Valuation pricing

There is a general relationship between metal price and terrestrial concentration. Metals present at relatively high concentrations, in the earth s cmst, such as iron and aluminum, are the least expensive rare metals such as gold and platinum are the most valuable. This situation has existed for gold and silver valuation for centuries. The amount of silver in the earth s cmst is approximately 20 times that of gold, and the historical price ratio for gold and silver varied between 10 and 16 for over 3000 years. Since 1970 that price ratio has been strongly affected by market forces and investor speculation. 

Pros and Cons of Inventory Valuation In the standard-price method of inventoiy valuation, all materials are taken out at the same... 

Taxe,/. tax, duty set price, rate taxi(cab). taxieren, v.t. value, appraise assess tax. Taxierung, /. valuation assessment taxation. 

According to J. M. Griffin and H. B. Steele (1986), external costs exist when the private calculation of costs differs from society s valuation of costs. Pollution represents an external cost because damages associated with it are borne by society as a whole, not just by the users of a particular fuel. Pollution causes external costs to the extent that the damages inflicted by the pollutant are not incorporated into the price of the fuel associated with the damages. External costs can be caused by air pollution, water pollution, toxic wastes, or any other damage to the environment not included in market prices for goods. 

Contingent Valuation Market Analysis Hedonic Pricing... 

The revealed preference method is an indirect approach that is used in order to monetize use values. This method observes the real choice between money and the environmental goods. Methods often include observations of consumers or producers behaviour or actions, such as the hedonic price method and the production function method. The hedonic price method determines values from actual market transactions. These transactions are used to see how the price of a market commodity varies when a related environmental good changes, such as the effects of noise or air pollution on house prices. The production function method is used to estimate the value of the environmental effects on production. This method is suitable when consumption or production of a private good is affected by the environmental good. An example is the valuation of ground-level ozone levels by valuing the impact on the production of wheat or timber, which has market prices. The problem with the revealed preference method is that it does not contain all the individuals values that affect the WTP. 

Lobato s work19 makes at least four contributions. First, it seeks to quantify the demand for pharmaceuticals and argues that those variables that are employed in an attempt to approximate physical consumption, such as the number of prescriptions or packages, are not useful because they sum heterogeneous units. Monetary valuation presents the problem (considered below) of what price indexes are to be applied as deflators when studying the evolution of demand and expenditure over time. 

Questions five and six address the actual identification, quantification and valuation of resources and costs. Resources previously identified as being relevant to the analysis have to be collected, measured and reported in appropriate units. For example, if blood tests are determined to be a resource that is important to the analysis, the actual number of each specific test performed must be recorded (e.g. five CBCs). Because of differing treatment regimens across regions or countries, it is extremely important that there is full disclosure of each resource identified, along with the frequency of use. Such resource dictionaries allow the person critically evaluating the analysis to determine whether the treatment patterns in the analysis accurately reflect treatment patterns in their area. In addition, the unit cost/price for each resource should be provided, along with the source of each value. The provision of unit prices/costs allows the reader to determine whether the relative costs shown in the analysis are similar to those foimd in his or her area. 

Under ordinary circumstances, inventories are priced (valued) at some form of cost. The problem in valuating inventory lies in determining what costs are to be identified with inventories in a given situation (Nickerson, 1979). 

Figure 3 presents the effect of feed price on ethylene production costs in a billion lb/yr European plant for naphtha, light gas oil, and heavy gas oil feedstocks based on premium by-product valuations. 

With these types of increases in production costs arising from higher NGL prices, the heavier feedstocks would become much more competitive at the existing price valuations for U.S. naphtha, heavy gas oil, and by-products. Note from Figure 6 that if propane goes to 1.4 /lb the ethylene production cost would go to 3.3 /lb, whereas the cost from 1.1 /lb heavy gas oil will be slightly less at 3-3.1 /lb, and the cost from 1.6 /lb naphtha would be about 3.4 /lb. 

Figure 6 shows that with the present level of premium valuation for by-products, a 1.1 /lb naphtha price would result in this feedstock having an advantage over ethane, propane or butane at 1 /lb. The cost for naphtha-based ethylene in this case would be only 1.94 /lb vs. 2.04, 2.36, and 2.47 /lb from n-butane, propane, and ethane, respectively. The breakeven prices for the light feedstocks that would correspond to the 1.1 /lb naphtha price would be 0.6, 0.82, and 0.95 /lb for ethane, pro-... 

With imported naphtha at, say 1.1 /lb and aromatics at current values, ethylene cost is 1.94 /lb. However, with finished aromatics valued at 5 /gal over the current base values, production cost drops to 1.59 /lb. The breakeven curves for naphtha vs. ethane, propane, and n-butane are given in Figures 8, 9, and 10. These assume premium byproducts, with aromatics valued above current levels, but do not include the effect of increased propylene and butylene valuations that would further accentuate the picture. With 1.1 /lb naphtha and aromatics at 5 /gal above current prices, the breakeven prices for ethane, propane, and n-butane are 0.33, 0.7, and 0.83 /lb, respectively. Such prices are... 

The many factors involved in the ethylene production economics are interrelated in a complex manner. The more important variables relate to feedstock types and prices, by-product volumes and valuations, plant size, and severity of operation. 

Currently in the United States, ethylene cost is lower via production from the light feedstocks regardless of the type of by-product valuation applicable. Of these, n-butane appears most interesting if premium prices for by-products can be applied. Ethane is best for limited by-product outlets. 

The import tariffs associated with the product flows between sites and markets are calculated in equation (3.5). The sum of transfer price and transportation costs is used to value products for tariff calculation. While in reality only the transportation costs to the border of the country are included in the product valuation for tariff purposes, this assumption was made to simplify the calculation.34... 

Equation (3.47) calculates the tariffs that have to be paid for import of raw materials. Duty drawbacks are considered by charging tariffs only for raw materials required for production of intermediate (second line) and finished goods (first line) that are not re-exported. The amount of intermediates not re-exported is adjusted for those intermediates that are transformed into goods subsequently re-exported at the same site. The formulation rests on the assumption that only one raw material source is used per site and that if a required intermediate is available locally the local source is used. Prices are converted from the currency used by the raw material supplier to the currency of the consuming site. Same as with the valuation of finished goods for tariff calculation the full transport costs are included in the tariff value of the raw materials and intermediates. Import tariffs for intermediates imported from another site are calculated in equation (3.48). The formulation differs from the one for raw materials because the source of the intermediates is not predetermined and the transfer price does not contain transportation costs. The net volumes of the intermediates which are not re-exported are calculated by subtracting the quantities contained in exported products from the total quantity imported. A non-negativity constraint sets the value to 0 if the respective intermediate is not imported from site s. ... 

One of the most contentious issues in business development is valuation. In truth there is no method which will provide a correct value. Value can only be accurately gauged when an asset is realized. Between the invention of an idea for a product or company and the eventual sale, no matter what method is chosen to act as a surrogate for the real value, intangible elements will remain and confound the accuracy of any valuation. Even when an asset is sold the price paid may not match its expected value. 

This story demonstrates the difficulties of valuation in this sort of situation. It is extremely hard to achieve where there is no comparator product, no existing treatment which can show the extent of the opportunity and so also no precedent for pricing. When there is little in the way of solid fact on which to base... 

The way to estimate strategic value in the financial sense, in other words the premium paid beyond the enterprise value, is probably the valuation issue which is least amenable to any form of method or systematic analysis. Although previous transactions from external benchmarking or from the company s own experience may give some kind of lead, even if there is true comparability between the benchmark and the valuation subject, differences in market conditions from one day to the next will often have major influences on the price of an asset. The acquisition of Hexal by Novartis Sandoz generic division in 2006 was widely criticized at the time as being too costly, yet immediately thereafter Teva bought Ivax to re-establish their market position... 

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