Commodity Trading
Content
PROJECT PROPOSAL Valuation Of Firm For Financing
CMS BUSINESS SCHOOL Submitted to: Dr. BRR
By: Rituraj Deka 13MBA63230
Abstract: As commodities trading continues to globalize, many of the world’s biggest oil and gas and mining majors have set up commodity trading structures. KPMG International’s report titled Commodity trading companies - Centralizing trade as a critical success factor was recently developed based on the views of professionals from KPMG’s member firms worldwide who specialize in a range of global tax and advisory disciplines to help energy and natural resources
companies understand the substantial benefits and risk management issues involved in these complex operations. Objective: To understand realistically the pattern of fluctuations of price indices of Gold commodities Problem statement: To analyze and calculate the risk involved in advancing loans. Methodology: Standard and premise of value are popular alternatives in the valuation of a firm. The standard of value is the hypothetical conditions under which the business will be valued. The premise of value relates to the assumptions, such as assuming that the business will continue forever in its current form or that the value of the business lies in the proceeds from the sale of all of its assets minus the related. Standard of Value is the decision considering the Fair market value, the Investment value or intrinsic value. Financial analysis (including financial statements and ratios), Normalization of financial statements to identify the ability of the business to generate income also including Net Asset Value method. Capital Asset Pricing Model (CAPM), and Weighted average cost of capital (WACC). The CAPM method derives the discount rate by adding a risk premium to the risk-free rate and the WACC method determines the subject company’s actual cost of capital by calculating the weighted average of the company’s cost of debt and cost of equity.
Schedule: Completion of 1 method of valuation per week from the commencement of Internship. Submission for mentor’s revision will be done by 1st of September 2014. Final submission will be on or before 5th of September. References:
The Little Book of Valuation by Aswath Damodaran http://en.wikipedia.org/wiki/Valuation_%28finance%29
CMS BUSINESS SCHOOL Submitted to: Dr. BRR
By: Rituraj Deka 13MBA63230
Abstract: As commodities trading continues to globalize, many of the world’s biggest oil and gas and mining majors have set up commodity trading structures. KPMG International’s report titled Commodity trading companies - Centralizing trade as a critical success factor was recently developed based on the views of professionals from KPMG’s member firms worldwide who specialize in a range of global tax and advisory disciplines to help energy and natural resources
companies understand the substantial benefits and risk management issues involved in these complex operations. Objective: To understand realistically the pattern of fluctuations of price indices of Gold commodities Problem statement: To analyze and calculate the risk involved in advancing loans. Methodology: Standard and premise of value are popular alternatives in the valuation of a firm. The standard of value is the hypothetical conditions under which the business will be valued. The premise of value relates to the assumptions, such as assuming that the business will continue forever in its current form or that the value of the business lies in the proceeds from the sale of all of its assets minus the related. Standard of Value is the decision considering the Fair market value, the Investment value or intrinsic value. Financial analysis (including financial statements and ratios), Normalization of financial statements to identify the ability of the business to generate income also including Net Asset Value method. Capital Asset Pricing Model (CAPM), and Weighted average cost of capital (WACC). The CAPM method derives the discount rate by adding a risk premium to the risk-free rate and the WACC method determines the subject company’s actual cost of capital by calculating the weighted average of the company’s cost of debt and cost of equity.
Schedule: Completion of 1 method of valuation per week from the commencement of Internship. Submission for mentor’s revision will be done by 1st of September 2014. Final submission will be on or before 5th of September. References:
The Little Book of Valuation by Aswath Damodaran http://en.wikipedia.org/wiki/Valuation_%28finance%29
