alsoconsiderhowbesttoestimatetheterminalvalueatthe
end of the estimation phase.
InChapter5,welookatequityvaluationmodels,beginning
withthedividenddiscountmodelandcomparingitsresultsto
a free cash flow to equity model.
InChapter6,wepresentarangeoffirmorbusinessvaluation
models,beginningwiththecostofcapitalapproachbutalso
including the adjusted present value and excess return
models.While weshow thatthemodelsdeliver equivalent
results, we consider the pluses and minuses of each one.