s management has used a very optimistic cash flow for their future sales through 2015, but Chu had a much more pessimistic view on their upcoming cash flows. For our solutions, we decided to look at the return that Sierra would receive on Arcadian using 3 different purchase prices. Instead of using the optimistic 7% rate that Arcadian had forecasted, we cut the growth rate back to 4% to allow for inflation and growth in a more conservative manner. Are three alternative solution are:

11. What are the amounts and timing of the acquisition investment’s free cash flow from 2013 through 2022? You will need to find an appropriate growth rate and extend Exhibit 6 out through 2022.

Suppose Ace, over the last few years, has had an 18 percent average return on equity (ROE) and has paid out 20 percent of its net income as dividends. Under what conditions could this information be used to help estimate the firm’s expected future growth rate, g? Estimate ks using this procedure for determining g.

2. What precautions must we take when measuring the WACC to use for capital budgeting decisions (future investment)?

magnitude of these risks, this paper advocates for a more proactive solution. Active investing in

Cernauskas, D., & Tarantino, A. (2011). Essentials of Risk Management in Finance. Hoboken: John Wiley & Sons, Inc.

X- C. The composition of the optimal international portfolio is identical for all investors of a particular country, whether or not they hedge their risk with currency futures

The following paper is a depiction of the current economic concern of the real gross domestic product of the Federal Republic of Brazil. Included as well are data sets which display the statistics and recorded data of the real gross domestic products for the years 2000 through 2010. These data sets provide an analysis for the afore mentioned time frame in order to accurately determine trends over a set period of ten years. Moreover, the data and statistical evidence represented will provide additional support for individual assertions based upon the trends in relation to Brazil’s real gross domestic product. The GDP within this nation directly affects the country’s economy as

In order to find the WACC, we need to find the cost of the components of the capital structure and their proportion in the total capital.

1. In the last five years the growth in sales for the company has been around 10% per annum, except for the 1997, the growth was 18.78%. In the case, nothing is mentioned that company has made any drastic changes in its strategy to grow faster. In such a scenario, projected a consistent growth of 20% per annum for the next 5 years is too optimistic.

Cash flows were projected based on the Financial Plan covering a three year period. Cash flows to determine a terminal value were extrapolated using a constant growth rate of 2.5 per cent per annum, which does not exceed the long-term average growth rate for the

A risk analysis is a compilation of detailed factors weaved together to determine the likelihood of success or failure for a project, goal, or investment. Businesses use these to determine the viability or feasibility of a new product, initiative, or opening into a new market segment. A country risk analysis is simply the extension of a risk analysis to include an entire country. In essence, a country risk analysis is a tool used to identify the risks associated with opening a business, creating trade agreements, or investing in a country. A country risk analysis is very important because it takes into account many factors including the current and past political climate, economic risk, geography and climate risks, cultures, and laws pertaining to the country being analyzed. Often, countries are given a grade to enable a quick comparison to how risky investing in one country is compared to another country.

When investing internationally there are risks beyond the risk of individual securities or portfolios. There is liquidity risk, because it is often

This project evaluates the discounted Net Present Value which shows the estimated cash flow. The cash flow forecast is for 10 year which incorporates International complexities as well as the cost of capital.