• Research Paper on:
    Phil’s Classic Cars Case Study

    Number of Pages: 10

     

    Summary of the research paper:

    This 10 page paper looks at a case supplied by the student. Phil wants to sell John his company, this paper consider the proposal from Johns’ perspective looks at how the company could be valued to assess the price and then considers a potential venture capital financing proposal. The bibliography cites 3 sources.

    Name of Research Paper File: TS14_TEphilcar.rtf

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    Unformatted Sample Text from the Research Paper:
    and the valuation of the compnay based in the given figures, and then considering the proposed venture capital terms,. The end of the report makes the relevant recommendations on whether  or not to make the investment and any terms that should be attached. Yours sincerely The student Abstract This paper looks at the proposal by Phil to  sell John his car business for $650,000. The book value is $ 462,465 and when using the Dividend discount model the valuation is more than $1.1 million. This indicates it  is likely to be a good price. However, as John cannot raise the full purchase price there is the need to raise capital elsewhere. The part also looks at the  terms which should be attached to the agreement. Table of contents ASSUMPTIONS 2 VALUATION ANALYSIS 2 VENTURE CAPITAL ANALYSIS 9 RECOMMENDATIONS 11 REFERENCES 12 Assumptions Looking at the case study  we are given a figure of $150,000 share capital. For the purposes of this paper where a share numbers are needed we will assume that this is 150,000 1  shares that were issues at launch or latter and that they are all owned by the seller. When looking at the asset values we are also assuming that the  depreciation of the capital assets that has taken place has resulted in the current values also being the current flair market value for all of the assets. Valuation  Analysis If we look at the case of Phils Classic Cars the first tasks is to value the company. There are several ways of creating this valuation. The  first is the use of book value. A basic measure is that of book value. The value of the physical assets of company is used to give the book value 

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