# Tag Archives: Corporate Finance

## Finance Training Course: WACC, Beta, Cost of Capital posts review

Weighted Average Cost of Capital (WACC) is an important input in the process used for determining the value of a firm. In our Corporate Finance First Course we visit this concept as well as the concept of Beta which is an essential ingredient in the Cost of Equity calculation part of the WACC equation.

## Corporate Finance. Calculating weighted average cost of capital-WACC. Relevering Beta

Relevering Beta When assessing the value of a company’s operations free cash flows need to be discounted using the weighted average cost of capital (WACC). WACC or weighted average cost of capital is calculated using the cost of equity and cost of debt weighting them

## Master Case: AMD: Valuation & Projections: Case Guide

Over the course of AMD’s four decades in business, silicon and software have become the steel and plastic of the worldwide digital economy. While dated in terms of numbers, results, industry structure and the state of the semi-conductor industry, the AMD case does a thorough

## Master Case: AMD: Exhibits: Valuation and Projections: Session X

Balance Sheet Summary Dec 1999 US\$ (000) (YEAR) Dec 1998 US\$ (000) (12-MOS) Dec 1996 US\$ (000) (12-MOS) Dec 1995 US\$ (000) (12-MOS) Cash 294,125 361,908 166,194 113,354 Securities 302,386 335,117 220,004 377,293 Receivables 445,187 428,220 229,837 285,892 Allowances 15,378 -12,663 -9,809 -10,159 Inventory 198,213

## Master Case: AMD: Valuation: Session IX

The most difficult part in valuing a business is the pro forma projections and the calculations of free cash flows. Most major errors in the valuation exercise are found in these two parts. Valuation aims at seeing that if a business generates a certain amount

## Master Case: AMD: Calculating cost of capital – WACC: Valuation and Projections: Session VIII

We need to know what it costs us to put our money to work, i.e. we need to find out our cost of capital. The steps to calculate the cost of capital are as follows: Calculate the cost of debt, which includes calculating the asset

## Master Case: AMD: Calculating Free Cash Flows (FCF): Valuation and Projections: Session VII

What are free cash flows? The net income a business declares and the actual cash that it generates are two separate things. Since net income is not the same as the cash generated by the business, we need to make a few adjustments to the

## AMD Finance Case Study. Valuation and projections.

Finance Case Study. AMD. Valuation The steps involved in projecting the balance sheet are similar to the steps followed in projecting the income statement. The difference in the two methods is that in the income statement, almost everything is expressed as a percentage of sales,

## Master Case: AMD: The income statement: Valuation and Projections: Session V

We’ve done five of the 9 steps. We have gathered data, done an industry analysis, performed pre-analysis, read up on the management’s views of the future, and generated some assumptions. We’re almost finished so don’t stop yet. Just a few more steps, so let’s start

## Master Case: AMD: Setting Assumptions: Valuation and Projections: Session IV

You can make assumptions in a number of ways. You can use historical data i.e. look at previous years’ averages and hope that the company maintains these and uses them. Or you can use the historical data as a base, adjusting the averages for expected

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