We arrogantly determined that discounted
cash flow didn't make any sense in valuing a company in this new world.
Such portfolio models facilitate a variety of analyses, including projection of aggregate expected
cash flows, calculation of a portfolio value, reserve development and analysis of reinsurance arrangements.
The decrease in
cash flow and investment return may result in disgruntled investors.
At the second stage, the determination of net future
cash flows calls for an estimate of the future cash inflows and outflows--undiscounted.
A more powerful approach is to link
cash flows to operating variables, which allows us to calculate stock valuations directly from an operating executive's point of view.
As diagram B shows, the best explanation is the present value mechanism based on the time value theory of money concept from economics, which asserts that
cash flows are more valuable when they occur more quickly, are larger and are more certain.
Dividends and other
cash flows (after withholding and other transfer taxes) from the operating companies to the holding company should exceed US$450 million annually over the next several years.
Jerrod Freund, director at PinnOak's lead banker, UBS, elaborates: "The biggest thing for a lender is the
cash flow and income statement.
Life insurance
cash flows have many qualities that make them ripe for packaging into marketable securities.
While Fitch believes healthy
cash flows are achievable once the price-ceilings roll off, the $400 million range may not be feasible until the 2008-2009 timeframe at best.
If judgments are too low and
cash flows turn out to be stronger, market values increase.
95, Statement of
Cash Flows, in November 1987, describes the primary purpose of the
cash flow statement as providing relevant information about an enterprise's cash receipts and payments during a particular period.
Thus, the amount of excess spread available for paying principal and interest to the NIMs is a function of Fitch's modeling assumptions, derivative
cash flows, and other structural features.
19, Reporting Changes in Financial Position, and requires a statement of
cash flows as part of a full set of financial statements for all business enterprises in place of the statement of changes in financial position.
95, Statement of
Cash Flows, specifies what
cash flow information companies must report and reduces diversity in reporting.