Financial Adjustments: Trading, Inventory, and Goodwill Corrections
Nominal Purchase Date
Price Quote 31/12/20XX purchase acquisition costs
| Company | Date | Purchase Price | Market Value | Units | Total Value |
|---|---|---|---|---|---|
| Total | 27,790.00 | 120,022.00 | 1,050 | 122,178.00 | |
| Telefonica | 10/02/20XX | 10,000.00 | 16,000.00 | 200 | 15,300.00 |
| Santander | 15/04/20XX | 15,000.00 | 78,000.00 | 500 | 80,400.00 |
| Repsol | 20/06/20XX | 1,590.00 | 13,992.00 | 180 | 14,628.00 |
| Endesa | 13/10/20XX | 1,200.00 | 12,030.00 | 170 | 11,850.00 |
Answer: In the case of a speculative portfolio, it must be understood that these are assets held for trading. Its assessment is the acquisition price,
Read MoreBusiness Administrative Processes and Organizational Models
Administrative Process:
Administrative processes are typically divided into four basic functions:
- Planning: Establishing objectives and designing activities to achieve them.
- Organization: Setting appropriate relationships between company parts and personnel.
- Direction: Managing staff to achieve optimal performance.
- Control: Comparing results with targets set during planning.
Planning Role:
The planning role involves setting goals, creating strategies, defining company policies, and establishing decision
Read MoreVenture Capital, Leveraged Finance, and Distressed Investing
VC Method: Pre-Money and Post-Money Valuation
Pre-money value is before the addition of investor’s capital. Post-money value is pre-money value plus investor’s capital.
Post-Money Value Calculation
Fully diluted shares before investment = Sum of current shares + options + warrants outstanding
New number of fully diluted shares = Sum of current shares + options + warrants outstanding + amount invested in the round
Percent of total shares investor purchases = Total number of new shares purchased /
Read MoreInterest Rate Swaps, Options, and Market Analysis
Interest Rate Swap Valuation
A company acts as a fixed payer in a generic interest rate swap contract, with semiannual payments, which has exactly nine months to expiration. Knowing that:
- The main theorist of the contract is 100 million euros.
- The fixed rate agreed at the time was 6%.
- The EURIBOR rates at 3, 6 and 9 months are, respectively, of 2.10%, 2.17% and 2.3%.
- The 6-month interbank rate, effective three years ago, was 2.20%.
Determine the value of the swap for the company in question (use, both
Read MoreUS Economic Boom and the 1929 Stock Market Crash
The Roaring Twenties: A Period of US Economic Prosperity
The 1920s, often referred to as the Roaring Twenties, were a period of significant economic prosperity in the United States. Following World War I, the US emerged as a major global economic power, supplying capital goods and accelerating industrial production. Increased exports allowed the US to penetrate markets previously dominated by European powers, resulting in a trade surplus. This economic expansion was fueled by technological innovation
Read MoreStrategies for Superior Firm Performance and Global Market Entry
Strategies for Superior Firm Performance
Firms achieve superior performance by generating profits exceeding competitive levels.
1. Avoiding Competitors
Focus on positioning the company in markets or segments with reduced competition.
1) Attractive Industry
Target industries with high entry barriers, such as high costs or strict regulations, to deter new competitors.
2) Attractive Strategic Group
Operate in a strategic group within an industry where mobility barriers (e.g., brand loyalty, specialized technology)
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