Financial statement analysis
Analyzing the financial data of a company can provide a lot of important insight into
the companys operations. Historical data can highlight the growth of the company
and also help predict the future earnings and sale
1) Using the Unweighted Average Method calculate the Unweighted Average of the
expected future benefit stream for each of the firms:
Company # 1
Company # 2
Dorman Products, Inc.
Guideline Publicly Traded Company Method
Market Value of Invested Capital - Total Enterprise Value
DREW INDUSTRIES INC
LTM Total LTM As of
Asset (Asset-Based) Approach Way of determining the value of a business (The businesses
fair-market value.) based on the value of assets, less liabilities.
Beta The volatility or risk of a security or portfolio when compared to the market as a whole.
Valuation of Dorman Products, Inc.
For the Purpose of Considering Friendly Tender Offer
As of October 31, 2015
Board of Directors
Doorman Products, Inc.
3400 East Walnut Street
Colmar, PA 18915
December 10, 2015
Problems and Questions
1. Assume that you are valuing an Indonesian firm in US dollars. What would you use
as the riskless rate?
2. Explain why a 6-month treasury bill rate is not an appropriate riskless rate in
discounting a five-year cash flow.
3. You h
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Uses of Valuation Reports
There are many uses for business valuation reports, and these reasons typically fall into
four categories. Those categories are: transactions, litigation, compliance, and personal
reasons. Below I will provide a list of some of t
Controlling the Cost Drivers
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