| Due to the long-term accumulation of historical factors, the four domestic commercial banks has formed a large number of non-performing loans.It has not only been heavy burden to the Commercial Banks, but also has been the major problems to the economy. In the past 10 years, Financial Assets Management Companies (AMCs) has dealt with a large number of non-performing financial assets. Since the 1990s, the world's non-performing assets of the banking sector are forming the trend of restructuring. From this year, the subprime mortgage crisis is poised to get much worse.The systemic risk are shifting to the economic entities.It has formed a broad and profound impact even in today's changing world economy. So the AMCs still should exist and continue to be further developed. In the debt-to-equity swap of non-performing assets, the pricing is still in the individual discussions stage.There is no established pricing mechanism, which is seriously hampering the debt-to-equity swap of non-performing assets of financial management and disposal.By comparing a variety of valuation models, this paper chose the free cash flow discount model.This article analysed the YANBIAN SHIXIAN BAILU papermaking co.,Ltd for targeted research.By analyzing the company operations, financial position, competitive position and prospects for the development of the company, this article shows that the use of discounted cash flow method to determine the value of the debt-to-equity swap of non-performing assets is applicable.This article is divided into five parts. First of all is the introduction. From the four financial asset management companies set up in 1999 so far, the AMCs have formed a relatively matured pricing mechanism and external disposing mechanism,for the acquisition, management and disposal. However, the pricing of the debt-to-equity swap has not yet accepted the formation of the pricing mechanism. Need to find a reasonable and convenient way to exert the founction of the AMCS.The second part of the article is an theory overview about the value determine of non-performing assets. First, a brief description of different types of non-performing assets and pricing requirements has been given.Then it was followed by the real estate assessment and credit asset assessment. The main basis for the claims of assets is presented in three commonly used valuation methods. Finally, this article presented the discounted cash flow method that has been widely used in the enterprise value analysis.The third part of the article analysed the debt-to-equity swap to determine the value.From the analysis of the four c main characteristics of debt-to-equity swap of non-performing assets.This article presented that the use of discounted cash flow method for pricing analysis is adequent.The premise of the application, operation and processes are widely used in analysis.At last the factors about debt-to-equity swap that should be paid attention to was displayed.The fourth part of article is to use cash flow to the YANBIAN SHIXIAN that involved non-performing financial assets to determine equity value. First of all, from the macro-economic conditions, industry and the development of YANBIAN SHIXIAN, and then based on the three-level analysis to determine the prediction business data and trends. Revenue from sales is the starting point for determining the forecast period. According to the forecast business development trends this paper determined the discount rate, based on the final cash flow forecast in the based point model of free cash flow to determine the value of the debt-to-equity swap of non-performing assets.Conclusion, during the future of the national economy, non-performing financial assets may be great in a variety of forms, in addition to the real estate and debt, the debt-equity swap as a more mature debt restructuring means, It should have a larger market space. To truly understand the value of the equity value, we need to have a large number of book data ,at the same time, the need to have the greatest possible number of business data and market data. And in the macro-economic level, the enterprise market, the industry level, as well as their own profitability at different levels, the business of the financial and operating targets of the indicators detailed analysis in order to arrive at a reasonable basis for the calculation of the parameters, and eventually come to be convinced of the value of corporate equity analysis. Based on the discounted cash flow method in the article the use of YANBIAN SHIXIAN can be seen for this type of business to determine the type of financial stake in the value of non-performing assets. It can accurately determine the basic financial stake in the value of debt-to-equity swap. At the same time, we should be careful in the investment decision-making in over-reliance on abstract mathematical models as a result. The investment model is not accurate, relying on mathematical models from real market conditions and the assumption of an abstract historical data, which can only be a certain scope of investment as a reference for decision making, investment decisions can not be used as the basis for the final. |
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