Business, 11.11.2019 20:31 brendariobranco
The only difference between the discounted dividend and corporate valuation models is the expected cash flow stream. expected future dividends are the cash flow stream in the discounted dividend model and expected free cash flows are the cash flow stream in the corporate valuation model. both models use the same discount rate to calculate the present value of the cash flow stream.
the discounted dividend model is especially suited for valuing companies that are privately held.
the only difference between the discounted dividend and corporate valuation models is the discount rate used to calculate the present value of the cash flow stream. the discount rate used in the discounted dividend model is the firm's required rate of return on equity, while the discount rate used in the corporate valuation model is the firm's weighted average cost of capital. both models use the same expected cash flow stream in the discounting process.
there are actually two differences between the discounted dividend and corporate valuation models: the expected cash flow stream and the discount rate used in the models are different. the discounted dividend model calculates the firm's stock price as the present value of the expected future dividends at the firm's required rate of return on equity, while the corporate valuation model calculates the firm's stock price as the present value of the expected free cash flows at the firm's weighted average cost of equity.
Answers: 2
Business, 22.06.2019 01:30, AbyssAndre
Can you post a video on of the question that you need on
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Business, 22.06.2019 17:10, lerasteidl
To : of $25 up to 35 2 35 up to 45 5 45 up to 55 7 55 up to 65 20 65 up to 75 16 is$25 up to $35 ?
Answers: 1
Business, 22.06.2019 19:40, gakodir
Last year ann arbor corp had $155,000 of assets, $305,000 of sales, $20,000 of net income, and a debt-to-total-assets ratio of 37.5%. the new cfo believes a new computer program will enable it to reduce costs and thus raise net income to $33,000. assets, sales, and the debt ratio would not be affected. by how much would the cost reduction improve the roe? a. 11.51%b. 12.11%c. 12.75%d. 13.42%e. 14.09%
Answers: 3
Business, 22.06.2019 20:10, janayflowers042
Russell's is considering purchasing $697,400 of equipment for a four-year project. the equipment falls in the five-year macrs class with annual percentages of .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6, respectively. at the end of the project the equipment can be sold for an estimated $135,000. the required return is 13.2 percent and the tax rate is 23 percent. what is the amount of the aftertax salvage value of the equipment assuming no bonus depreciation is taken
Answers: 2
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