Principles of Corporate Finance_ 12th Edition

92 Part One Value bre44380_ch04_076-104.indd 92 09/30/15 12:46 PM In general, we can think of stock price as the capitalized val ...

Chapter 4 The Value of Common Stocks 93 bre44380_ch04_076-104.indd 93 09/30/15 12:46 PM Everything is the same in year 2 except ...

94 Part One Value bre44380_ch04_076-104.indd 94 09/30/15 12:46 PM DCF models work just as well for entire businesses as for shar ...

Chapter 4 The Value of Common Stocks 95 bre44380_ch04_076-104.indd 95 09/30/15 12:46 PM Valuation Format The value of a business ...

96 Part One Value bre44380_ch04_076-104.indd 96 09/30/15 12:46 PM Horizon Value Based on P/E Ratios Suppose you can observe stoc ...

Chapter 4 The Value of Common Stocks 97 bre44380_ch04_076-104.indd 97 09/30/15 12:46 PM earn more than the cost of capital. When ...

98 Part One Value bre44380_ch04_076-104.indd 98 09/30/15 12:46 PM If the concatenator business were a public Concatenator Corp., ...

Chapter 4 The Value of Common Stocks 99 bre44380_ch04_076-104.indd 99 09/30/15 12:46 PM firms, near-term growth is unsustainably ...

100 Part One Value bre44380_ch04_076-104.indd 100 09/30/15 12:46 PM Dividend discount model Company Z-prime is like Z in all re ...

Chapter 4 The Value of Common Stocks 101 bre44380_ch04_076-104.indd 101 09/30/15 12:46 PM b. What are the growth rates of EPS an ...

102 Part One Value bre44380_ch04_076-104.indd 102 09/30/15 12:46 PM c. What part of P 3 reflects the present value of growth opp ...

Chapter 4 The Value of Common Stocks 103 bre44380_ch04_076-104.indd 103 09/30/15 12:46 PM Phoenix’s recovery will be complete by ...

104 Part One Value bre44380_ch04_076-104.indd 104 09/30/15 12:46 PM MINI-CASE ● ● ● ● ● Reeby Sports Ten years ago, in 2007, Geo ...

● ● ● 105 bre44380_ch05_105-131.indd 105 09/02/15 04:05 PM Part 1 Value A company’s shareholders prefer to be rich rather than p ...

106 Part One Value bre44380_ch05_105-131.indd 106 09/02/15 04:05 PM where C 0 = –$1 million. We should invest in project X if it ...

Chapter 5 Net Present Value and Other Investment Criteria 107 bre44380_ch05_105-131.indd 107 09/02/15 04:05 PM You: The opportun ...

108 Part One Value bre44380_ch05_105-131.indd 108 09/02/15 04:05 PM business, or the profitability of other independent projects ...

Chapter 5 Net Present Value and Other Investment Criteria 109 bre44380_ch05_105-131.indd 109 09/02/15 04:05 PM Now the merits of ...

110 Part One Value bre44380_ch05_105-131.indd 110 09/02/15 04:05 PM Project B also requires an initial investment of $2,000 but ...

Chapter 5 Net Present Value and Other Investment Criteria 111 bre44380_ch05_105-131.indd 111 09/02/15 04:05 PM The discounted pa ...