Value of As bmw hybrid

 Essay in Valuation of Bmw

Bachelors Thesis

Department of Organization Studies Århus, the 3rd of May 2010

Valuation of BMW

- Financial & Strategic Evaluation

Authors Rasmus Ramshøj Pløen Exam no . 282821 BSc (B/IM) Mikkel Kronborg Olesen Exam no . 283755 BSc (B)

Academics Advisor Nicolai Borcher Hansen ASB Aarhus School of Business

TABLE OF ITEMS 1 PREAMBLE................................................................................................................................................................ 4 1 . 1 1 ) 2 1 ) 3 1 . 4 1 ) 5 1 ) 6 a couple of EXECUTIVE BRIEF SUMMARY................................................................................................................................................ 5 SIMPLE INTRODUCTION................................................................................................................................................. 6th PROBLEM AFFIRMATION................................................................................................................................................ 8 COMPOSITION.............................................................................................................................................................. 9 DELIMITATIONS AND ASSUMPTIONS............................................................................................................................ 10 STRATEGIES.............................................................................................................................................................. 12

TRADITIONAL FINANCIAL ANALYSIS........................................................................................................... 13 installment payments on your 1 installment payments on your 2 installment payments on your 3 2 . 4 2 . 5 installment payments on your 6 2 . 7 installment payments on your 8 installment payments on your 9 REARRANGING THE BALANCE BED SHEET - ANALYZING INVESTED CAPITAL.................................................................................. 13 REARRANGING THE PROFITS STATEMENT – ANALYZING NOPLAT...................................................................................... 14 EXAMINING THE FREE OF CHARGE CASH FLOW.............................................................................................................................. 15 REINVESTMENT PERCENTAGES............................................................................................................................................. 16 GO BACK ON PUT IN CAPITAL (ROIC)........................................................................................................................ 16 RESEARCH OF REVENUE GROWTH................................................................................................................................. 17 CAPITAL STRUCTURE – OPTIMUM CAPITAL STRUCTURE.................................................................................................... 18 EXPERT GROUP ECONOMICAL RATIOS.................................................................................................................................. 20 CONCLUSION AROUND THE FINANCIAL EVALUATION................................................................................................................... 21

three or more

THE COST OF CAPITAL................................................................................................................................... 21 several. 1 several. 2 a few. 3 3. 4 several. 5 CALCULATING MARKET VALUE WEIGHT LOADS & DUTY.............................................................................................................. 21 ESTIMATING THE COST OF COLLATERAL.............................................................................................................................. 23 THE CAPM FORMULA............................................................................................................................................. 24 CALCULATING THE COST OF DEBT................................................................................................................................. 28 SUMMARY...