JetBlue Airlines, a low-fare commercial airline, has planned to go public towards the end of 2001. During the process the firm had restructured their initial price from $22- 24 per share to $26 – 28 per share. Advantages / Disadvantages of the IPO Decision There are considerable advantages with obtaining equity through the IPO process. There are, however, some drawbacks that also need to be taken into consideration. Some of the advantages and disadvantages are: Advantages | Disadvantages
1. Introduction An initial public offering (IPO) is defined as the first offering of shares by a private company to the public. A share is one of a finite number of equal portions of the capital of a company that entitles the shareholder to a proportion of distributed, non-reinvested profits known as dividends, and to a portion of the value of the company in case of liquidation. Shares can be either voting or non-voting, meaning that the shareholder may have the right to vote on the board of directors
APRIL 2010 ST R I C T L Y P R I VAT E AN D C O N F I DEN T I AL INTRODUCTION TO VALUATION Presented by Tristan Fitzgerald Overview of the session Introduction Discounted cash flow (“DCF”) Trading multiples I N T R O DU C T I O N T O VAL U AT I O N Transaction multiples 1 What does the term “value” mean?1 The Oxford Dictionary definition “the material or monetary worth of a thing; the amount at which it may be estimated in terms of some medium of exchange
An empirical study of the discounted cash flow model Martin Edsinger1, Christian Stenberg2 June 2008 Master’s thesis in Accounting and Financial Management Stockholm School of Economics Abstract The purpose of this thesis is to compare the practical use of the DCF model with the theoretical recommendations. The empirical study is based on eight different DCF models performed by American, European and Nordic investment banks on the Swedish retail company Hennes & Mauritz (H&M). These models
Critically evaluate the importance of research 10 References 11 Executive Summary The decision making of management is very crucial and involves various analysis to be performed. There are various ratios and methods that can be useful for mitigating the risks and increasing the expected returns with investments. The financial forecast is a mix of the behaviour,
Ford Motors and Tata Motors for the next five years? 2.1.2 - Significance of the Problem Company Valuation is carried out to protect the interest of the investors and also 16 to give the big picture view to the Internal Stake Holders such that they can align their strategies towards the positive direction. The case study of Ford Motors and Tata Motors is expected to bring to table the detailed valuation techniques and also the causes of downfall of Ford Motors and learning from the
CROSS-BORDER VALUATION ISSUES. Ninfa Borth Altadonna Jeff Fosler Susan Hua Shawn Kennedy Brian Limurti Alex Santibanez Valuation and Corporate Combinations Finance 668.25 Sat., Dec. 4, 2010 Contents I. Executive Summary 3 II. Summary of Key Terms & Concepts 3 III. Discuss various Valuation Implications and Applicability to MNC’s & global capital markets 13 IV. Discuss DCF Methods (Multiple analyses
Mergers & Acquisitions: The Case of Microsoft and Nokia Luís Franco Hilário Advisor: Peter Tsvetkov Dissertation submitted in partial fulfillment of requirements for the degrees of MSc in Business Administration, at the Universidade Católica Portuguesa SEPTEMBER 2011 1 Abstract Due to the financial downturn and the emergence of new devices in the global handset market has led companies to change their business strategies. Indeed, Mergers and Acquisition are considered one of the
The firm and the financialmarkets (A) Firm issues securities to raise cash (the financing decision). (B) Firm invests in assets (capitalbudgeting). (C) Firm’s operations generate cash flow. (D) Cash is paid to government astaxes. (E) Retained cash flows are reinvested in firm. (F) Cash is paid out to investors in the form of interest and dividends. 9 Forms of business organisation Sole proprietorship An unincorporated
Discount Model The dividend discount model (DDM) is a method for valuing the price of a stock by using past historical data to predict future dividends and then discounting them back to present value. It can be deduced that if the value obtained from the DDM is higher than what the shares are currently trading at, then the stock is undervalued. In other words, the value of a stock is equal to the future value of all the dividends, discounted by an appropriate risk-adjusted rate. This is because no