Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )
Targethasapretaxcostofdebtof5.50%.To computethe present value of the commitments, we have to make a judgmentonthelumpsumcommitme ...
ToadjusttheoperatingincomeforTarget,wefirstusethefull adjustment.Tocomputedepreciationontheleasedasset,we assume straight-line d ...
earningsin 39 ofthe 40 quartersduringthedecadeandIntel postedarecordalmostasimpressive.Othertechnologyfirms followedin theirfoot ...
instance,onApril10,1997,Intelreportedearningsof$2.10 pershare, higherthananalystestimatesof$2.06pershare, butsawitsstockpricedro ...
Techniques for Managing Earnings Howdofirmsmanageearnings?Oneaspectofgoodearnings managementisthecareandnurturingofanalystexpect ...
to large deals announced just days before each quarter ended. In a moreelaborate variant of this strategy,twotechnologyfirms,bot ...
and Lev (1999) studied 389 firms that wrote off in-process R&D between 1990 and 1996; 11 these writeoffs amounted, on averag ...
Extraordinary, Recurring, and Unusual Items The rule for estimating both operating and net income is simple. The operating incom ...
istonormalizethembyaveragingtheexpensesacrosstime and reducing this year’s income by this amount. 4.Itemsthatrecureveryyearthatc ...
As we noted earlier in the chapter, technology companies haveusedanunusualploytogetthegoodwillcreatedwhena premiumispaidoverbook ...
firmsandthechoicewefacebetweenthetwoinvaluation. Thesecond issue arises usuallywith younger firms and is causedbythelargelossest ...
effective tax rates across firms. Figure 3.1 provides a distributionofeffectivetaxratesforfirmsintheUnitedStates in January2005. ...
firm’s effective taxrate be different from its marginaltax rate? There are at least four reasons: 1.Manyfirms,atleastintheUnited ...
Whena firm hasglobal operations, its income istaxed at differentratesindifferentlocales.Whenthisoccurs,whatis themarginaltaxrate ...
thetaxratesusedtocomputetheafter-taxcashflowscannot changeovertime.Thus,invaluingafirmwithaneffective taxrateof 24 percentinthec ...
taxrates—theeffectivetaxrateforever,themarginaltaxrate forever, and an approach that combines the two rates. APPROACH 1: Effecti ...
Thisvalueisbasedontheimplicitassumptionthatthefirm cannotdefertaxesfromthispointon.Infact,anevenmore conservativereading would s ...
cumulated deferred tax liability of $200 million, we can compute the deferred tax liability by the end of the fifth year: Weassu ...
afirmwithnetoperatinglossescarriedforward,thetaxrate usedforboththecomputationofafter-taxoperatingincome and costof capitalwillb ...
periodsonthetaxrateforSirius,thesatelliteradiopioneer. Siriusreportedrevenuesof$187millionandanoperatingloss of$790millionin 200 ...
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