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10 Cards in this Set
- Front
- Back
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Simple ROE
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NI / BVE
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DuPont ROE
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(NI/Sales)(Sales/Total Assts)(Total Assts/BVE)
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Net profit margin
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NI/Sales
6-7% mean-reverting |
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TAT
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Sales/Total Assets
1.5-2% constant |
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Leverage
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Total Assets/BVE
1-1.5% constant |
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Option value increases with:
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time, risk
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Why binomial?
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more practical, deal with dividends, more intuitive valuation technique
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Types of real options
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-follow on
-abandon -investment timing -vary input/output |
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Analysts perspectives
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banks: liquidity
creditors: CF brokers: profit |
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Three factors that drive productivity/efficiency
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operations
investments financing |
