Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )
as volatileas capitalexpenditures, itmakesmore senseto leave depreciation untouched. Forfirms withalimitedhistory orfirmsthathav ...
Wecannormalizethenetcapitalexpendituresintwoways. Onewayistotaketheaveragenetcapitalexpenditureover the five-year period, which ...
Since capitalizing an operating expense creates an asset,theamortizationofthisassetshouldbeadded to depreciation for the curren ...
Reviewingthenumbersagain,CiscohadanR&Dexpenseof $3,320 million in the fiscal year ended July 2005. CapitalizingtheR&Dexp ...
expendituresofafirmthereforeneedtoincludeacquisitions. Sincefirms seldommakeacquisitions everyyearand each acquisition has a dif ...
from thisgrowthand ignoreacquisitionsatthesametime. Thiswillresultinanovervaluationofthefirm,sincewehave countedthebenefitsofthe ...
Company Cash/Shares Issued Acquisition Value ($millions) Airespace, Inc. 23 million shares 447 dynamicsoft, Inc. Cash 69 FineGro ...
Depreciation 1,009 = Net capital expenditures) −146 R&D expenditures 3,320 Amortization of R&D 3,280 Acquisitions ...
to maintain a large cash balance for day-to-day operations or a firm that operates in a poorly developed banking system, the cas ...
ILLUSTRATION 3.10: Working Capital versus Noncash Working Capital: Target As a large retailer, Target has substantial investment ...
2004 ($millions) 2003 ($millions) Total current assets 13,922 12,952 Accounts payable 5,779 4,956 Accrued liabilities 1,633 1,28 ...
we should tie the changes in working capital to expected changesinrevenuesorcostsofgoodssoldatthefirmover time.Thenoncashworking ...
When forecasting the noncash working capital needs for Target, we have several choices. Onemethodistousethechangeinnoncashworki ...
Thefourth isto base ourchanges on thenoncash working capital as a percent of revenues over a historical period. For instance, n ...
Thequestion,however,becomeswhetheritcanbeasourceof cashflowsforlongerthanthat.Atsomepointintime,there willbenomoreinefficiencyle ...
Canworkingcapitalitselfbenegative?Again,theansweris yes.Firmswhosecurrent liabilitiesexceed noncash current assets have negative ...
scenario,withnegativechangesinnoncashworkingcapital, thereisnoreasonwhyfirmscannotcontinuetousesupplier creditasasourceofcapital ...
dividendyield,whichisdefinedtobethedividendspershare as a percent of the market price. Figure 3.3 summarizes dividend yields for ...
While welook atdividenddiscount modelsinthe coming chaptersinmoredepth,therearethreepatternsin dividend policy that are importan ...
term.Thus,dividendscanbeviewedasaflooronthecash flow to equity. Potential Dividends While dividends areobservable and require no ...
«
75
76
77
78
79
80
81
82
83
84
»
Free download pdf