Valuation and Capital Budgeting Part I Capital Budgeting M. Lambert Valuation and Capital Budgeting Part I, HEC-ULg 2013-2014 – Marie Lambert 1 Real investments • Real investments are expenditures that generate cash in the future and, as opposed to financial investments, like stocks and bonds, are not financial instruments that trade in the financial markets • Corporations create value for their shareholders by making good real investment decisions Valuation and Capital Budgeting Part I
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Case Study admin | April 3, 2013 Case Study Acting as the CEO of New Heritage Doll company and need to decide which investment projects can create values for shareholders’ wealth so that the company can receive funding in the next five years. Student’s task is to evaluate proposed projects using the financial and qualitative information provided and to select projects to be approved for a given year’s investment plan using any evaluation criteria deem appropriate. Students are to submit the simulation
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WEBSTER UNIVERSITY • WESTPORT, ST LOUIS, MO • GEORGE HERBERT WALKER SCHOOL OF BUSINESS & T ECHNOLOGY • BUSINESS DEPARTMENT BASIC FINANCE FOR MANAGERS BUSN5200 SU 2015 Section 07 3 Credits 06/01/2015 to 07/31/2015 Modified 05/20/2015 MEETING TIMES Thursday, 5:30 PM to 9:30 PM, Westport Campus CONTACT INFORMATION Mike Boland Email: michaelboland57@webster.edu (mailto:michaelboland57@webster.edu) Phone: 6362363636 DESCRIPTION Managers and human resources management
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Project Tobey Overview • Case Summary • Problem Statement • ROFE & Capital Budgeting • Incredible Incremental • Analysis Options • Cash Flows • Recommendations Case Summary • General Foods is a large corporation organized by Product Lines. • Super is a proposed new instant desert, based on a “flavored, water-soluble, agglomerated powder.” • General Foods has numerous projects with strict criteria to judge worthiness. • There are basically three types of Capital Investment proposals at General
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What is budget and budgeting? Budget is a financial plan, which is tailored individually for each entity covering specific future period of time and which enables to determine manager’s targets and to predict the consequence of that specific financial period (Langfield-Smith, et al., 2006). Budgeting has been recognized as one of the most significant concepts used for planning and controlling organizations performance since the early 20th century. As a process, budgeting comprises of a set
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AES Case study approach Cost of Capital for Lal Pir Project Levered Beta Cost of Equity Calculation Cost of Debt Calculation Weighted Average Cost of Capital Calculation Discount Rate Calculation Calculating the Range of Discount Rates for AES Cost of Equity Calculation Cost of Debt Calculation Weighted Average Cost of Capital Calculation Discount Rate Calculation If the project was in USA, PV of Cash Flows Project Value* Abstract: AES has been using a single discount
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(Merit M1). 5 Case study 1: An engineering firm 5 Equity financing for this firm 5 Debt financing 5 Lease financing 5 Case study 2: Individual financing 5 Equity financing for this firm 5 Debt financing 6 Lease financing 6 Case study 3: Large plc. 6 Equity financing for this firm 6 Debt financing 6 Lease financing 6 Case study 4: Local Do It yourself firm 6 Equity financing for this firm 6 Debt financing for this firm 6 Lease financing 6 Case study 5: Rugby club 6
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Capital Budgeting Case Shawn P. Oeser QRB/501 October 7, 2013 David Gobeli Capital Budgeting Case For the final week of QRB/501 we were asked to complete a Capital Budgeting Case based on two possible corporations for our company. Based on the 5 year projected income statement, 5 year projected cash flow, Net Present Value (NPV), and Internal Rate of Return (IRR); we were to determine which company would be the wiser acquisition. After completing the analysis it was determined that Corporation
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PROCESS IN A MANUFACTURING: CASE OF GUINNESS NIGERIAN PLC. BY: AMALOKWU OBIAJULUM JOHN LAWRENCE NJILEFACK NGOASONG ABSTRACT Date Level Authors : : : June, 2008. Master Thesis EF0705, 10 points (15credits) Amalokwu Obiajulum John (820821) Lawrence Njilefack Ngoasong (770901) Title : Budgetary and Management control Process in a Manufacturing Organization. Roland Almqvist. What is the budgeting practice in the Nigerian Manufacturing companies? The aim of this study is to investigate the management
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Introduction Capital Budgeting is a process that allows businesses to assess whether their investment decisions like purchasing a new plant, constructing a new building, or engaging in a new venture is profitable enough to pursue. (Investopedia. 2015) When making crucial investment decisions, capital budgeting gives businesses a more informed way of deciding. This is because investment decisions are weighed in terms of the cash flows over the duration of the new venture or investment. This way, a
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