Principles of Private Firm Valuation phần 10 ppsx

... up an interesting problem. Consider again the example of Firm A, a private firm, acquiring Firm B, a public firm. When Firm B is part of Firm A, however, it is no longer a public company and ... community. Hence, this research offers an important source of knowledge about the impact of li- quidity, or lack thereof, on the prices of minority shares of quasi -private fi...

Ngày tải lên: 14/08/2014, 05:20

... a private C firm commands a discount of 20 percent, the liquidity discount for an equivalent S corpora- tion would likely be in the neighborhood of 25 percent. 104 PRINCIPLES OF PRIVATE FIRM VALUATION 12249_Feldman_4p_c06.r.qxd ... problem with using this mea- 106 PRINCIPLES OF PRIVATE FIRM VALUATION 12249_Feldman_4p_c07.r.qxd 2/9/05 9:48 AM Page 106 112 PRINC...

Ngày tải lên: 14/08/2014, 05:20

... of return, stock j at time t B ˆ j = estimated beta, firm j R mt = rate of return, market index â j = constant term from regression model used to estimate beta 94 PRINCIPLES OF PRIVATE FIRM VALUATION 12249_Feldman_4p_c06.r.qxd ... and N. S. Majluf supports the view that the private placement market offers an opportunity for firms to signal that their 98 PRINCIPLES OF PR...

Ngày tải lên: 14/08/2014, 09:21

... up an interesting problem. Consider again the example of Firm A, a private firm, acquiring Firm B, a public firm. When Firm B is part of Firm A, however, it is no longer a public company and ... reduction in Firm B’s operating expenses. If Firm B’s cost of capital were 10 percent, then Firm A would be willing to pay $1,000 for Firm B. This $1,000 would be the sum...

Ngày tải lên: 14/08/2014, 09:21

... a private firm s cost of capital. The purpose of valuing private firms varies. Although a valuation is generally required prior to a private firm being transacted, the majority of private firm ... & Sons, Inc. Principles of Private Firm Valuation STANLEY J. FELDMAN 12249_Feldman_4p_ffirst.r.qxd 2/9/05 9:49 AM Page iii John Wiley & Sons, Inc. Principles...

Ngày tải lên: 14/08/2014, 05:20

... helpful. Suppose Firms A and B have after-tax earnings of $100 in perpetuity and each has a cost of capital of 10 percent. The value of each firm is therefore $1,000 ( $100 ÷ 0 .10) . The two firms combined ... the value of these additional activities is 14 PRINCIPLES OF PRIVATE FIRM VALUATION 12249_Feldman_4p_c02.r.qxd 2/9/05 9:46 AM Page 14 9 Creating and Measuring t...

Ngày tải lên: 14/08/2014, 05:20

... value of parent prior to the spin-off is $100 , and the value of the spun division is $10, then the post-spin-off value of the parent is $ 110. Equity Carve-Outs An equity carve-out is the sale of ... of private firms are small, and issues of trans- parency typically abound, the larger a private firm is the greater the degree of transparency that is required. The reason i...

Ngày tải lên: 14/08/2014, 05:20

... multiple is 10. Firm B is a private firm that is comparable to Firm A. If Firm B is currently earning $1 per share, then the value of Firm B’s equity, if it were publicly traded, would be $10, or ... obtain the value of the firm. ■ The method of multiples. This method first identifies a set of firms that are comparable to the firm being valued. For each comparable fi...

Ngày tải lên: 14/08/2014, 05:20

... 1.156716 9 1.02290076 9 1.1832061 10a 1.4300 10a 1. 7100 10a $120,121,611.60 10a 1.195804 10a 1.09160305 10 1.3053435 10b 1. 4100 10b 1. 7100 10b $41,913,488.23 10b 1.212766 10b 1.07633588 11 1.3053435 11 ... market value of each component of the firm s capital structure divided by the total market value of the firm 12249_Feldman_4p_c05.r.qxd 2/9/05 9:47 AM Page 69 66 PRINCIPLES...

Ngày tải lên: 14/08/2014, 05:20

... of return, stock j at time t B ˆ j = estimated beta, firm j R mt = rate of return, market index â j = constant term from regression model used to estimate beta 94 PRINCIPLES OF PRIVATE FIRM VALUATION 12249_Feldman_4p_c06.r.qxd ... percent translates into a discount of 12.3 percent. This means that the pure liquid- 96 PRINCIPLES OF PRIVATE FIRM VALUATION TABLE 6.1 S...

Ngày tải lên: 14/08/2014, 05:20