FINANCE

Assignment



Assignment: Dart Group, PLC

Introduction

The Dart Group is an aviation distribution and servicing organization. It specializes in the operations and maintenance of chartered and scheduled flights, especially to the exotic locations across the Europe. It also transports fresh products to wholesale and supermarkets all over the United Kingdom. The Dart Group has two major business operations, the Distribution and the Aviation. The Distribution business of the company, Fowler Welch-Coolchain, manages its operations from eight strategically important locations, offering a wide range of superior quality logistics solutions. The Aviation area of business operations carries 21 Boeing aircrafts of 737-700 category, which also includes 8 “Quick Change” aeroplanes, and 9 Boeing aircrafts of 757-200 category.

Requirement 1

Financial measure EBITDA is used to determine the organization's ability to meet its obligations. Also, financial analysts use EBITDA to determine the value of the business. The term EBITDA stands for Earning before Interest, Depreciation, Taxation and Amortization. It indicates the following: Gross income before deduction of its accrued interest, dividends, before taxes and before deduction of depreciation on its fixed assets and intangible assets. It can be used to determine the value of the enterprise or organization. For an accurate calculation of EBITDA need financial statements prepared under IFRS.

The companies, like Dart Group LLC, which are traded on the stock exchange have the value of the firm every day, or even every hour and know what the market "thinks" of decisions made ??at the firm or information supplied to it. For companies not traded on a stock exchange must have something similar. As the market sets the value (not to be traded), it should be defined based on projections of future flows. This exercise of maintain updated projections and calculating the value of the firm, equal to daily process (instantaneous perhaps) valuation that makes every day the market with firms traded on the exchange. Any analysis that helps decision making management must be forward and not backward (Khan, 1993, 221-239).

Valuation of the firm is an objective indicator of the outcome of its financial activities, and includes technological, organizational and financial analysis of both perspectives, the object being evaluated in the future, and it works now. Reliable assessment of the result of the firm is achieved by using multiple approaches to its assessment - income, cost-based, comparative.

Valuation of firms can be directed to determine the market price does not open, or a private company for the stock market, to determine the value of the property company as a whole, or the cost of proprietary systems for production and sales of any particular types of products, called business lines. Today the firm value can be expressed in various forms, be sure to take into account the assessor in the assessment of the firm (Brigham, 2010, pp. 123-134). Among these forms of valuation of firms are:

The market is a real cost - the price for which it is possible to implement within a reasonable time on the open market a specific ...