tailieunhanh - Lecture Hospitality financial management: Chapter 8 - DeFranco, Lattin

Investment analysis makes up the eighth chapter. The application of time value of money and market value concepts and skills to investment analysis, weighted average cost of capital, discount rate, the capitalization method of valuation as they apply to investment analysis, investment analysis tools, investment calculations using a business calculator and an Excel spreadsheet, and factors impacting investment analysis calculations are explored in this chapter. | Chapter 8 Investment Analysis Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Chapter Overview Investment Analysis Application of TVM and Market Value WACC Discount Rate Capitalization Method of Valuation Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Chapter Overview Investment Analysis Tools Payback period NPV IRR MIRR Factors Impacting Investment Analysis Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Components of Investment Analysis WACC Discount Rate Capitalization Method of Valuation Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved WACC Used to calculate present value of an investment Rate used to discount future cash flows Mix of debt and equity depends on how much the company can borrow and pay debt service Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved WACC Review Amount of interest expense and cash flow allotted to equity investors divided by the amount of capital Takes into consideration: Capital mix Tax effect Interest portion of debt service treated as an expense for tax purposes in the US Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved WACC Calculation WACC = wd kd (1-T) + we ke Weight of debt = wd Cost of debt = kd (1-T) Tax rate of business = T Tax effect = (1-T) Weighted cost of debt = wd kd (1-T) Weight of equity = we Cost of equity = ke Weighted cost of equity = we ke Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Discount Rate Includes the cost of debt and investor’s required ROI Used to calculate present value of an asset by discounting each year’s cash flow Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Capitalization Method of Valuation Values the asset’s prior twelve months’ cash flow Provides the asset’s approximate market value Cap Rate Method Equation CR (X) = CF or X = CF/CR X = estimated current market value CR = cap rate (WAAC) CF = prior or trailing 12 months of cash flow Copyright © 2007 by John Wiley | Chapter 8 Investment Analysis Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Chapter Overview Investment Analysis Application of TVM and Market Value WACC Discount Rate Capitalization Method of Valuation Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Chapter Overview Investment Analysis Tools Payback period NPV IRR MIRR Factors Impacting Investment Analysis Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Components of Investment Analysis WACC Discount Rate Capitalization Method of Valuation Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved WACC Used to calculate present value of an investment Rate used to discount future cash flows Mix of debt and equity depends on how much the company can borrow and pay debt service Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved WACC Review Amount of interest expense and cash flow allotted to equity investors divided by the amount of capital Takes into consideration: .

• Quản trị kinh doanh
• Financial management
• Hospitality financial management
• Hospitality industry management
• Investment analysis
• Investment analysis
• Discount rate
• Financial statement
• International trade transactions
• Fundamentals of financial management
• Financial statement analysis
• International financial management
• Quản lý tài chính
• Multinational financial management
• Exchange rates
• Financial environments
• Overview of Financial Management and the Financial Environment
• The financial environment
• Forms of business organization
• Determinants of stock pricing
• Financial instruments
• Practical financial management
• Financial background
• Financial statements
• Financial planning
• Financial system
• Financial ratio
• IT financial management
• Setting the scene
• IT financial management maturity
• Parameters influencing IT financial management
• Costs of IT financial management
• More quantifiable benefits
• Overview of roles
• Analysis of financial reports
• Analyzing financial statements
• Management decision making
• Foundations of financial management
• Review of accounting
• Financial analysis
• Financial forecasting
• The financing decision
• Financial leverage
• Current asset management
• Paper F7
• Revision kit 2016
• Management Financial
• Financial Management Exam Review
• Review of Financial Management
• Study text 2016
• Lecture Multinational financial management
• International financial reporting standards
• Foreign exchange risk management
• Financing decisions
• Investment decisions
• Role of management
• International cash management
• Cash flow analysis
• Centralized cash management
• Intermediate financial management
• Financial options
• Corporate valuation
• Corporate governance
• Financial markets
• Cash flow
• Analysis of financial statements
• Ratio analysis
• Interest rates
• Financial institutions
• Forecasting sales
• Business environment
• Limited liability company
• Common size analysis
• Statement analysis
• Break even analysis
• Break even point