Discounted Cash Flow by Matthew Roddan

When a company’s financials are scrutinized, metrics used to evaluate the same are important. According to Wall Street, a company’s cash flow is the best indicator for a company’s performance. As such, DCF or discounted cash flow analysis is used to determine a company’s worth by estimating future cash flows.

Projected cash flows (operating profit + depreciation + amortization of goodwill - capital expenses - cash taxes - alteration in working capital) are discounted to current value using company’s weighted average costs. In short, DCF is an effective and unparalleled tool for determining share value, which is important for investors.

Also, a few financial scandals only hiked the importance of DCF. With more concerns about reliability of earnings and calculation of P/E or cash flow determination, coming up with a DCF model calls for more efforts than merely dividing share price by income or sales. However, taking this effort ensures investors get a good idea of the key factors like share value, projection of future income or profits, growth ratio, etc. Besides, DCF can’t be manipulated through aggressive accounting practices easily.

While DCF is a very useful tool, it isn’t without shortcomings. It is a mechanical valuation tool that works akin to garbage in, garbage out saying. So, any minor change or change in assumptions could lead to major differences. But, investors should always crosscheck evaluations and allow considerable margin for such changes or errors, when taking decisions. Major investment decisions should not be taken purely relying on DCF calculations alone. What if a client backs off from a contract, or what if interest rates hike unexpectedly or even a competitor cropping up with crushing prices and the firm losing most business? Remember, when expectations change, calculations or derivations based on the assumptions will change along with it! Do you know even reputed investor Warren Buffet and other financial experts and portfolio managers rely on DCF?

Discounting cash flow is tricky and it is important to remember that assuming or predicting future estimates could be meaningful or meaningless depending on the estimates taken and how reasonable they are. Besides, numbers aren’t static and keep changing with changing trends. As for investors, evaluating stock pricing is very important and DCF is a handy aid for calculating the same, says Matthew Roddan of Project Ninety Nine. Do you know stock market speculations are based on DCF? Whether it is acquiring a business, or a property, or investing on stock, DCF helps with speculating approximately.

Matthew Roddan

Is Money Important? By Matthew Roddan

We’ve all heard the saying “Money can’t buy happiness” several times. Funny how most of our problems are related to money or created by money! Can we really ignore money? Money is a means of exchange and a very essential commodity. Without money there’s nothing one can do today – home, education, food, medical assistance and what not, everything boils down to money.

Right from the time a life is brought into the earth, everything revolves around money. While money is not everything, is does play a key role in our lives and one can never do without it. That aside, what about businesses? Can businesses be commenced or run without money? There’s always a pursuit for money and there’s no denying the fact that enough money can bring one a secured feeling. That’s one reason why many prefer starting their own business, says Matthew Roddan of Project Ninety Nine.

With tumbling economy, many lost their jobs and were left in lurch and succumbed to not being able to manage the change or uncertainty. Even established individuals who had a career for years couldn’t take the hit and look for new opportunities, if at all there were any! By having a business, one can control their destiny and not leave it at the mercy of others – this is one reason that pushes many to start their own business.

It is one reason why many who don’t have the resources for starting a business, look for potential investors or crowd funding to start their dream and take reigns of their future. When potential entrepreneurs have profitable proposals, investors or sponsors are interested in taking the plunge, provided they’re briefed on the possibilities adequately. Matthew Roddanof Project Ninety Nine says that’s one reason why project proposals should be prepared along with financials and statistics to show potential investors. Being prepared is the key to getting funding and Project Ninety Nine brings potential entrepreneurs and investors to discuss on options and take up profitable and potential ventures.

Unlike other sites, this is a real platform where investors discuss and share knowledge and projects that catch their attention are given a thought, analyzed and the site intervenes to come up with a mutually beneficial proposal. In other words, the site stays though the ride and ensures both parties’ interests are taken care of. Handling finances the right way ensures one gets to live comfortably, secure one’s future and what not. Money is a means to an end – one’s security, which influences one’s happiness, freedom and quality of life.

Matthew Roddan

Discounted Cash Flow ~ An Overview

DCF short for discounted cash flow analysis is a way to evaluate a company, project or assets. Cash flows for the future are assumed and discounted considering cost of capital to get the current values. Sum of future cash flows outgoing or incoming is net present value (NPV) that’s taken as price or value of cash flows. Discounted cash flow analysis is used to determine the worth of an investment in simplified terms. It is used in real estate development, investment finance, patent evaluation and corporate financial management.

As Matthew Roddan from Project Ninety Nine says, understanding the probability of risk and profits is very important in an investment decision. Investment decisions are made for profits and understanding what one can expect is very important to determine the suitability of an investment. Exponential discounting is the most common method deployed for discounting, to evaluate future cash flows answering the question – what would be the returns for an investment at a specific rate of return, as against cash flow expected in the future? Hyperbolic discounting is another method, though not deployed widely. Discount rate is the right weighted average cost of capital (WACC) and it reflects cash flow risks.

Discounted cash flow analysis is important for any investor to determine if or not an investment decision is suitable. Let’s look at it this way – consider the investment as a business or a company. DCF is a way to determine a company worth currently, based on calculations for the future. Though this is a useful method, it does have hiccups. Being a mechanical evaluation tool, it is bond by a principle and even simple changes in one value could result in major changes in value. So, instead of determining values for infinity a cap is used – say 10 years. This way, estimation becomes measurable.

Besides, Discounted Cash Flow is a method that uses intrinsic valuation for companies that have predictable flow of cash. It is used for companies that have been around for a while, though it is also used for IT companies that are expected to grow swiftly. This means, when a start-up or developing firm is evaluated, the results could go right or horribly wrong! As an investor, you must be able to weigh your options and prepare for both, says Matthew Roddan of Project Ninety Nine. This way or that, evaluating an investment is important for any investor and determining the right investments is done based on calculations that are probabilities and possibilities, not a definitive. The calculated risk should be something you would be able to manage, irrespective of whether it turns our favorable or not! 

Dubai International Financial Centre By Matthew Roddan

The Dubai International Financial Centre also called DIFC is located in Emirate of Dubai and is a federal financial free zone in United Arab Emirates. Established in 2004 through a decree, DIFC is a sprawling 110 acres. Legal systems and courts are different from UAE, with a jurisdiction over commercial, corporate, employment, trusts, civil and securities law affairs. The main aim of DIFC is to offer a platform for financial and business institutions to enter in or out of emerging marks in the region and to create an ambiance for progress, growth and economic development in UAE by offering adequate infrastructure and legal backing on par with international standards.

Under the constitution of UAE, DIFC is independent judicially with commercial and civil laws different from that of UAE. DIFC laws are in English to avoid ambiguity and DIFC has courts and judges from jurisdictions with common law like Singapore, England and Hong Kong. Though DIFC has independent laws, the immigration rules and criminal law is the same as UAE. DIFC-LCIA Arbitration Centre is modeled after London Court of International Arbitration. DIFC Authority is the main governing body for DIFC and DFSA (Dubai Financial Services Authority) regulate financial services in DIFC, though it is different from UAE federal Securities and Commodities Authority that governs outside of DIFC.

Financial institutions can submit applications for a license and they’re benefitted from the 0% tax for income and profits, no limitations on Forex or profit/capital repatriation, 100% foreign ownership, business continuity and operational support amenities. Dubai International Financial Exchange is a privately owned financial exchange for DIFC and was listed as DIFX and rebranded as NASDAQ Dubai in 2008. DFSA regulates NASDAQ Dubai.

Dubai International Financial Centre Complex houses a hotel, Ritz Carlton that was opened in 2011. Dubai International Financial Centre also houses art galleries, restaurants and an array of outlets for shopping extravaganza. The Dubai shopping season has garnered acclaim worldwide and the number of tourists visiting during this season shoots through the sky. Many entrepreneurs would like to have a business established in DIFC and it isn’t surprising considering the perks and profits businesses get here. Matthew Roddan of Project Ninety Nine would recommend suitable and innovative project launch here, when an able leader is helming it.

The location of a business is very important and DIFC is one location businesses should consider. Not just for expansions, even new launches that are good would sure thrive and flourish here. There’s a reason why it is called Financial Centre and you must try it, to believe it.

By Matthew Roddan

What’s a Medium Term Note?

Medium-term note or MTN is when a debt note maturity period is 5 – 10 years, though technically the repayment duration or maturity period could be less than a year to a 100 years! These debt notes can be issued on floating or fixed coupon basis. Floating rate MTNs are either simple where the coupon is aligned

Euribor +/- basis points or it could be notes with complex structure and linked to indices, swap treasuries, etc.  If they’re issued to investors who aren’t residents of the US, they’re termed "Euro Medium Term Notes". Issuing MTNs to US-based investors calls for a US MTN program.

MTNs can come with fixed maturity date or come with put options, embedded call wherein MTNs could be redeemed per pre-accepted terms or speculations. MTN is usually issued for unsecured investment debts, with fixed rates, though it offers flexibility to both the issuer and investor when it comes to documentation and structure. While many use bank instruments for PPP and have an idea of how MTNs work, many don’t know how it really works! It is funny how they’re rising in popularity and many deploy it for different purposes, without knowing how these instruments work or what it really is! Matthew Roddan of Project Ninety Nine explains MTNs are a great way to get into PPP, especially since not many have the funds required to invest in PPP from their resources. Since PPP is gaining exposure and many would like to know if or not PPPs are what stuffs that make a mythical legend, let’s understand MTNs better.

According to Matthew Roddan, many aspire to invest in PPP but end up being unable to do so by trusting wrong people (brokers) or because they don’t have enough resources. The former is truer and why many think PPPs don’t exist. So, let’s understand MTNs better and how they can be used for PPP. MTNs are instruments of debt issued by banks and are sold to investors with a good face value, annual interest rate and maturity date. So, if you hold a note from Bank of America that’s worth 100 million, with interest rate of 7% each year, you will get 7 million till the instrument matures, after which you can cash it for its worth!

While MTNs are very similar to debt notes, it is more popular because of its price, flexibility, resale potential and option to be bought at a discount instead of its face value. According to Matthew Roddan from Project Ninety Nine, MTNs are available for more than fifty years and can effectively compete with any bank instrument. Since they were available for discounted rate, it became popular after “trading bank instruments” gained notoriety in the secondary market. PPP reign began soon after and Internet has made it even more popular and widely available. If you have an interest in PPP, MTNs Project Ninety Nine are your go-to option.

By Matthew Roddan

The Top 20 Practical Software Testing Tips

I trust all analyzers will read these product testing great practices. Perused all focuses deliberately and attempt to actualize them in your normal QA exercises. This is the thing that I anticipate from this article; If you don't see any QA practice, request more elucidation in remarks beneath. When its all said and done, you will realize all these testing practices by experience. At the same time then why not attempt to realize all these things before committing any error?

Here are a portion of the best testing practices I gained for a fact:

1) Learn to dissect your outcomes altogether. Don't disregard the outcome. The last test outcome may be "pass" or "fall flat" however investigating the main driver of "fizzle" will lead you to the arrangement of the issue. Analyzers will be regarded if they not log the bugs additionally give arrangements.

2) Learn to amplify the QA scope each time you test any application. In spite of the fact that 100 percent test scope may not be conceivable still you can simply attempt to reach close it.

3) To guarantee most extreme scope break your application under test (AUT) into littler useful modules. Compose experiments on such individual unit modules. Likewise if conceivable break these modules into littler parts.

E.g: Lets expect you have separated your site application in modules and 'tolerating client data' is one of the modules. You can break this 'Client data' screen into littler parts for composing experiments: Parts like UI testing, security testing, practical testing of the 'Client data' structure and so on. Apply all structure field sort and size tests, negative and acceptance tests on info fields and compose all such experiments for most extreme scope.

4) While composing experiments, compose experiments for planned usefulness first i.e. for substantial conditions as indicated by necessities. At that point compose some for invalid conditions.software testing tester  This will cover expected also unforeseen conduct of use under investigation.

5) Think positive. Begin testing the application by mean of discovering bugs/lapses. Don't think previously that there won't be any bugs in the application. On the off chance that you test the application by plan of discovering bugs you will certainly succeed to discover those unobtrusive bugs too.

6) Write your experiments in necessity investigation and outline stage itself. Thusly you can guarantee all the necessities are testable.

7) Make your experiments accessible to designers preceding coding. Don't keep your experiments with you holding up to get last application discharge for testing, feeling that you can log more bugs. Let designers investigate your experiments altogether to create quality application. This will likewise spare the re-work time.

8 ) If conceivable recognize and gathering your experiments for relapse testing. This will guarantee snappy and viable manual relapse testing.

9) Applications obliging discriminating reaction time ought to be altogether tried for execution. Execution testing is the basic piece of numerous applications. In manual testing this is for the most part overlooked part by analyzers because of absence of obliged execution testing huge information volume. Figure out approaches to check your application for execution. If unrealistic to make test information physically then compose some essential scripts to make test information for execution test or approach designers to compose one for you.

10) Programmers ought not test their own particular code. As examined in our past post, fundamental unit testing of created application ought to be sufficient for designers to discharge the application for analyzers. In any case you ought not constrain designers to discharge the item for testing. Give them a chance to take as much time as required. Everybody from lead to trough know when the module/upgrade is discharged for testing and they can evaluate the testing time as needs be. This is an average circumstance in spry undertaking environment.

11) Go past prerequisite testing. Test application for what it shouldn't do.

12) While doing relapse testing utilization past bug chart (Bug diagram - number of bugs found against time for diverse modules). This module-wise bug chart can be valuable to anticipate the most likely bug piece of the application.

13) Note down the new terms, ideas you learn while testing. Keep a content document open while testing an application. Note down the testing advancement, perceptions in it. Utilize these notepad perceptions while planning last test discharge report. This great propensity will help you to give the complete unambiguous test report and discharge subtle elements.

14) Many times analyzers or designers roll out improvements in code base for application under test. This is obliged venture being developed or testing environment to maintain a strategic distance from execution of live exchange preparing like in saving money ventures. Note down all such code changes accomplished for testing reason and at the time of last discharge verify you have expelled all these progressions from last customer side arrangement document assets.

15) Keep designers far from test environment. This is obliged venture to recognize any setup changes lost in discharge or arrangement report. A few times engineers do some framework or application setup changes however neglect to specify those in sending steps. On the off chance that engineers don't have admittance to testing environment they won't do any such changes inadvertently on test environment and these missing things can be caught at the correct spot.

16) It's a decent practice to include analyzers right from programming prerequisite and outline stage. These way analyzers can get learning of use reliability bringing about nitty gritty test scope. On the off chance that you are not being solicited to be part from this improvement cycle then make appeal to your lead or director to include your testing group in all choice making methods or gatherings.

17) Testing groups ought to impart best testing practices, involvement with different groups in their association.

18) Increase your discussion with designers to know all the more about the item. At whatever point conceivable make up close and personal correspondence for determining debate rapidly and to dodge any mistaken assumptions. Be that as it may likewise when you comprehend the prerequisite or resolve any question - make a point to impart the same over composed correspondence routes like messages. Don't keep anything verbal.

19) Don't use up time to do high need testing undertakings. Organize your testing work from high to low need and arrangement your work likewise. Investigate all related dangers to organize your work.

20) Write clear, unmistakable, unambiguous bug report. Don't just give the bug manifestations additionally give the impact of the bug and all conceivable arrangements.

Role Of QA Software Testing In The Software Life Cycle

As whatever other business speculation, quality certification is implied for bringing worth. The principle reason for QA programming testing is to make the product transform more proficient while guaranteeing that the finished item fits client's requirements and they don't have any issue. What it truly means is it forestalls calendar crawls and planning issues; guaranteeing effective revelation and evacuation of deformities before the item achieves the end clients. In short you can say that it improves the product procedure and subsequently improving the last item too. It guarantees the making of the product methodology does not have any obstructions, so that later on it doesn't turn into an enormous issue when the item arrives at in the hand of extreme clients.

Keeping in mind the end goal to be compelling, Quality affirmation exercises ought to experience each stage in the product life cycle. For every occasion in the product life cycle, there ought to be one or more QA backing for concentrating on guaranteeing the nature of the methodology. Here are a few exercises worth saying: Software testing

Undertaking arrangement survey - Before you begin contributing time, cash and assets into the task, its key to check whether the arrangement has secured everything, as little thing matter a considerable measure and may cause a great deal of issue later on. Everything must be arranged and executed so as to work productively. It is achievable regarding course of events and assets, or even basic, on the off chance that it is finished.

Necessity audit - Once the necessities are composed however before more assets are occupied with making an interpretation of them into outline and code. It is exceptionally possible to survey them for accuracy, fulfillment, testing and so on and fix the issue if there is any still on paper. On the off chance that the issue is not recognized heretofore and not managed appropriately they can be a colossal issue later on, which will be hard to fix. Necessity survey is critical, as everything that is required is examined; in the event that you don't have something the procedure will get hampered.

Prequality status assessment - once you have executed your test, deformities were discovered, now is the right time to choose what to do next; to discharge or not to discharge. An investigation of utilization's quality level regarding the effect of the deformities found can help to settle on a judicious choice in view of clear information acquired through quality certification.

Having quality affirmation exercises for all phases of the product life cycle can spare you a great deal of cash and time. Discovering an issue in prerequisites can cost ten or more times less expensive to altering the same issue when found in testing. It is ideal to tackle an issue in paper than to settle it physically.

Article Source: http://EzineArticles.com/8526308

Hitachi Magic Wand Massager and its Benefits

Hitachi magic wand vibrator, also known as the Hitachi magic wand massager is a device that has been appreciated by a number of people around the world. A large mass of people have been buying these vibrators for the past 30 years. There are a number of advantages associated with the Hitachi magic wand vibrator.

The price is not exorbitant and once you invest in it, you can use the device for at least 6-7 years. Proper handling further lengthens the life of the device

The magic wand massager or Hitachi magic wand vibrator helps soothes the body muscles and eliminates pains in the back, neck and the shoulders. The vibrations cause the regeneration of dead tissues and also stimulate the growth of body tissues.

The vibration speed can be adjusted to a low speed of 5,000 rpm and a high speed of 6,000 rpm

The device is easy to use and can be used on body parts that are hard to reach. The long handle and the flexible head reach those body parts that are not easily accessible to hands. The head is 2.5 inches in diameter and the handle is 9 inches long.

The magic wand vibrator is widely used as a sex toy. When the head is placed against the genitals and the erogenous zones in the human body, the vibration causes stimulation of sensitive tissues thus sexually arousing a person. Women enjoy increased and more orgasms during sexual intercourse while men enjoy elongated erection periods. The vibrator has enhanced effects in women and clitoral stimulation in them.

Old people can use this device to decrease the pain intensity in the concerned body parts. The use of the vibrator against the body parts improves blood circulation because of the vibrations produced by the device.

The magic wand vibrators are easily available in the stores and can also be ordered online on various sites on the internet.

These vibrators are extremely portable and can be carried around without much difficulty.

Hitachi magic wand vibrators have been on the block for a long time now and the sales of these vibrators have doubled in the last 2 years. The vibrator is being used by people of all ages as per their requirements. The massager saves you the time of going to a masseur and getting a massage every weekend. You can sit back and use the massager on your own.

There are various attachments that can be used with the magic wand vibrator. G-spotter and the wonder wand attachments are the two most popular attachments that can be used in conjunction with the device. The cord of the device is as long as 6 feet and hence can be easily plugged in to a wall socket.

All in all the Hitachi magic wand vibrator forms a perfect product for people who are looking to get rid of body pains that haunt them often and people who are looking to enhance arousal and genital sensitivity.