HI Can read my word document that I have written from the excel


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HI Can read my word document that I have written from the excel spreadsheets you helped me on. Can you tell me what specific points I should add into the word document from the calculations on the following tabs Dividends using geometric means and reworked WACC FCF valuations and 5 year sensitivity analysis the IS and BS projected 5 year forecasts ASP SESSION 4 DELIVERABLE.docx FINANCIAL STATEMENT ANALYSIS SESSION 4 DELIVERABLES Michele Weill Pepperdine University EMBA 105-S / Trimester II: Accounting and Finance Module Dr. Abraham Parks April 17, 2015 Fidelity National Financial (FNF) is amongst the large and well established companies that issues dividends. FNF is a holding company and depends on distributions from its subsidiaries for cash, as their primary assets are the securities of our operating subsidiaries. FNF’s ability to pay interest on their outstanding debt and other obligations and to pay dividends is dependent on the ability of our subsidiaries to pay dividends or make other distributions or payments to the holding company. The title insurance subsidiaries must comply with state laws which require them to maintain minimum amounts of working capital, surplus and reserves, and place restrictions on the amount of dividends that they can distribute to the holding company. The maximum dividend permitted by law is not necessarily indicative of an insurer’s actual ability to pay dividends. The ability to pay dividends can be constrained by business and regulatory considerations, which could affect an insurer’s ratings or competitive position, the amount of premiums that can be written and the ability to pay future dividends. Since our ability to pay dividends does depend on business and regulatory conditions, the holding company may need to retain cash in our underwriters as well. Through the strength of the acquisitions, FNF’s subsidiaries continue to allow them distribute dividends. Black Knight has provided significant recurring organic revenue growth, strong EBITDA margins and significant unregulated cash flow. The solid balance sheets enable payment of cash dividend, repayment of debt, continued investment in core businesses and repurchase of shares. FNF maintains their track record of creating value for shareholders and underwriters in order to maintain their ratings or their statutory capital position. SECTION I. DIVIDENDS AND DIVIDEND VALUATION MODEL DIVIDEND USING GEOMETRIC MEAN TAB DIVIDEND GROWTH AND REWORKED WACC TAB The basic premise of common stock and dividends is that an investor buys stock in a company, expecting to receive dividends and ultimately an increase in share price when it is sold. They hope that the value of a share of stock will be equal to the present value of all of the future cash flows from that share. As we know, preferred stock has a fixed value and common stock does not. Investors predict and forecast the future values of stock using the dividends, especially if they are constant. FNF pays regular quarterly dividends to its investors. SECTION II. FCF METHOD – VALUATION Free cash flow represents the cash that a company is able to generate after the money it requires to maintain or expand its business. Free cash flow is important because it allows the company opportunities to pursue opportunities like investments and acqusitions that enhance shareholder value. Investors look at cash flow as the companies ability to generate cash or profits. Negative cash flow is not necessarily a negative thing. It could be a sign that the company is making investments and or acquistions for the future growth of the company. Free cash flow is also a useful tool in valuing a company. Valuation is a process of determining what something is worth at a specific point in time. The dividend valuation model is most useful when valuing a company, like FNF, that pays dividends with history that can be estimated. SECTION III. VALUATION USING MULTIPLES P/E ANALYSIS TAB P/E

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