One of the fundamental premises of financial reporting by business enterprises is that it should provide users with information that will assist them in predicting the amounts, timing and uncertainty of future cash flows of the enterprise. The requirement for alternative income measurements was partially justified by an assumed correspondence between the new information and the cash flow prediction objective. The existence of that correspondence, however, has not been precisely verified by the research to date. The overall objective of this research was to contribute additional evidence to address conflicts in the prior research findings, and additionally, to consider possible industry and firm-size effects on the ability to predict cash flow from alternative incomes. A data base was compiled from COMPUSTAT tapes (historical cost), the Parker model restatement procedures (general price-level) and the Easman data base that used the Falkenstein-Weil restatement model (replacement cost). One conclusion was that the alternative income measurements produce different cash flow forecast errors. Overall, historical cost net income produced the lowest forecast errors for two approximations of cash flow. The inclusion of monetary gains/losses and holding gains/losses in net income did not improve predictions, and in one case worsened them. Another conclusion was that a multiple linear regression model produced significantly lower forecast errors for both cash flow definitions. The simple linear and exponential regression prediction models did not produce different forecast errors. Finally, both an industry effect and a firm-size effect were identified in the prediction of working capital from operations. When net income plus depreciation was the object of prediction, an industry effect was identified but not a firm-size effect. The overall impact of these findings is that the alternative income measurements should be justified on some basis other than facilitating cash flow prediction. In fact, a random-walk cash flow prediction model performed better than any prediction based on net income. Financial accounting standards in the area of alternative income measurements should consider possible industry and firm-size differences. The choice of cash flow definition is apparently critical because different conclusions were obtained. / Ph. D.

The thesis Valuation of TŘINECKÉ ŽELEZÁRNY, a. s. briefly explains the principals of business valuation and the methods used. In the theoretical part the main emphasis is put on the methods and approaches used in valuation of TŘINECKÉ ŽELEZÁRNY, a. s. Practical part describes the valuation of TŘINECKÉ ŽELEZÁRNY, a. s. The financial analysis mainly assesses the principals of going concern, financial health of a company and then proposes the changes in the structure of assets and liabilities, which could improve the profitability of a company. The financial analysis is based on both horizontal and vertical analysis of financial statements and also on index ratios. The strategic analysis examines the company's environment and its influence on society. The analysis is performed by using SWOT and PEST analysis and Porter model of five competitive forces. Financial plan follows financial and strategic analysis and works with the predicted results of a company in the future. The results of the financial plan are used for achieving of free cash value and business valuation thanks to the model of discounted cash flow.

Theoretical part: the users of financial analysis, methods and tools of financial analysis. Practical part: the branch characterization, analysis of absolute parameters, differential analysis, cash flow analysis, financial ratios analysis, Du Pontova analysis, inequality, economic standard, Altman index, IN99, IN01, EVA.

This work considers question of buying a residential property for renting it in comparison to a fictitious financial instrument by a retail investors. The financial instrument is the only alternative investment possibility to a retail investor.

Taiwan¡¦s DRAM has high technology, strong capital, and standardized products, but it still can not be escaped from economic fluctuations. With this impact, Taiwan¡¦s DRAM has faced the problem of cash flow imbalance; moreover, the problem is going from bad to worse. The study is based on the view of system dynamics and focuses on fixed assets and investment skills of the investment-cash flow, operating cash flow, and business cycles of Taiwan¡¦s DRAM. It considers the features of dynamic complex, including loop, time delay and nonlinear and constructs a system dynamics model. The model would apply key elements to suppose an investment strategy and then to mimic an investment situation. The aim of the study will figure out the suitable investment strategy to assistant Taiwan¡¦s DRAM making the most of its inputs. The study discovers: (1) the best investment strategy for 10 year is 5.0 (to invest three fixed asset sets); for 30 year is 6.0 (to invest manufacturing skills and one fixed asset set) and 7.0 (to invest manufacturing skills and two fixed asset sets), (2) the most effective element for investment strategy in the long run is to invest fixed asset sets rather than upgrading manufacturing skills, (3) to keep investing in semiconductor fabrications would endanger Taiwan¡¦s DRAM itself; hence the superior limit investment quantity for fixed assets are five to six sets,(4) the best investment timing for Taiwan¡¦s DRAM is the first two business cycle season, and (5)when Taiwan¡¦s DRAM faces economic downturn, the effective investment strategy for it is few. If Taiwan¡¦s DRAM doesn¡¦t change its industrial structure, it will face the high risk of loss.

[Truncated thesis] This thesis investigates the relevance of Jensen’s (1986) free cash flow theory to the market for corporate control in Australia. Jensen posits that firms generating cash in excess of that required to fund positive NPV projects face greater agency problems as the free cash flow exacerbates the conflict of interest between shareholders and managers. One implication from Jensen’s free cash flow theory is that firms with high levels of free cash flow are more likely to initiate takeovers that are value-decreasing. There are two practical issues in testing Jensen’s theory; first, constructing an appropriate proxy for free cash flow and secondly, identifying firms with free cash flow. These issues are addressed directly in the first of the two essays that comprise this thesis. The first essay develops and assesses the merits of four operational measures for free cash. One of them is a stock measure while the others are flow measures. The stock measure is included because previous studies have mostly used the stock measure of cash when identifying firms rich in free cash (henceforth, cash rich firms), despite that Jensen (1986) has made explicit reference to free cash flow. We test the validity of this approach by investigating whether stock measures of free cash coincide with flow measures. Our results reveal that the stock and flow measures of free cash give rise to quite different lists of cash rich firms. This is an important empirical contribution of the thesis. Given the lack of definitive criteria for deciding which operational measure of free cash flow is most appropriate, we identify multiple sets of free cash flow firms based on the different operational measures developed. For each operational definition, two methods are used to identify cash rich firms. The first method defines a firm as cash rich if its cash variable ranks in the tenth percentile. The second method defines firms as cash rich if their cash variable value is greater than one and a half standard deviations of the value predicted by a model.

Zugl.: Berlin, ESCP-EAP Europ. Wirtschaftshochsch., Diss., 2009

The aim of the diploma thesis is to determine the market value of the company Westvaco Svitavy s. r. o. to the date 31. 12. 2009 for sale to an unknown buyer. In the practical part, after a brief introduction of the company followed by strategic analysis, which results in setting the pace of sales growth. In contrast, financial analysis, assessment of the financial health and stability of society through absolute, ratio, differential and global indicators. Followed by a financial plan, which was worked on between 2009 - 2012. In conclusion, the company is evaluated using two - stage method of discounted cash flow in the version of FCFF. As complementary methods were used financial value and economic value added.

This Master thesis deals witht he valuation of TBG Betonmix, a. s. to the date January 1, 2013. As a valuation method was used the earnings valuation method based on discounted free cash flow to the equity (FCFE). Important parts of Master thesis are analysis of external environment, analysis of building industry and financial analysis of the company. Process of valuation was implemented on the base of well-prepared financial plan and quantification of necessary input variables such as discount rate and rate of growth. Was used regression analysis as the basic method to predict the most signifiant value generator, sales. Results were then adjusted according to the predictions published in qualitative studies of the Czech building industry. The demand for enterprise production was reduced as a result of the economic crises, it enforced production reduction and led to decline in sales and profit from year 2009 and also deterioratingof rentability indicators or long-term assets turnover.

The main objective of my thesis is to evaluate an innovative organization STOMATOLOGICKÉ CENTRUM MUDr. IVO MAREK s.r.o. and its innovative process. Evaluation method uses the discounted cash flows of APV variant. The innovation process value is estimated as a difference between the estimation of the organization value and a hypothetical estimation of the organization without the innovative process. The result shows that the innovative process has a significant effect on the overall value of the organization.