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Valuations
Question 1- Valuation - Valuation Using Comparable information- Valuation is a process of estimating worth of an asset. However, when valuing a company or organization there is no "one" correct way to accomplish the task. Each organization may have a different way of reporting historical information, and event financial statements prepared with GAAP show assets based on a more historical, rather than current, paradigm. Generally speaking, though, the valuation of financial assets is done using one of more of three models:
Absolute values -- These models focus on the present value of an asset's expected future cash flows -- using multiperiod models like discounted cash flow or single-period models like the Gordon model. Absolute values take into account objective issues and are quantitatively based, but are valuable as only a partial picture into the actual value of the asset and may not be transferable from one industry to the other.
Relative models -- are more subjective and use market and competitive valuation techniques to look at similarities and differences within the specific industry.
Option Pricing models -- Option models are typically used for certain types of financial assets or investments with embedded options, bonds and such). The intrinsic value of certain assets, for instance, may be subjective and personal, and there may be other factors involved (Fernandez 2002).
Valuation remains volatile sometimes,...
being ready to launch a new product or service) and other external factors. Even brainpower an innovation should be included in valuation, particularly with certain types of technological organizations (Edvisson, et al. 1997). Financial statement analysis usually involves ratio (liquidity, turnover, profitability, trends, and industry), but there are more approaches using income, asset and markets that take other factors into consideration when looking at a more holistic view of the organization in question (Prat, et al., 2000).
Question 2 -- Cash is King? The situation revolves around a company that is at least 24-months shy of launching a new product that will revolutionize its industry. The company has a very minimal positive cash flow, but needs an influx of cash in order to stay the course. Within 6 months this organization will be out of cash if something is not done. In essence, this is the type of scenario that many new businesses face. There are no sure-fire ways to find capital, but there are several guidelines and plans that can be put into place immediately, prior to running out of funds.
First, one can hope that the organization has a good relationship with the bank and can present a plan that will show the loan officer that a medium term loan is needed in order to complete the new project. In this case, it would be more desirous to…
REFERENCES
A Basic Guide to Bank-Term Loans. (2012). Entrepreneur. Retrieved from: http://www.entrepreneur.com/article/52728
Chemmanur, T., et al. (2011). How Does Venture Capital Financing Improve Effeciency? Review of Financial Studies. 24 (12): 4037-90.
Edvisson, L., et al. (1997). Intellectual Capital: Realizing Your Company's True Value by Finding Its Hidden Brainpower. New York: Harper Collins.
Fernandez, P. (2002). Valuation Methods and Shareholder Value Creation. London, UK: Elsevier Publications.
Valuation Report Identification of Subject Property The subject site is an office property in Oakville, Ontario. It can be sold either in parts or as whole, and this report will consider the whole. The size of the whole building is 4016 square feet. The property is located on the service road adjacent to the Queen Elizabeth Way (QEW), a major highway in the region that links Toronto with the cities of Hamilton
Valuation of AirThread Connection Fundamental objective of this report is to present valuation of AirThread Connection. "American Cable Communication (ACC) was one the largest cable operators in the United States"(Stafford & Heilprin 2011P 36). In December, 2007, ACC cable systems reached approximately 48.5 millions homes with approximately 24.1 millions video subscribers. The company also enjoyed patronage of 4.6 million landline telephone subscribers and 13.2 millions high speed internet subscribers. The company
When productivity decreases, because of higher input costs or a natural disaster that inhibits the production process (for example), aggregate supply will decrease, prices will increase because of scarcity, and demand will decrease. Question 7: Productivity is an important factor in increasing aggregate supply. What are some current trends that might lead to increased productivity? Have you experienced any technological change in your job that greatly affected your productivity? Improved technology, operating procedures, and even better management techniques, can make
S. military in regards to being drafted and sent to Iraq despite having strong personal objections to the war. But then again, Socrates clearly believed that just behavior, in this case refusing to be drafted and deployed to Iraq, is better for human beings than injustice and that morality is justified because it creates happiness and well-being for the individual. Also, Socrates firmly held the belief that justice will inevitably lead an individual to choose good over evil,
1 Theodore Roosevelt, elected as President of the United States in 1901 and 1904, was one of the most ambiguous characters in American history. His political beliefs and attitudes, both progressive and conservative, influenced and shaped many domestic and international events which took place in the early 1890's and into the opening years of the twentieth century. In the years prior to Roosevelt's presidency, two of the greatest social/political problems facing America
1 A COMPARISON BETWEEN THE FLOOD MYTHS IN THE EPIC OF GILGAMESH AND THE BOOK OF GENESIS The Biblical story of the Flood as found in the Book of Genesis contains many similarities to the Mesopotamian myth known as the Epic of Gilgamesh; in fact, it appears that the Biblical account as related by Noah, ca. 1400-1200 B.C.E., may have been entirely derived from the Epic of Gilgamesh, written some six hundred years earlier