What is the most you should pay for Carlisle

What is the most you should pay for Carlisle - The firm’s...

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What is the most you should pay for Carlisle? * Stage 1 Cash Flows Shortcut * Value Stage 2 Cash Flows  (1 of 2) * Value Stage 2 Excess Earnings  (2 of 2) * Calculate the Value of the Stock * Two Stage Valuation:  Only Stage 1 Review * Two Stage Valuation:  Only Stage 2 Review * Negotiation Tip: First Offer Question: Should I make the first offer? Final agreements are more strongly influenced  by  initial offers  than by subsequent  concessionary behavior. * Negotiation Tip: First Offer In general, do your research and make an  aggressive first offer. * Goals      predict  first offers  which predict  outcomes .
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2) Make your first offer as extreme as you  can possibly rationalize or explain based  on your BATNA and goals. 3) Talk about your offer as long as possible  (anchoring). * Accept A First Offer? * Mind Map Why?:
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Unformatted text preview: The firm’s current balance sheet is the result of past capital budgeting decisions. Perhaps the most important decision managers make is determination of which capital projects to accept. Will they ENHANCE or DESTROY company value? In this chapter, we analyze the methods used for making these important capital budgeting decisions . * Mind Map Learning Objectives: * Articulate the desired attributes of a capital budgeting methodology * Determine whether a project is acceptable based on Payback, NPV, and IRR * Discuss the weaknesses of payback and IRR so that NPV is the preferred evaluation technique * Mind Map Key Words/Concepts: * Payback Period * Net Present Value * Internal Rate of Return * Cash Flow Patterns...
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This note was uploaded on 11/23/2011 for the course BUS M 301 taught by Professor Jimbrau during the Summer '11 term at BYU.

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What is the most you should pay for Carlisle - The firm’s...

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