What the pv of 51b one year hence is the 51b estimated

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Unformatted text preview: timated value of offer is then $ +$4.3B = $ , Estimated which is still at the high end of peer firm valuations. If Berkshire is paying at the high end, why the positive If market reaction? Questions 4 and 5: Buffett’s record Questions Extremely Impressive: Extremely o Return on Berkshire Hathaway’s stock (1965-2004) – Return Exhibit 1 Exhibit o Nature of business and investments – Exhibits 2 and 3 Questions 4 and 5: Buffett’s record Questions Other possible performance measures Other o Exhibit 3 gives a combined market value of $24.681B from a ‘composite’ Exhibit investment of 3.832B 12.5 years (note 2) investment Overall, record compares favourably with the long-term return for all Overall, large stocks of 10.5 large Free cash flow to the firm = EBIT(1-TC) )––Change in CAPEX and New Free cash flow to the firm = EBIT(1-TC Change in CAPEX and New Working capital +Depreciation Working capital +Depreciation Questions 4 and 5: Buffett’s record Questions Return on investment in MidAmerican Energy Rough Illustration of IRR Analysis for Berkshire Hathaway’s Investment in MidAmerican (in millions of dollars, except per­share figures) 2000 Op Revenue Costs of sales and op expenses Dep EBIT EBIT(1-T) Change in CAPEX and WC Free cash flow Berkshire's ownership(80.5%) Cash outflow -1240 T...
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This document was uploaded on 01/15/2014.

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