Financial valuation workbook : step-by-step exercises and tests to help you master financial valuation. / James R. Hitchner.

Format:

Book

Author/Creator:

Hitchner, James R., author.

Series:

Wiley finance series

Language:

English

Subjects (All):

Business--Congresses.

Business.

Physical Description:

1 online resource (471 pages) : illustrations

Edition:

Fourth edition with website.

Place of Publication:

Hoboken, New Jersey : Wiley, 2017.

Summary:

Practical valuation exercises with real-world application and expert insight Financial Valuation Workbook cuts the learning curve in half, with practical training for use with any valuation textbook. Packed with tools, resources, and over 300 exercises, this book helps novices get a handle on the complex valuation process, while helping more experienced practitioners organize their engagements. Checklists, flowcharts, reports, information requests, and other resources help streamline the workflow and ensure thorough review, while in-depth coverage places the complexities of the field front-and-center. This new fourth edition features a brand new expanded case study for real-world insight, accompanied by exercises with explanations that deepen the learning process. Expert tips are highlighted throughout to provide additional insight in specific situations, and exercises from basic to advanced map to established training processes. Valuation is as an art, as well as a science, and simply reading a textbook only goes halfway toward true learning- applying what you learn is critical. This book provides hands-on practice alongside useful tools and valuable insight to help solidify your understanding of the many facets of this complex field. * Delve into the intricacies of valuation with a new expanded case study and expert tips * Follow checklists and flowcharts for each phase of the valuation process * Use reports, information requests, and other tools that help organize your workflow * Test your understanding with over 300 exercises organized by major area Organized into standard, recognized, and easily identified sections that lend themselves to quick refreshers as well as start-to-finish study, this book is a truly useful resource for beginner and veteran alike. Whether you're learning valuation for the first time or simply need guidance on an unfamiliar situation, Financial Valuation Workbook provides a key resource for any business valuation professional.

Contents:

Intro

Financial Valuation Workbook

Contents

Preface

Acknowledgments

About the Author

Chapter 1 Valuation Case Study Exercises

1.1 Introduction

1.2 The Valuation Report

1.2.1 Understanding with the Client and Scope of Work

1.3 Introduction

1.3.1 Description of the Assignment

1.3.2 Summary Description and Brief History of the Company

1.3.3 Ownership and Capital Structure of the Company

1.3.4 Standard of Value

1.4 National Economic Outlook

1.4.1 General Economic Overview

1.4.2 Consumer Spending and Inflation

1.4.3 The Financial Markets

1.4.4 Interest Rates

1.4.5 Unemployment

1.4.6 Summary and Outlook

1.4.7 National Economic Impact on Valuation

1.5 Regional Economic Data (as of September 1, 20X5)

1.5.1 Consumer Spending

1.5.2 Manufacturing

1.5.3 Banking and Finance

1.5.4 Labor Markets

1.5.5 Regional Economic Impact on Valuation

1.6 Local Economy

1.7 Industry Outlook: Fabricated Metal Products and Transportation Equipment

1.7.1 Fabricated Metal Products Industry

1.7.2 Transportation Equipment and Auto Parts Industry

1.7.3 Porter's Five Forces Analysis

1.8 Impact on Valuation of Economic and Industry Outlook

1.9 Historical Financial Analysis and Overview of the Company

1.9.1 Income Statements

1.9.2 Balance Sheets

1.9.3 Financial Ratio Analysis

1.9.4 Liquidity Ratios

1.10 Projections

1.11 Appraisal of Fair Market Value

1.11.1 Valuation Approaches and Methods

1.11.2 Summary of the Valuation Approaches and Methods

1.11.3 Asset Approach

1.11.4 Income Approach

1.11.5 Market Approach

1.12 Lack of Marketability Discount

1.13 Reconciliation of Values

1.14 Addendum: Discount Case Study Exercises

1.14.1 Exercise A

1.14.2 Exercise B

Chapter 2 Valuation Case Study Exercises: Solutions and Explanations.

2.1 Addendum: Discount Case Study Exercises

Chapter 3 Financial Valuation Applications and Models Companion Exercises and Test Questions

3.1 Chapter 1: Introduction to Financial Valuation

3.2 Chapter 2: Standards of Value

3.3 Chapter 3: Research and Its Presentation

3.4 Chapter 4: Financial Statement and Company Risk Analysis

3.5 Chapter 5: Income Approach

3.6 Chapter 6: Cost of Capital

3.7 Chapter 7: International Cost of Capital

3.8 Chapter 8: Market Approach

3.9 Chapter 9: Asset Approach

3.10 Chapter 10: Valuation Discounts and Premiums

3.11 Chapter 11: Report Writing

3.12 Chapter 12: Business Valuation Standards

3.13 Chapter 13: Valuation of Pass-Through Entities

3.14 Chapter 27D: Valuation Issues in Preferred Stock

3.15 Chapter 27E: Restricted Stock Valuation

3.16 Chapter 27G: Valuation Issues Related to Stock Options and Other Share-Based Compensation

3.17 Chapter 14: Estate, Gift, and Income Tax Valuations

3.18 Chapter 15: Valuation of Family Limited Partnerships

3.19 Chapter 27B: Valuation Issues in Buy-Sell Agreements

3.20 Chapter 16: Summary of Court Case Valuation Issues

3.21 Chapter 17: Shareholder Disputes

3.22 Chapter 18: Employee Stock Ownership Plans

3.23 Chapter 19: Valuation in the Divorce Setting

3.24 Chapter 20: Valuation Issues in Small Businesses

3.25 Chapter 21: Valuation Issues in Professional Practices

3.26 Chapter 22: Reasonable Compensation

3.27 Chapter 23: The Valuator as Expert Witness

3.28 Chapter 24: Fair Value Measurement and the Valuation of Intangible Assets

3.29 Chapter 26: Business Damages

3.30 Chapter 28: Valuation of Healthcare Service Businesses

3.31 Chapter 29: Determination of Compensation in the Healthcare Industry

3.32 Chapter 30: Special Industry Valuations

3.33 Chapter 31: Valuation Views

Answer Grid.

Chapter 1: Introduction to Financial Valuation

Chapter 2: Standards of Value

Chapter 3: Research and Its Presentation

Chapter 4: Financial Statement and Company Risk Analysis

Chapter 5: Income Approach

Chapter 6: Cost of Capital

Chapter 8: Market Approach

Chapter 9: Asset Approach

Chapter 10: Valuation Discounts and Premiums

Chapter 11: Report Writing

Chapter 12: Business Valuation Standards

Chapter 13: Valuation of Pass-Through Entities

Chapter 27E: Restricted Stock Valuation

Chapter 27G: Valuation Issues Related to Stock Options and Other Share-Based Compensation

Chapter 14: Estate, Gift, and Income Tax Valuations

Chapter 15: Valuation of Family Limited Partnerships

Chapter 27B: Valuation Issues in Buy-Sell Agreements

Chapter 17: Shareholder Disputes

Chapter 18: Employee Stock Ownership Plans

Chapter 19: Valuation in the Divorce Setting

Chapter 20: Valuation Issues in Small Businesses

Chapter 21: Valuation Issues in Professional Practices

Chapter 24: Fair Value Measurement and the Valuation of Intangible Assets

Chapter 4 ValTips

4.1 Introduction

4.2 Chapter 1: Introduction to Financial Valuation

4.3 Chapter 2: Standards of Value

4.4 Chapter 3: Research and its Presentation

4.5 Chapter 4: Financial Statement and Company Risk Analysis

4.6 Chapter 5: Income Approach

4.7 Chapter 6: Cost of Capital/Rates of Return

4.8 Chapter 7: International Cost of Capital

4.9 Chapter 8: Market Approach

4.10 Chapter 9: Asset Approach

4.11 Chapter 10: Valuation Discounts and Premiums

4.12 Chapter 11: Report Writing

4.13 Chapter 12: Business Valuation Standards

4.14 Chapter 13: Valuation of Pass-Through Entities

4.15 Chapter 14: Estate, Gift, and Income Tax Valuations.

4.16 Chapter 15: Valuation of Family Limited Partnerships

4.17 Chapter 16: ummary of Tax Court Case Valuation Issues

4.18 Chapter 17: Shareholder Disputes

4.19 Chapter 18: Employee Stock Ownership Plans

4.20 Chapter 19: Valuation in the Divorce Setting

4.21 Chapter 20: Valuation Issues in Small Businesses

4.22 Chapter 21: Valuation Issues in Professional Practices

4.23 Chapter 22: Reasonable Compensation

4.24 Chapter 23: The Valuator as Expert Witness

4.25 Chapter 24: Fair Value Measurement and the Valuation of Intangible Assets

4.26 Chapter 25: Marketing, Managing, and Making Money in a Valuation Services Group

4.27 Chapter 26: Business Damages

4.28 Chapter 27: Other Valuation Service Areas

4.28.1 A: Valuations for Public Companies and/or Financial Reporting

4.28.2 B: Valuation Issues in Buy-Sell Agreements

4.28.3 C: Valuing Debt

4.28.4 D: Valuation Issues in Preferred Stock

4.28.5 E: Restricted Stock Valuation

4.28.6 F. Valuation of Early-Stage Technology Companies

4.28.7 G. Valuation Issues Related to Stock Options and Other Share-Based Compensation

4.28.8 H. Real Option Valuations

4.28.9 I. Maximizing Shareholder Value

4.29 Chapter 28: Valuation of Healthcare Service Businesses

4.29.1 Addendum 1-Mountain Surgery Center, LLC

4.29.2 Addendum 2-Valuation of Walnut Hospital

4.30 Chapter 29: Healthcare Compensation

4.31 Chapter 30: Special Industry Valuations

4.31.1 A: Construction

4.31.2 B. Oil and Gas Exploration and Production Valuations

4.31.3 C. Radio

4.31.4 D. Cable TV

4.31.5 E. Restaurants

4.31.6 F. Bars

4.32 Chapter 31: Valuation Views and Controversial Issues: An Illustration

Chapter 5 Income Approach Valuation Process Flowchart

5.1 Introduction

5.2 Income Approach Valuation Process Flowchart.

Chapter 6 Marketing, Managing, and Making Money in Valuation Services

6.1 Smart "Multi-Marketing": Leveraging Your Effort-Selling and Networking Beyond One on One

6.2 Risk Management: Engagement Letters, Reports, and Turning Down Work

6.3 Engagement Letter and Report Language Examples

6.3.1 Caution for Using Engagement Letter and Report Language Examples

6.3.2 Purpose and Objectives

6.3.3 Disclaimer

6.3.4 Form of Work Product

6.3.5 Fees and Billing

6.3.6 Additional Options for Hourly Billing Where Attorney Retains Firm

6.3.7 Arbitration Provision (Could Be Mediation Provision)

6.3.8 Representations

6.3.9 Statement of Assumptions, Contingent, and Limiting Conditions

6.3.10 Indemnity

6.3.11 Daubert Challenges

6.3.12 Relationships

6.3.13 Confidentiality and Work Papers

6.3.14 Termination

6.3.15 Other Services

6.3.16 Corporate Obligation

6.3.17 Distribution of Analysis, Conclusions, and Report

6.3.18 Acceptance

6.4 Assumptions and Limiting Conditions Examples

6.4.1 Caution for Using Assumptions and Limiting Conditions Language Example

6.4.2 Language Examples

6.5 Keeping Up Technically

6.6 Practice Benchmarks for Productivity, Billings, Realization, and the Bottom Line

6.7 Finding, Training, and Retaining the Right Staff for Your Practice

6.8 Delegate Litigation Engagements to Staff

6.9 Appendix 6.1: Sample Gibraltar E-Flash Cover Sheet

6.10 Appendix 6.2: Sample Gibraltar E-Flash

6.11 Appendix 6.3: Sample Control Sheet

Chapter 7 Practice Management Workflow Procedures

Introduction

Section I-Practice Management Flowcharts

Section II-Practice Management Workflow Process

Initial Client Contact

Obtaining the Engagement

Active Client

Inventory of Client Information

Analysis

Report Setup

Report to Project Manager.

Report to Final Review.

Notes:

"With website"

Includes index

Includes bibliographical references at the end of each chapters and index.

Description based on online resource; title from PDF title page (ebrary, viewed May 11, 2017).

ISBN:

1-119-31247-7

1-119-31235-3

OCLC:

986031838