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7 Cards in this Set
- Front
- Back
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Holding Period Return |
r=(P1-P0+CF1)/P0=(P1+CF1)/P0 |
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Gordon Growth Model Equity Risk Premium |
(1yr forecasted dividend yield on market index)+(consensus long term earnings growth rate)-(long term government bond yield) |
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Adjusted Beta |
(2/3 x regression beta)+ (1/3 x 1) |
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Weighted Average Cost of Capital |
(market val of debt/market val of debt and equity) x rd x (1- tax rate) + (market value of equity/market val of debt and equity) x re |
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Gordon growth Stock Valuation Model |
v0=(d0(1+g))/(r-g)=d1/(r-g) |
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Two Stage Stock Valuation Model |
v0= [Σd0(1+gs)^t/(1+r)^t]+[(do x (1+gs)^n x (1+gl))/((1+r)^n x (r-gl))] |
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Value of perpetual preferred shares |
vp = (dp/rp) |
