corporate valuation课件.pdf

FINM3005 Corporate Valuation Tutorial 2 Week 2 Hedda Cui 1 Agenda 1. Intro • Consultation: 10-11am Friday CBE 3.52 2. Tutorial • Chapter 1 Review Questions 1, 4, 8 • Q1 benefits of a long-term perspective on value creation • Q4 does growth getting bigger translate into creating value? • Q8 conservation of value principle • Chapter 2 Review Questions 1, 2, 3 • Q1 How does return on invested capital (ROIC) affect a company’s cash flow? • Q2 why should a company or investor analyse growth and ROIC? • Q3 Under what circumstances does growth destroy value? 2 Consultation Email • Tutor name: Hedda Cui • Email: hedda.cui@anu.edu.au • Consultation hours: 10-11am Friday CBE 3.52 Please use your ANU email account and put “FINM3005” in your email subject, otherwise we won’t be able to get your email 3 Chp1 Q1 • What are the benefits of a long-term perspective on value creation? For companies? For the economy? 4 Q1 • One benefit of a long-term perspective on value creation is that it leads to only engaging in activities that create value and not wasting effort on activities that do not. • Value Inc. generates higher cash flows with the same earnings because it invests only 25 percent of its profits (making its investment rate 25 percent) to achieve the same profit growth as Volume Inc., which invests 50 percent of its profits. Value Inc.’s lower investment rate results in 50 percent higher ca