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DCF Analysis: Forecasting Cash Flows

In order to get started with a discounted cash flow analysis, we forecast a company’s free cash flows and then discount them to the present value using the company’s weighted-average cost of capital (WACC).

Forecasting free cash flows, however, can be quite complicated – it is truly an art. There are many things that can impact cash flows and as many as possible should be taken into account when making a forecast:

What is the outlook for the company and its industry?

What is the outlook for the economy as a whole?

Is there any factors that make the company more or less competitive within its industry?

The answers to these questions will help you to adjust revenue growth rates and EBIT margins for the company. Let’s assume a hypothetical example in which we have a normal economic outlook for the future, a positive outlook for the industry and an average outlook for our company.

Given these assumptions, we can simply look at our company’s historical performance and continue this performance out into the future. Looking at our hypothetical company’s revenues for the past three years, we can calculate the compound annual growth rate (CAGR) and use it to forecast revenue for the next five years. The formula for calculating CAGR is:

(Year 3 Revenue/Year 1 Revenue)^(1/2 Years of Growth)-1

Next, let’s calculate the company’s EBIT margin so that we can forecast earnings before interest and taxes. The formula for EBIT margin is simply EBIT over Revenues. To forecast EBIT we simply multiply our forecasted revenues by our EBIT margin.

The Taxman Cometh

To get to free cash flows, we now need to forecast taxes and make certain assumptions about the company’s needs for working capital and capital expenditures. We calculate our company’s tax rate by dividing the company’s historical tax expenses by its historical earnings before taxes (EBIT less interest expense). We can then forecast tax expenses by multiplying the tax rate by our forecasted EBIT for each year.

Once we have after-tax income forecasted (EBIT – taxes), we need to add back depreciation and amortization, subtract capital expenditures and subtract working capital investments. We can forecast depreciation and amortization expenses by calculated their percentage of historical revenues and multiplying that percentage by forecasted revenues.

Capital expenditures are made to upgrade depreciating equipment and invest in new assets and equipment for growth. Although capital expenditure is typically higher than depreciation and amortization for growing companies, we will make the simple assumption that capital expenditure is equal to depreciation and amortization in order to forecast capital expenditures in the future.

Finally, we need to forecast working capital investments. In order to grow the business, we would need a growing amount of working capital on the balance sheet in order to achieve higher revenues. This addition of capital to the balance sheet would result in a negative cash flow. For our model we will assume that working capital needs to grow by 1{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc} of revenue, therefore our working capital investment forecast …

Watch TV on Computer with Satellite TV Software

Being able to watch TV on computer monitors or laptops is a great way to get all the entertainment you need from your PC with just an internet connection. However, the satellite TV on your computer market is large, and as such there are many packages available, some highly recommended, whereas others a complete waste of money.

As well as having a range of channels to watch, the channels available need to be from some of the major networks; Else you are not getting value for money. These include the likes of BBC, NBC, CNBC, FOX, and ESPN, plus many more popular networks. You will also more than likely want to watch live sport on your PC, the latest movies, music, educational, news, weather, shopping channels, for example, so should pay attention to the networks the satellite TV software provides and the genres covered.

If you have a relatively slow internet connection you may also need to check whether the software will run smoothly. The software I recommend works even on the slowest of internet connections, though some of the satellite TV software available does not. Furthermore, the software should work without any need for further software or hardware that can cost you more money than you originally expected.

Although some people expect to pay a monthly fee for satellite TV on their computer, the software I use actually costs just one low price. This can obviously save you a lot of money in the long-run, should you choose reliable software.

For those of us that are not very computer savvy you may also want to make sure the software is easy to setup. Having got the software up and running you can then simply load the software to watch the television channel of your choosing.

One of the questions I'm commonly asked is whether the software is legal. Although I can not comment on every satellite PC software available, I can say that the software that I recommend is 100{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc} legal and involves no hacking or cracking. …

How Many Business Cards Should You Order?

In the modern world of business and networking there is so much conflicting advice about the giving out of business cards. Some say give them out to everyone you meet, whether they are the pizza delivery guy or the CEO of an international company. Others say to give them out more strategically, only to qualified leads or potential customers that you’ve already chatted to and connected with. When it comes to ordering new business cards, the number you need obviously depends on which of these strategies you follow. Some people will get through 1000 cards in a few months, others will make 500 cards last two years.

Here are some additional factors to consider when deciding how many business cards to order.

Do you like to update your branding often?

Often those in the creative and design fields like to create new twists and fresh visuals for their brand and their business cards. They get bored of giving out the same old card after six months or so. In this case guesstimate how many cards you will give out in that time period and order just that amount.

Are you likely to move in the next year or so?

A move may result in a new landline number even if you don’t print your physical address on your cards. There is nothing more unprofessional than crossed out numbers on otherwise beautifully printed business cards, so order a smaller run of perhaps 500 cards to last you until your move.

Are you expecting to attain new qualifications or accreditations in the next year?

If you are likely to want to add those accreditations to your card, then it will make sense only to order enough cards to last until that point.

Do you attend lots of networking events?

If you routinely give out lots of business cards at networking events, then you will get through 500 cards in no time. In this case a larger order of 1000 or more cards makes sense, so that you don’t have to keep re-ordering more.

Do you mostly work online?

If you mostly work and network online and give out only a few cards every now and then, even a small order of 500 cards might last you for years. In that case work smart with the contact info that you provide, so that it is less likely to go out of date. Leave off your physical address and landline and just give out email and web addresses and perhaps your business cellphone number. As long as your website is kept up to date with your contact info then your card will also remain current. Or find a printer who is happy to print short runs of cards and just order 200 at a time.

As a general rule order enough cards to last you six months, or perhaps a year if you prefer not to keep tweaking your design.…

Web Design – 3 Reasons You Should Hire a Designer

Many online businesses start with little or no start-up capital. For this reason, many business owners opt to do all of the work themselves, including the creation of a product or service, creating a marketing plan, and the design and implementation of their company website. As the company business begins to grow, often time, the self developed website solution becomes too small to handle the expanding needs of the company. This can cause the business to halt all growth and sales several days to redesign the company website for increased growth.

If this sounds familiar to you, you may have started your company with very little start-up capital, and you may be hesitant to give your hard earned money to others for something you think can be done yourself! However, there are three reasons you should hire a web designer to save you not only time and money, but also heartache and frustration.

1. Saves Time to Run Your Business: By letting a web designer do a specific assigned job for you, you are not simply handing over the “dirty work” to the web designer. Actually, by paying the designer, you will eliminate all of the worry and frequent annoyances that often appear when trying to design your own website. This will allow you more time to focus on your business and the day to day operations of your company.

2. Quick Fix Problems: By hiring a designer, you are hiring professionals that are skilled at what they do. When you outsource your web design jobs, you will not have to be concerned with the issues that may arise, you can simply contact the designer to fix the problem. The designer will be able to quickly assess the problem and provide a quicker solution than you will probably be able to assess.

3. Professionalism: Surely, the designer you hire has been doing their job for a longer length of time than you. By hiring a web designer, you will have a more professional and polished finished product. Web designers do their jobs for a living, so they have to be superior at what they do!

Hiring a designer can be one the smartest business decisions you will ever make. Don’t trust just anyone to make your vision a reality. Hire a web designer that cares and one that can help your company have the professional image it deserves.…

Learn To Trade At Home And Start Building Wealth In Forex

Forex trading used to the sole domain of banks, large multi-nationals and a few well-placed currency speculators who had insider details of the intricacies of the foreign currencies and how they were traded. That means that regular individuals were virtually locked out of this industry. Forex trading is basically trading in the foreign currencies of different nations. By the sound of it, one may equate building wealth with forex to a trading in stocks but there is a significant difference. In stock trading, the prices remain virtually the same across the board. This is not the same with forex trading where the prices differ and there are different levels of access. By different levels of access we mean that in forex trading, the major players namely the central banks and multi-nationals who control the billions of dollars that is moved daily mostly have more access and control to price-setting than the lesser players.

Learn a trade at home and start building wealth in forex as it is not as complicated as it is made out to be. With the creation of specialized software for trading in the forex market, ordinary people are now have access to the same state-of-the-art tools that the major financial players in the forex market have. The software used to build wealth in forex is now easy to use and no prior experience is necessary. Not only is it possible to build wealth and learn a trade at home about the forex market but even amateurs who have never heard of the forex market leave alone traded in it can now dip their fingers.

Building wealth with forex is also very convenient. Unlike the forex trading bankers who work for the large banks and other multinationals and have to work full-time, it is now possible, with the special software and tools recommended by the forex wealth builder, to work at their own pace, even part-time. This means it is not necessary to quit one’s current day job to build wealth in forex. Once the individual becomes comfortable with the tools of forex wealth building they can easily ease out of their day job and do it full-time. Hundreds are now following this technique from the learn a trade at home.

Building wealth in forex is also virtually risk free. The system is backed by an impressive 100{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc} money back guarantee meaning that for any reason should the buyer find that the system does not work, or finds themselves disillusioned in any way, there is absolutely no financial loss on their part.

Building wealth in forex is easy to learn because the learning curve is extremely small. Previously, one had to be thoroughly familiar with banking, not to mention prices, trades and trade practices, different world currencies and their denominations and so forth. The new forex wealth builder system takes all that and simplifies it into palatable bits of information that anyone can access and use.…

Home Owners Insurance and Trees – You Love Them Your Insurance Company Hates Them

Coverage for damage caused by trees and for the trees themselves is one of many confusing areas of a Homeowners insurance policy.

Your neighbors’ tree falls and damages your garage, shed and fence.

Will insurance pay for the damage?

Whose insurance should pay?

What will they pay for?

A tree falls in your yard.

Will your insurance policy pay for it to be removed?

Will it pay for a new tree?

A tree limb breaks from wind or a lightning storm and is dangling over your house.

Will your insurance policy pay for it to be removed?

What if it’s hanging over a neighbor’s house?

A tree falls on your car.

What policy will cover the damage to my car?

Is there coverage for the tree removal?

First, the basics; it does not matter whose tree it was. If there is damage to your property (from anyone’s tree) your insurance policy is the one to respond. If there is damage from your tree to a neighbor’s property, their insurance policy is involved. If there is damage to both properties (from anyone’s tree) both policies will be involved and each will deal with its own property only.

The only time a Homeowners insurance policy should be involved with damage to someone else’s property is if there is liability involved. That is if the tree was rotten or leaning and should have been removed or trimmed prior to the damage occurring. Even then the damaged properties insurance policy will generally pay for their customer’s damage and then try to recover their money from the tree owners’ insurance company.

Second, the important consideration for coverage is; what is physically damaged. If a tree, or portion of a tree, falls and does not damage any real property there is no coverage. Real property is any building, structure or contents item it does not include land, landscaping or plants of any kind. A fence, shed, patio, driveway, swing set or bicycle would count as real property.

If a tree falls into your yard and does not cause any damage to the home or any other real property then there is no coverage to remove the tree or for any cleanup. Sorry!

If there is damage to anything such as a fence then the policy should cover repairs or replacement of the damaged item(s) and also limited coverage for removal of the tree. To make this even more confusing; the tree removal coverage is divided in 2 phases.

Phase 1: Getting the tree removed off of the real property is covered with no sub-limit. That is if a tree is on a storage shed then the first stage of tree removal is to remove it off the shed so repairs can be made. The only limit for this part of the removal is the coverage limit on this section of your policy; in this case the Other Structures coverage.

If the repairs to the shed and the tree removal combined are greater than the

Perfume – A Money Making Business

Perfume has been around for ages; for longer than we can even fathom. It has become so ingrained in a woman’s essence that most women won’t leave home without it. Among many perfumes to choose from, Bvlgari perfume has made great strides in the world of scents; a world that everyone wants a piece of.

The perfume industry is at its peak for women’s cosmetics. Almost every department store in the world sells it, as well as many stores and private owned businesses. That is because of their money making capabilities and the attraction that it brings to women.

Every business that is anything wants a piece of some sort of perfume stock. That is because the liquid magic that casts spells on the world has a way with women and men everywhere; and the money is not so bad either. Perhaps perfume is so ingenious because of the way it makes people feel. It has the ability to make a woman feel like she is dressed up and fancy with just a quick spray from a bottle.

Not only does every store in the world want to sell this much in demand product; but every brand name out there wants to start there own. Just like Bvlgari started out in jewelry and other fine products; so too it was not long in coming before Bvlgari perfume was in the making. Everybody who is somebody, and even those who are not, want to make their own perfume because of being such a wanted and needed product.

There are never enough smells and never enough names. Movie stars, as well as any Joe on the street will make their own line. The way it sells is by appearing as unique and exotic, and having that perfect scent. There is never enough perfumes on the market, which is why every day you will hear of a new line.

When starting out, all it takes is one person to wear it and question what it is for it to take off. A lot of times this is how small companies make it big. Perfume has a way of attracting the person wearing it and the person surrounding them.

Perhaps it is a good business to start; making your own perfume. It can really make it with the right tools. If you have the right name, a catchy slogan, and good products; that is a starting point. No matter that you are not a popular brand name; everyone starts out small.

You may not become the next Bvlgari perfume, but if it is such a money making business due to its very high demand, you may at as well give it a shot. Nobody said it is a sure win, but it certainly does not hurt to try. If you attract the right crowd, you may just have your in. After all, it may only take one person (or one nose) to set the trend and bring in the hordes once they smell something …

How To Maintain Technology In Your Business

Whether you like the idea or not, most businesses today survive primarily because of modern technology. Technology is used in business for keeping records, receiving payments, paying workers, and a lot more. Even small businesses today rely on technology to further advance their cause. If there is one challenge regarding technology in business, it is in the area of upgrading and maintenance, because it requires not only a budget but also a lot of patience in your part as the owner.

Not all people can easily go with the flow of high-end computers and complicated office machines. If you are one of those people, it is important that you list down all high tech equipments and machines you have in your office and learn how to operate each one of them. Familiarize yourself with computer software and programs as well, especially those that are used for database.

Organizing a technical support team is a good idea. Look for an IT expert to lead the team in making sure that every office equipment is working at full potential and that the system has zero loopholes as possible. When assigning a person to lead your tech support team, consider not only his skills and knowledge concerning business technology but also the quality of his experience as an IT expert.

Set aside a time each week and each month to have your system checked by your tech support team or by yourself. Have someone write a report regarding the check up to be submitted to you for evaluation. The feedback should contain information regarding the status of the system and if a software or hardware needs to be upgraded or not. Moreover, encourage your workers to report glitches as soon as possible.

Finally and most importantly, create a budget for the maintenance of your business technology. Avoid the mistake of waiting for equipment and system problems to become serious before deciding to spend money for repair. The best thing to do is to dedicate a certain amount of money for maintenance and repair beforehand. Doing this will help you prevent major setbacks and help you save money in the longer run.

There is absolutely no easier way to advance your business than with careful planning and preparation not only in the promotion of products itself but in the logistics and essential organ of the business body as well which is business technology.…

Sell ​​Beats For Money

Did you know that you can actually sell beats for money? If you are a producer and you love to create your own beats, then I have good news for you. You can actually make some money in the music industry by just creating your own beats.

Everyday a lot of new andcoming artists which includes singers and rappers need instrumentals so they can start writing their music. Instrumentals actually help by inspiring them and help them in creating their song. This is the reason why they usually go online searching for some beats to purchase. This is where you come in.

Fortunately, it is easy to sell beats for money. Here is a short but effective way on how to do it.

1) Check the Requirements

Before you can start making your own beats, you need to have certain requirements. First, you will need to have a laptop and Internet connection. Your laptop will be where the beat software will be installed. This is where your beat creation process will take place. Meanwhile, the Internet connection is for selling your beats. You need to be able to visit beat websites so you can start posting and making money off your instrumentals.

2) Start Creating

Once you have the requirements ready, it is time to start creating your own beats. You can do this by carefully selecting and studying a beat making software. If you are going to browse the Internet, you will find that there are a lot of beat making software available. Choose one that appeals to you and spend your time learning it. It may take days but it will be worth it. After learning, you will now be able to create your own beats.

3) How to Sell Your Instrumentals

When you have your beats ready, you can now log online and sell your beats for money. There are many ways to sell your beats. You can either have your own website or you can simply post your beats in beat databases. Having your own website helps in attracting professional artists. It gives them a place to listen to your beats while getting to know you as a producer. Meanwhile, posting your beats on databases will give you more exposure. And you can expect that people who visit these websites are really there to purchase some beats.

While you can do both so you can sell your beats for money, you can start with posting your beats on databases if you do not have the initial money to create a website. It will get you started in the beat making industry without initial funds.

So as you can see, selling beats for money is actually easy. You just need to carefully choose your beat making software and you need to have some listening skills. Also, remember that it is better to spend more time in crafting your instrumentals. High quality will always be better than high quantity. Only expect to make lots of money when you …

Leading Female Experts and Personal Brand: Who Do You Influence?

Last week Time Magazine shared some of the world’ best known Personal Brands: the profiles of the world’s 100 Most Influential People. Jeff Bezos graces the cover and each person featured is a celebrity or political figure. The article about each person is written by another influencer. For example, Melinda Gate’s profile is written by Sheryl Sandberg. She describes Melinda as ‘a fierce advocate for women around the world and that her impact will be felt for generations’.

The edition is certainly inspiring, yet the challenge for us as women is that sometimes we see Influencers like this and think ‘what can I offer? How can I possibly make such an impact?’

And when I hear women say this, my thoughts are drawn to a special lady called Lillian Armfield.

Lillian Armfield was born on 3 December 1884 at Mittagong, New South Wales, daughter of George Armfield, a labourer, and his wife Elizabeth. Educated locally, she was highly intelligent, well schooled and was described as having a good head for numbers.

Before her time

In 1907 she became a nurse at the Hospital for the Insane, Callan Park, Sydney, where she looked after female inmates. Due to her competence and kindness to patients, in 1915, the medical superintendent recommended she apply for a newly established post. This post was as a police recruit in the NSW police force. At the time there were no female police officers in Australia, but this little hurdle didn’t deter her. She thought she would be well suited to a career on the front line.

Lillian was successful in her application and in her starting role was paid the grand sum of 7 shillings, 6 pence a day. Unlike her male colleagues, however, Lillian’s contract specified that no uniforms were to be provided and no overtime or expenses were to be allowed.

After a year’s probation she was enrolled as a special constable, however, her promotion came with a catch. In what would seem unbelievable in today’s workplace, Lillian was required to sign an agreement with the inspector-general of police. This made her subject to the same rules and discipline as her male colleagues. However, without the right to any compensation for injuries received in carrying out her duties. In addition to this quite overt discrimination, Lillian was also required to forego her right to superannuation and pension benefits upon retirement.

Overseas interest

The experiment of Lillian Armfield’s appointment was watched with intense interest overseas. She was the first plain-clothes female detective, exercising the same powers of arrest and working side-by-side her male colleagues. So foreign was this concept of a female policewoman, that it gained international attention.

In Paris, a captain for the French police declared that policewomen would be the subject of jeers and prompted the following jingle in a Sydney newspaper:

“In gay Paree no police you’ll see parading around in skirts

For France prefers her mademoiselles as dainty, pretty flirts,

No Sergeant Armfield there you’ll find, forever on the roam,

The