Chapter 11 part 1 notes

Chapter 11 part 1 notes - CHAPTER11 CorporateValuationand

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
1 CHAPTER 11 Corporate Valuation and  Value-Based Management
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Topics in Chapter Corporate Valuation Value-Based Management Corporate Governance
Background image of page 2
3 Corporate Valuation: A company  owns two types of assets. Assets-in-place Financial, or _______________, assets  
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Assets-in-Place Assets-in-place are tangible, such as  buildings, machines, inventory. Usually they are expected to _____. They generate free cash flows. The PV of their expected future free  cash flows, discounted at the ______, is  the value of __________.
Background image of page 4
5 Value of Operations V op  =  Σ t = 1 FCF t (1 + WACC) t
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Nonoperating Assets Marketable securities Ownership of _____________ interest  in another company Value of nonoperating assets usually is  very close to figure that is reported on  balance sheets.
Background image of page 6
7 Total Corporate Value Total corporate value is sum of: Value of operations Value of nonoperating assets
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8 Claims on Corporate Value Debtholders have ____ claim. Preferred stockholders have the next  claim. Any remaining value belongs to  stockholders.
Background image of page 8
9 Applying the Corporate  Valuation Model Forecast the financial statements, as  shown in Chapter 9. Calculate the projected free cash flows.
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/12/2010 for the course FINC 3630 taught by Professor Jensen,m during the Spring '08 term at Auburn University.

Page1 / 25

Chapter 11 part 1 notes - CHAPTER11 CorporateValuationand

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online