1 - 10 of 500

Explain.
Our basic principle of stock valuation is that the value of a share of stock is simply equal to the present value of all of the expected dividends on the stock. According to the dividend growth model, an asset that has no expected *cash*** flows** has a value of zero, so if investors are willing to purchase shares of stock in firms that pay no dividends, they evidently expect that the firms will begin paying dividends at some point in the future.
2. Explain why some bond investors are...

Premium Cash flow, Discounted cash flow, Investment 741 Words | 3 Pages

Open Document
***************************** SAMPLE PAGES FROM TUTORIAL GUIDE *****************************
Table of contents
SECTION 1: OVERVIEW DCF in theory and in practice Unlevered vs. levered DCF SECTION 2: MODELING THE DCF Modeling unlevered free *cash*** flows** Discounting to reflect stub year and mid-year adjustment Terminal value using growth in perpetuity approach Terminal value using exit multiple approach Calculating net debt Shares outstanding using the treasury stock method Modeling the weighted...

Premium Net present value, Fundamental analysis, Cash flow 1400 Words | 6 Pages

Open Document
In finance, the *discounted**cash*** flow** (DCF) analysis is a method of valuing a project, company or asset using the concepts of time value of money (Wikipedia, 2004). Three inputs are required to use the DCF, also called dividend-yield-plus-growth-rate approach, include: the current stock price, the current dividend, and the marginal investor’s expected dividend growth rate. The stock price and the dividend are east to obtain, but the expected growth rate is difficult to estimate (Ehrhardt & Brigham...

Premium Time value of money, Weighted average cost of capital, Cash flow 1052 Words | 5 Pages

Open Document
in Tables 4.10 and 4.11 do not show free *cash*** flow** and financing requirements. These are calculated in Table 1. Note that free

Premium Depreciation, Stock market, Cash flow statement 848 Words | 4 Pages

Open Document
Capital Asset Pricing Model (CAPM) Versus the *Discounted**Cash*** Flows** Method
Managerial Analysis/BUSN 602
Capital asset pricing model or CAPM is a financial model that measures the risk premium inherent in equity investments like common stocks while

Premium Internal rate of return, Discounted cash flow, Time value of money 1214 Words | 5 Pages

Open Document
Interco’s valuation as a whole. 2) As stated by the equity analysts, Interco is an over capitalized company with potential to grow, which makes an acquisition easy to finance. 3) Interco is also a ** cash** generative target for a potential acquirer as it generates approximately $0.10 of operating

Premium Net present value, Stock market, Stock 1184 Words | 5 Pages

Open Document
The role of *cash*** flow** information in discriminating between bankrupt and non-bankrupt companies remains a contentious issue. In a number of literature reviews on bankruptcy prediction (e.g. Zavgren, 1983; Jones, 1987; Neill et al. 1991; Watson, 1996) the common view is that

Premium Discounted cash flow, Corporate finance, Cash flow 1675 Words | 7 Pages

Open Document
income. We decided to evaluate this company based upon two methods: The *Discounted**Cash*** Flow** Method and the Comparable Companies Method.

Premium Generally Accepted Accounting Principles, Weighted average cost of capital, Discounted cash flow 1134 Words | 5 Pages

Open Document
Be able to explain and calculate the following capital budgeting methods:
a. Payback- the number of years that it is required to recover the project’s costs.
b. ** discounted** payback- discounts the

Premium Discounted cash flow, Internal rate of return, Capital budgeting 898 Words | 4 Pages

Open Document
value of the future *cash*** flows** forecasted from this stock (that is all dividends to
infinity). These are

Premium Finance, Rate of return, Net present value 802 Words | 4 Pages

Open Document