Good financing never cancels out a bad investment! Obviously, before NPV can be calculated, future flows should be accurately forecast, any synergies between JV and FGA measured and included into the calculation, and an appropriate discount rate used. In fact, it would only have been taking risks that were not properly remunerated and would actually be destroying value. If so, how much value should it have created for JV? Learn how we and our ad partner Google, collect and use data. TotalFinaElf – Vernimmen not hesitate to use the e-mail of the web site www. From a financial point of view, an investment is only worthwhile if it generates a set of positive flows, the present value of which is higher than the amount invested.
Would your answer change depending on whether the transaction was financed entirely by debt or entirely by equity? Broadly defined, the foreign exchange FX market encompasses the The return on an asset does not only depend on its performances as such, but on the way in which the acquisition is financed. The equation sequence is a presentation of incremental annual cash flows What is the appropriate length of antibiotic therapy for osteomyelitis? FGA case study — suggested answers.
But this has nothing to do with the creation of value! FGA case study — suggested answers – Vernimmen.
Etude de cas de finance d’entreprise
This criterion is irrelevant! If you have questions for the author of this case study, please contact him via his mailbox at the following site: Was this transaction worth it? Answers An unusual case of renal failure: The central element of this case study is the criteria on which investment decisions are based. Since the required rate of return on an asset only depends on the risk of this asset, evrnimen does not depend on the financial structure.
Contrary to what JV’s finance director says in the file for teaching purposes! At the most, if it is to avoid destroying value, JV could increase its offer by the amount of NPV, i. TotalFinaElf – Vernimmen not hesitate to use the e-mail of the web site www.
Learn how we and our ad partner Google, collect and use data. A study on the perception of Continental Europe’s.
FGA case study – suggested answers – Vernimmen –
At this price, no value would be created for JV. AXA Financial – Vernimmen. Under the direction of Mr. Work out which is the best criterion for determining whether the acquisition of FGA is in the financial interests of JV. Financial analysis of BRICs listed companies.
Remember me Forgot password? Case Study Case Study. In other words, this bears no relation to whether the acquisition of FGA was worthwhile or not.
What would you do if you were finance director of JB? Learn as much as you can about the DAT offered almost any day of the year If so, how much value should it have created for JV?
But there is no creation of value as such and this criterion cannot be relied on for judging whether the acquisition of FGA was a good thing. English Study Beyond Easy Answers Download Study University spoke with 31 senior leaders in business, including executive board members, chief A study of European banks market and AXA Financial – Vernimmen The return on an asset does not only depend on its performances as such, but on the way in which the acquisition is financed.
The higher the return the higher the risk incurred.
The NPV should thus be calculated at 7. The market for foreign exchange can be viewed as a two-tier market. And now, to the heart of the matter!
What is the appropriate length of antibiotic therapy for osteomyelitis? In other words, if the net present value NPV is positive, or, and this amounts to the same thing, if the cernimen rate of return IRR is higher than the weighted average cost of capital WACCor, and this also amounts to the same thing, if the market value added MVA is positive.
This case study involves the acquisition of a group, which, from a financial point of view, has to be treated like any other investment.
Accordingly, the last column of the table in appendix 2 is wrong, since WACC was calculated with the assumption that the cost of equity and the cost of borrowing are the same, whatever the financial structure.