Branson Valuation Essay

Branson Reeve's sixth grade year flew by, and it was not as terrible as he thought it would be. During the summer, I noticed he became very interested in his appearance and his choice of clothing. This spontaneous decision is in part to the compliments he has been receiving from girls. He is starting to create intimate and relational feelings, which I encourage as it is a normal behavior. In order to purchase more expensive and "cool" clothing, I give Branson Reeve the opportunity to earn extra cash by doing supplemental chores around the house. However, I have discovered that the more chores he has the easier he gets distracted and the more likely he is to leave them unfinished. As a result, I reduced his amount of work and created a more

Morris Mining Corporation owns and operates mining facilities that are located in the United States, and Canada. This company primarily distributes extracted ores and minerals to their customers. Recently, in January 2015, Morris Mining acquired the mining company King Co. Once the company has been acquired, Mining Morris plans to record the difference of the purchase price and identifiable net assets as goodwill. The identifiable assets and liabilities of King Co. are going to be recorded at fair value on Morris Mining 's books. There has been discussion as to how the company is going to report the fair value for the patent that is part of the assets they acquired from King Co. Rob, an audit manager on the Morris Mining engagement, and Gabriela, the audit senior, are trying to evaluate if the method of the fair value estimate it reasonable.

The difference in the share of railways in the USA and the EU is due to the geographical distances between cities in the USA and the EU. Railways cost less to operate and have fewer emissions when compared to trucking. Yet, the use of railways is limited for the following reasons: (i) building its infrastructure is very costly; (ii) the long lead time required for developing the infrastructure; (iii) consistent-high-volume of the freight traffic is needed for economic viability; and (iv) the need for trucks for the distribution to the final destinations. Trucks have many advantages over other modes of transportation, especially that they provide last mile delivery. Trucks, as compared to railways, ships, or planes have the most flexibility in reaching a destination, and the upfront

The Federal Motor Carrier Act in 1980 caused the deregulation. “The Act abolished the old regulatory system to (cut) barriers to new competition” (p13). New companies, mostly small and without assets, entered the industry, driving down rates and wages. Established companies faltered and unions disappeared. This is a good example of the race to the bottom. Within a few years, the industry adopted a new business model. Under this model, many port truck drivers became classified as independent contractors. This occurred because “deregulation provided an opportunity to cut costs by shifting liability to drivers, an opportunity which cargo shippers and trucking companies seized” (“The Big Rig”,

According to AJC.com (Atlanta News) the truck driving industry will increase by at least 5% by 2020. In May 2015, there were 1,678,280 heavy and tractor-trailer truck drivers in the United States. Their median annual wage was $40,260. North Dakota, Arkansas, Nebraska, Iowa, and Wyoming had the highest concentration of truck drivers in 2015.

Price & Fair Market Value Are the Same: Farm land appraisers determine the fair market value of a piece of property. This means that they estimate what price the land would most likely bring in a fair and competitive market, assuming both the buyer and seller act reasonably. However, farms do not always sell for their fair market value, because buyers and sellers bring other factors--such as emotion--to the transaction. For instance, a seller who grew up on a family farm might believe the property is

Trucks are important for the economy, but they can also be identified as walking death deliverers in California. These heavy vehicles can weigh over 80,000 pounds and can cause hazards with their dangerous cargo as well. Many trucks carry pharmaceutical products and lumber, which carry a

Refined oil is the number one product within the United States (Reed, 2010). Furthermore, the means to shipping oil around the country is rail (O’Malley, 2014). Thus, Warren Buffets purchase of the Burlington Northern Santa Fe Railroad company makes sense. This can be explained by the fact that according to Warren Buffett, the shipment of oil via rail is a cheaper, positive alternative to pipelines (O’Malley, 2014). Warren Buffett’s purchase of Burlington Northern Santa Fe Railroad shows that Mr. Buffett believes that as hauling via truck becomes more costly due to rising oil prices, a cheap rail system will be preferred (Foroohar, 2012). The reason that rail is a cheap means of shipment is simple, rail uses less fuel to travel. This is evident in the fact that a rail system can haul one ton of goods 500 miles on just one gallon of fuel (O’Malley, 2014). One would be hard pressed to find a trucking company that could boast the same. Thus, as fuel prices rise, rail would become more viable. Warren Buffett has personally been quoted stating this by mentioning that energy prices will rise within the United States, allowing his railroad venture to grow more over time (Foroohar, 2012). Furthermore, as pipelines remain controversial and a slow means of shipping oil, rail can solve the problem via expediting oil shipments around the country (O’Malley,

This means more traffic on highways, more people crowding on to trains and buses etc. Simple economic principles enable us to see why commuting will get more and more expensive in the future.

Well this is the last Module for the semester and I am very happy that I was able to make it through the whole semester. I look forward to using the information I have learn when writing all 15 modules. So, know I will discuss the last Module 15, which targets the company Family Dollar, which has started to become very popular, because at this store we are able to find everything you need and cheaper compared to the bigger stores like Wal-Mart and Target. So, let me discuss what the book discusses on Market Based Valuation. Because Family Dollar is considered to be a discount store which low and middle-income family are able to find reasonable prices, the funny thing is that even higher income families shop there too realizing the discount they may find themselves. Family Dollar has been able to earn an annual revenue for about $8 billion dollars. Even the revenues have been increasing for the last five years from twenty five percent to about sixty percent. Here we will learn the valuation techniques using market multiplies, not like the valuation techniques introduced in the early chapters. I know sometimes it's hard to understand all these different methods that have been described in the other chapters, but I have been reading it is making it easier to understand them. Again, like I mentioned earlier, I will try to explain what I understand from this chapter.

The fair value of an asset or liability can be derived by the following three level of characteristics listed under FAS 157. The first level financial instruments should be reflecting the quoted prices in active markets for identical assets. The second level is the quoted prices for similar assets or based on inputs observable from the marketplace. The last level is generally prices made based on model assumptions with no unobservable inputs (Laux, C & Leuz C 2009).

exceptionally high. On a broader scope, the transportation industry is vast and encompasses not only

Buyers who are involved with the business will not pay for the "know-how" or "good will" of a business that a buyer outside the business would consider purchasing. Generally, an inside sale (where the market consists of buyers involved with the business) will not have as high a purchase price as an outside sale (where the market consists of buyers not involved with the business). The term "fair value" is used in legislation and court decisions to indicate the value of business interests between owners of a business. The term "fair market value" is used to indicate the value of a business to those purchasing the business and not involved in the business. Fair value, the value between business owners, results in computation of an overall business value that is less than a presumed fair market value. A minority interest in a closely-held business will be highly devalued for lack of control by a market consisting of buyers not involved with the business, while a market consisting of buyers involved with the business might place a premium on an interest that when acquired would merge with an existing interest to become a majority interest.

But since the rise has been uncertain, it is difficult to plan for the rise. He further said that fuel accounts for about 20% of airlines operating costs. So a rise in fuel costs will directly affect the industry.

In this case price is described as how much money consumers spend on fair trade products. In definition fair trade means: to ensure stable trading conditions for producers in developing countries who are disadvantaged (Ozcaglar-Toulouse, Shiu & Shaw, 2006). Stable trading like a living wage and safe working conditions for disadvantaged farmers in developing countries will create a higher price than the same standard products produced by farmers in the advantaged countries.