Introduction to Corporate Finance
5: Valuing Shares example BHP Billiton, a global mining company with its primary origins in Australia, announced in mid-2012 tha ...
PARt 2: VALUAtIoN, RISk ANd REtURN 5-2f HoW to EStIMAtE GRoWtH By now, it should be apparent that a central component in many sh ...
5: Valuing Shares seen considerable growth in the number of young, high-growth companies in Australia. Companies that are in the ...
PARt 2: VALUAtIoN, RISk ANd REtURN 5-3 tHE FREE CASH FLoW APPRoACH to oRdINARY SHARE VALUAtIoN One way to deal with the valuatio ...
5: Valuing Shares But what do we mean by ‘an appropriate discount rate’? This is a subtle issue that we discuss in much greater ...
PARt 2: VALUAtIoN, RISk ANd REtURN equals the total value of the company’s shares. Simply divide this total by the number of sha ...
5: Valuing Shares have several alternative approaches at their disposal for estimating the value of shares. Not all of these met ...
PARt 2: VALUAtIoN, RISk ANd REtURN the company’s book value, meaning the value of the company’s equity as shown on its balance s ...
5: Valuing Shares course, no two companies are exactly alike, but an analyst using this approach attempts to gather a large numb ...
PARt 2: VALUAtIoN, RISk ANd REtURN Remember, because the companies have no debt or preferred shares, the enterprise value and th ...
5: Valuing Shares Vcompany A = Vshares + Vdebt = (100,000,000 × $5) + $100,000,000 = $600,000,000 Next, divide this figure by to ...
PARt 2: VALUAtIoN, RISk ANd REtURN There is one other important consideration when you use multiples to perform valuation analys ...
5: Valuing Shares Of the three business lines, corporate finance enjoys the highest visibility, and includes activities such as ...
PARt 2: VALUAtIoN, RISk ANd REtURN bankers also prepare a prospectus, a document containing extensive details about the issuer a ...
5: Valuing Shares 5-5b SECoNdARY MARkEtS FoR EQUItY SECURItIES The secondary markets permit investors to execute transactions am ...
PARt 2: VALUAtIoN, RISk ANd REtURN Regardless of where a share trade takes place, someone has to facilitate that trade, and the ...
5: Valuing Shares SUMMARY ■ Preferred shares have both debt- and equity- like features, and do not usually represent an ownershi ...
PARt 2: VALUAtIoN, RISk ANd REtURN kEY tERMS ask price, 182 Australian Securities Exchange (ASX), 181 bid price, 182 book value, ...
5: Valuing Shares Q5-5 Why is it not surprising to learn that growth rates rarely show predictable trends? Q5-6 The book value o ...
PARt 2: VALUAtIoN, RISk ANd REtURN P5-10 Today’s date is 30 March 2016. E-Pay shares pay a dividend every year on 29 March. The ...
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