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Underwriting Guidelines and Policy Insurance Risk Management For
UNEP e-Learning Course on Insurance Risk Management for Renewable Energy Projects Module 3 – Underwriting Guidelines and Policy UNEP e-Learning Course on Risk Management Instruments for Renewable Energy Projects Module 3- Underwriting Guidelines and Policy Overview The training is organized in 6 modules and fits into a two day training schedule: Module Main Content Length of Module 1 – Climate Change Briefing, policy frameworks and 2 hours business impact 2 – Renewable Energy Technologies Renewable Energy technologies 3 hours and Risks policy, investment trends and risks 3 – Underwriting Guidelines and Underwriting information, 5 hours policy guidelines, risk evaluation, coverage evaluation 4 – Claims handling and policy Claims information, management, 2 hours reserving, legal and payment 5 – Intermediaries and networks Project development, information 1 hour and consultation 6 – Case study Renewable Energy case study, 3 hours risk assessment, impact and suitability of instruments Total 16 hours Page 1 Module 3- Underwriting Guidelines and Policy Module 3 Contents Objectives Introduction Lesson Core o Section 1 – Basic Underwriting Principles o Section 2 – Basic Insurance Product Offerings for RET o Section 3 – Basic Underwriting Processes and Guidelines o Section 4 – Risks and Barriers in RET Underwriting o Section 5 – Wind Power Considerations o Section 6 – Hydro Power Considerations o Section 7 – Solar Power Considerations o Section 8 – Biomass Power Considerations Lesson Review Further Reading & Related Links Examination Lesson Objectives Underwriting principles To provide an overview of the basic underwriting principles and guidelines that are considered in the context of insurance underwriting. Insurance availability To explain the main insurance offerings for RET. Specific consideration To describe specific considerations for the four primary RET: for RET wind, hydro, solar and biomass. -
Impact of Operating Profit and Capital Charge on Economic Value Added and Analysing Market Value Added
International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS) Volume VII, Issue IX, September 2018 | ISSN 2278-2540 Impact of Operating Profit and Capital Charge on Economic Value Added and Analysing Market Value Added Prof. Prayag Gokhale1, Ashwini Kamate2 1Assistant Professor Department of MBA, KLE Dr. MSSCET, Belgaum, Karnataka, India 2Student of MBA, Department of MBA, KLE Dr. MSSCET, Belgaum, Karnataka, India Abstract: - This study examines the Economic Value Added The approach of MVA quantifies the modification in the (EVA) and Market Value Added (MVA) which are two different market value of the firm’s equity capital with regard to equity approaches. EVA is a measure of firm’s profitable yield where it fund. This approach is only applicable to the firms which are implied the gap between operating profits after taxes and total listed in stock exchange hence it has limited application. If the cost of capital. Since WACC takes care of financial costs of all result is positive, the company has produced shareholder’s sources of investor’s funds in a corporate, it is spectacular that profits after taxes should be considered to quantify EVA. The wealth and management is capable of creating a new value for approach of MVA quantifies the modification in the market owners. MVA shows the firm owners that a capacity of the value of the firm’s equity capital with regard to equity fund. This management. In opposite if MVA is negative the capital consists of meaning, calculation and analysing of EVA and MVA invested is reducing due to this the company is not performing in a sugar company. -
Frs 102 Factsheet 6 Business Combinations
FRS 102 FACTSHEET 6 BUSINESS COMBINATIONS Business combinations A business combination is defined as the bringing together of separate entities or businesses into one reporting entity and may be structured in a number of ways for legal, taxation or other reasons. It may involve the purchase by an entity of the equity of another entity, the purchase of all the net assets of another entity, the assumption of the net liabilities of another entity, or the purchase of some of the net assets of another entity that together form one or more businesses. Section 19 Business Combinations and Goodwill sets out the requirements for business combinations. This section also includes the requirements for group reconstructions, however, this is not covered in this factsheet. This factsheet has been prepared to provide a high level overview to entities applying FRS 102 that undertake a business combination for the first time covering the following: • An outline of the purchase method • The separation of intangible assets from goodwill • Illustrative disclosures This factsheet has been prepared by FRC staff and provides high level guidance to entities applying FRS 102 that undertake a business combination for the first time. It should not be relied upon as a definitive statement on the application of the standard nor is it a substitute for reading the detailed requirements of FRS 102. FRS 102 Factsheet 6 1 December 2018 The Purchase Method Key FRS 102 references The purchase method is the required accounting treatment for the vast majority of business 19.6, 19.7 combinations1 and involves the following steps: 1) Identify an acquirer This is the entity which obtains control of other combining entities or businesses. -
Economic Value Added in Banks and Development Financial Institutions
Economic Value Added in Banks and Development Financial Institutions Ashok Thampy* and Rajiv Baheti** * Assistant Professor, Finance and Control Area, Indian Institute of Management Bangalore, Bannerghatta Road, Bangalore 560076 e-mail: [email protected] **Post Graduate Programme in Management, 2nd Year, Indian Institute of Management Bangalore, Bannerghatta Road, Bangalore 560076 e-mail: [email protected] Economic Value Added In Banks and Development Financial Institutions By Ashok Thampy Rajiv Baheti* January 2000 Please address all correspondence to: Prof. Ashok Thampy Assistant Professor Indian Institute of Management Bannerghatta Road Bangalore - 560 076 India Fax: (080) 6644050 * Second Year Student of the Post Graduate Programme at IIMB Copies of the Working Papers may be obtained from the FPM & Research Office Economic value added in banks and de\>elopmental financial institutions 1. INTRODUCTION Shareholder wealth maximization is now widely considered to be the main objective of the management of firms. Countless firms have affirmed their commitment to shareholder wealth and several managers have fallen for not giving adequate importance to it. Of the companies that have been most successful at increasing shareholder wealth as measured by consistent improvements in the return from the stocks, an increasingly common factor is their use of the concept of economic profit as a measure of performance. Economic profit or economic value added (EVA) has become a popular tool for managers to measure performance and for guiding investment decisions. Adherents of EVA can be found among several of the world's leading companies. Among banks, Loyds TSB of the UK has used the principle of economic profits to become one of the most valuable banks in the world. -
Valuation Issues to Consider for Large Block Minority Shareholder Redemptions Jeffrey S
Shareholder Forensic Analysis Insights Valuation Issues to Consider for Large Block Minority Shareholder Redemptions Jeffrey S. Burns and Nathan P. Novak The purpose of this discussion is to identify certain issues to consider when performing a valuation analysis for the purpose of a closely held company shareholder redemption. Specifically, the focus of this discussion is on certain qualitative and quantitative factors that commonly arise when a closely held company is going through the process of redeeming or buying out an ownership interest of a significantly large but noncontrolling shareholder. Several considerations that are unique to large block noncontrolling shareholder redemptions are discussed below. Additionally, an example is provided to illustrate how certain of the issues can occur and can be handled in a hypothetical, but realistic, situation. NTRODUCTION such as if a shareholder claims he or she is being I oppressed by the company and a court orders that A shareholder redemption, as that term is used company to redeem the oppressed shareholder’s throughout this discussion, occurs when a share- shares. holder (or otherwise owner) of a company sells his or her shares back to the company. The shares may This discussion focuses on the valuation issues be retired or may be distributed among the remain- that arise during a litigious shareholder redemp- ing shareholders. tion, such as the issues related to the dissociation of an owner. Further, there are certain issues that Ultimately, the result is the same either way: are unique to the redemption of a noncontrolling 1. There will be one less shareholder. shareholder that holds a significantly large block of the company stock. -
Residual Income Valuation
CHAPTER 5 RESIDUAL INCOME VALUATION LEARNING OUTCOMES After completing this chapter, you will be able to do the following : • Calculate and interpret residual income and related measures (e.g., economic value added and market value added). • Discuss the use of residual income models. • Calculate future values of residual income given current book value, earnings growth estimates, and an assumed dividend payout ratio. • Calculate the intrinsic value of a share of common stock using the residual income model. • Discuss the fundamental determinants or drivers of residual income. • Explain the relationship between residual income valuation and the justifi ed price - to - book ratio based on forecasted fundamentals. • Calculate and interpret the intrinsic value of a share of common stock using a single - stage (constant - growth) residual income model. • Calculate an implied growth rate in residual income given the market price - to - book ratio and an estimate of the required rate of return on equity. • Explain continuing residual income and list the common assumptions regarding continuing residual income. • Justify an estimate of continuing residual income at the forecast horizon given company and industry prospects. • Calculate and interpret the intrinsic value of a share of common stock using a multistage residual income model, given the required rate of return, forecasted earnings per share over a fi nite horizon, and forecasted continuing residual earnings. • Explain the relationship of the residual income model to the dividend discount and free cash fl ow to equity models. • Contrast the recognition of value in the residual income model to value recognition in other present value models. • Discuss the strengths and weaknesses of the residual income model. -
The Effect of Economic Value Added and Earning Per Share to Stocks Return (Panel Data Approachment)
International Journal of Business and Management Invention ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X www.ijbmi.org || Volume 5 Issue 2 || February. 2016 || PP-08-15 The Effect Of Economic Value Added And Earning Per Share To Stocks Return (Panel Data Approachment) 1Rafrini Amyulianthy, 2Elsa K.Ritonga 1,2Faculty of Economic and Business University of Pancasila, Indonesia ABSTRACT : The purpose of this study is to examine the effect of Economic Value Added (EVA) and Earning per Share (EPS) on stocks return. This study was taken because there are still differences between the research study with each other. This research was conducted using secondary data. Population in this research was a with time company incorporated in the index LQ 45 in Indonesian Stock Exchange period 2013-2014. Sampling technique using was purposive sampling. There are 21 companies to analyzed. This study using multiple regression with panel data. Results shows that Economic Value Added (EVA) have positive significant effect on Stock Return, while Earning Per Share (EPS) also have positive significant on Stock Return. Adjusted R Square value was 0,395091 means 39,50% can explained by the independent variable, while 60,50% are influenced by the other variables which have not been included in the research model. Keywords : Stocks Return, Economic Value Added, Earning Per Share, Multiple Regression, Panel Data I. INTRODUCTION In the era of free market economy, an increasingly competitive business world, so that requires companies to be able to adapt in order to avoid bankruptcy and ahead of the competition. One of the important information from the financial statements that are often used by investors as a major determinant of investment decisions is the company's performance. -
FR Y-9C, FR Y-9LP, FR Y-9SP, FR Y-9CS and FR Y-9ES; OMB No
Supporting Statement for Financial Statements for Bank Holding Companies (FR Y-9C, FR Y-9LP, FR Y-9SP, FR Y-9CS and FR Y-9ES; OMB No. 7100-0128) Summary The Board of Governors of the Federal Reserve System, under delegated authority from the Office of Management and Budget (OMB), proposes to revise, without extension,1 the following mandatory reports for implementation in March and June 2009. (1) the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C; OMB No. 7100-0128) and (2) the Parent Company Only Financial Statements for Small Bank Holding Companies (FR Y-9SP; OMB No. 7100-0128). This family of reports also contains the following mandatory reports, which are not being revised: (1) the Parent Company Only Financial Statements for Large Bank Holding Companies (FR Y-9LP; OMB No. 7100-0128), (2) the Financial Statements for Employee Stock Ownership Plan Bank Holding Companies (FR Y-9ES; OMB No. 7100-0128), and (3) the Supplement to the Consolidated Financial Statements for Bank Holding Companies (FR Y-9CS; OMB No. 7100-0128). Pursuant to the Bank Holding Company Act of 1956, as amended, the Federal Reserve requires bank holding companies (BHCs) to provide standardized financial statements to fulfill the Federal Reserve’s statutory obligation to supervise these organizations. BHCs file the FR Y-9C and FR Y-9LP quarterly, the FR Y-9SP semiannually, the FR Y-9ES annually, and the FR Y-9CS on a schedule that is determined when the supplement is used. The Federal Reserve proposes the following revisions to the FR Y-9C effective March 31, 2009: (1) new data items and revisions to existing data items on trading assets and liabilities, (2) new data items associated with the U.S. -
Leveraged Buyouts, and Mergers & Acquisitions
Chepakovich valuation model 1 Chepakovich valuation model The Chepakovich valuation model uses the discounted cash flow valuation approach. It was first developed by Alexander Chepakovich in 2000 and perfected in subsequent years. The model was originally designed for valuation of “growth stocks” (ordinary/common shares of companies experiencing high revenue growth rates) and is successfully applied to valuation of high-tech companies, even those that do not generate profit yet. At the same time, it is a general valuation model and can also be applied to no-growth or negative growth companies. In a limiting case, when there is no growth in revenues, the model yields similar (but not the same) valuation result as a regular discounted cash flow to equity model. The key distinguishing feature of the Chepakovich valuation model is separate forecasting of fixed (or quasi-fixed) and variable expenses for the valuated company. The model assumes that fixed expenses will only change at the rate of inflation or other predetermined rate of escalation, while variable expenses are set to be a fixed percentage of revenues (subject to efficiency improvement/degradation in the future – when this can be foreseen). This feature makes possible valuation of start-ups and other high-growth companies on a Example of future financial performance of a currently loss-making but fast-growing fundamental basis, i.e. with company determination of their intrinsic values. Such companies initially have high fixed costs (relative to revenues) and small or negative net income. However, high rate of revenue growth insures that gross profit (defined here as revenues minus variable expenses) will grow rapidly in proportion to fixed expenses. -
Unpacking the Myths and Mysteries of Chapter 14
Unpacking the Myths and Mysteries of Chapter 14 Christine Quigley ∙ Schiff Hardin LLP Nathan Brown ∙ Proskauer Rose LLP May 6, 2016 1. Code § 2701: The First of the Special Valuation Rules1 a. Generally, Code § 2701 applies any time an individual “transfers” an equity interest in a privately held entity to a “member of the transferor’s family,” if, immediately after such transfer, the transferor or one or more “applicable family members” holds an equity interest in the entity that is classified as an “applicable retained interest.”2 b. If Code § 2701 applies, the gift tax value of the transferred interest is determined under the so-called “subtraction method.”3 In its most simple form, the subtraction method determines the gift tax value of the transferred equity interest by subtracting the value of all equity interests in the entity held by the transferor (and applicable family members) immediately after the transfer from the aggregate value of all equity interests in the entity held by the transferor (and applicable family members) immediately before the transfer. c. If the retained equity interest is an applicable retained interest, its value for purposes of applying the subtraction method is zero (the “zero value rule”).4 The result of the zero value rule is that, for gift tax purposes, the transferor is treated as transferring not only the actual gifted interest, but all applicable retained interests as well. This can result is a significant, unexpected gift tax liability. d. Code § 2701 is riddled with defined terms that must be fully understood before one can properly determine whether Code § 2701 applies. -
Jurnal Politeknik Caltex Riau
Jurnal Akuntansi Keuangan dan Bisnis Vol. 11, No. 2, November 2018, 87-96 87 Jurnal Politeknik Caltex Riau http://jurnal.pcr.ac.id The Effect of Financial Performance and Company Size on The Indonesian Sharia Stocks Eva Nurlita1 dan Robiyanto Robiyanto2 1Universitas Kristen Satya Wacana, email: [email protected] 2 Universitas Kristen Satya Wacana, email: [email protected] Abstract There are new alternatives that measure performance based on value and are still rarely used specifically in stocks based on Islamic law. This study aims to find and obtain empirical evidence concerning the influence of Economic Value Added (EVA), Market Value Added (MVA), Financial Value Added (FVA) and the size of the company to the stock price of sharia companies listed in the Jakarta Islamic Index period 2014-2016. By using purposive sampling, obtained sample of 13 sharia stocks observed in annual period, hence obtained panel data as much as 39. Data analyzed by using multiple regression. The results showed that Market Value Added has a significant positive effect on stock prices. EVA, FVA, and firm size have no significant effect on stock prices. Keywords: Economic Value Added (EVA); Market Value Added (MVA); Financial Value Added (FVA); Jakarta Islamic Index (JII) 1. Introduction Capital market growth in Indonesia attracts companies to make the capital market as a source of working capital, business expansion, and product diversification. Companies prefer capital market as a means to obtain sources of funds in the development of the company. Many companies are interested for Initial Public Offering (IPO) on Indonesia Stock Exchange to sell the company’s ownership to the public. -
Finance in a Nutshell a More Comprehensive “Javier Estrada Delivers the Essential Concepts and Tools of Modern Finance Clearly and Concisely
0273675400_COVER 5/7/05 10:08 am Page 1 FINANCE About the author Javier Estrada holds an M.S. in Finance and a Ph.D. in Economics FINANCE both from the University of Illinois at Urbana-Champaign. He is FINANCE currently an associate professor at the IESE Business School in Barcelona, Spain; the co-editor of the Emerging Markets Review; IN A NUTSHELL and a wealth management advisor at Sports Global Consulting. He IN A NUTSHELL has published extensively in international journals, written many FINANCE cases for class discussion, and lectured throughout the world to This is a no-nonsense companion to working with the undergraduate students, graduate students, and executives. A no-nonsense companion to the tools of finance. tools and techniques of finance Sometimes even the best professionals have long forgotten some key IN A NUTSHELL IN A NUTSHELL financial concepts, and others may never have learned them properly in the first place. Some want to broaden the scope of their financial The author has prepared some useful tools and supporting data knowledge, and many more simply need a desktop companion for sets to help make Finance in a Nutshell a more comprehensive “Javier Estrada delivers the essential concepts and tools of modern finance clearly and concisely. Estrada avoids quick and practical help with the tools and techniques of finance. companion for those who wish to explore these concepts further. abstract symbolism and jargon, and instead relies on insightful, practical examples, making this the perfect book for A no-nonsense companion to the You can find them at: www.pearsoned.co.uk/estrada practitioners who seek an efficient and engaging learning experience.