question archive QUESTIONS 1)Why can we not calculate the required return (Ke)from the Gordon- Shapiro model(p0= DIV0(1+g)/(ke-g) instead of using the CAPM ?As we know the current dividend (Div0)and the current share price(p0),we can obtain the growth rate of the dividend from the formular g=ROE(1-p)/(1-ROE(1-p),p being the payout
Subject:ManagementPrice: Bought3
QUESTIONS
1)Why can we not calculate the required return (Ke)from the Gordon- Shapiro
model(p0= DIV0(1+g)/(ke-g) instead of using the CAPM ?As we know
the current dividend (Div0)and the current share price(p0),we can obtain the growth rate of the dividend from the formular g=ROE(1-p)/(1-ROE(1-p),p being the payout.
2) What is the influence of auto portfolio in the quotation of the shares?
3)Why do as pit?
4) The national company responsible for the company where I work has recently published a document stating that levered beta of the sector of energy of transportation is 0.471870073(yes , 9 decimals).They obtain this number by considering the betas in the sector ,ranging -0.24 and 1.16.what is the point of being so precise with the betas ?does it make any sense to apply the same beta to all companies in a sector?
5)What is the Capital Cash Flow? Is it the same with Free Cash Flow?
ASSIGNMENT #2
1) Are there any consequences between the main authors in finance regarding the market risk premium?
2) How can we calculate companies cost of capital in emerging nations, especially
when there is no state bond which we could take as a reference?
3) How can an industrial company inflate the value of its inventory so as to reduce net income and the taxes it has to pay that year?
4) According to the valuation method based on tax shields, the value of the company (vI) is the value of the unleveraged company (Vu) plus the value of the tax shields (VTS). So does the value of the company increase if I a call my bank and tell them to charge me double the interest?
5) I cannot seem to start valuation .in order to calculate E+D=VA(FCF;WACC) I need the WACC and in order to calculate the WACC I need D and E .where should I start?