Appropriate method to calculate firm value

Assignment Help Financial Management
Reference no: EM131859711

1. Select one of the following theories and provide an argument about why it might hold and why it might not. Once you have done this, give your personal opinion on its relevance to explaining overall corporate dividend behavior.

Residual theory of dividends

"Bird-in-the-hand" argument

Informational content of dividends

Investor preference for steady dividend payments

2. Explore the valuation methods listed below. Then, create an initial discussion post in which you explain which method is the more appropriate method to calculate firm value, and why.

1. Book value

2. Liquidation value

3. Equity value

4. Enterprise value

5. Discounted cash flows

short answer only 2-3 paragraph?

Reference no: EM131859711

Questions Cloud

Account for ashley to pay for her college expenses : Will there be enough money in the account for Ashley to pay for her college expenses? Assume the rate of interest stays at 8 percent during the college years.
What leverage ratio must farmer achieve in order : What leverage ratio must a farmer achieve in order to grow at a 12% rate?
Rate of return on equity under the new capital structure : if the company changes its capital structure in this manner. What would be the expected rate of return on equity under the new capital structure?
Decide not to participate in rights offering : If you currently own 3,000 shares of stock in the company and decide not to participate in the rights offering,
Appropriate method to calculate firm value : create an initial discussion post in which you explain which method is the more appropriate method to calculate firm value, and why.
Pros and the cons of currency controls in emerging markets : There are several ways to avoid emerging market crises. What are the pros and the cons of currency controls in emerging markets?
Charge of implementing marketing analytics into organization : If you were in charge of implementing marketing analytics into an organization,
State grants to school districts is based and policy goal : Discuss the formula on which the distribution of state grants to school districts is based and the policy goal.
Estimate the terlingua equity beta : Estimate the Terlingua’s equity beta using the best procedure described in the lecture.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the short-term and long-term financial impact

In setting up a union how you anyone go a bout getting this information: Financial Statements: What financial statements will you utilize in making your proposal, and how will you use these statements? Proposal Impact: What impact will your proposal ..

  Attention on the timing of cash inflows and outflows

The cash budget focuses our attention on the timing of cash inflows and outflows. But is it realistic, at all, to assume that we know when these flows might occur, five or six months from now? And if not, if we're really just relying on guesswork, th..

  What is the current yield on the bonds

Bourdon Software has 11 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 108.3 percent of par. What is the current yield on the bonds?

  Convexity is desirable feature of bonds because

Convexity is a desirable feature of bonds because.

  How much are you willing to pay for their stock today

A company just paid a dvidend of $3 per share. The company is in a very profitable growth mode and expects that its dividend will grow 10% annually over the next 4 years. The company has told investors that after the 4th year, it expects the annual d..

  What is the present value of the expected dividends

what is the present value of the expected dividends for Scotts Dairy? what is the expected return?

  Regret associated with the alternate decision

The regret associated with the alternate decision would be

  Additional funds needed for the coming year

Broussard Skateboard's sales are expected to increase by 15% from $7.8 million in 2015 to $8.97 million in 2016. Its assets totaled $3 million at the end of 2015. Broussard is already at full capacity, so its assets must grow at the same rate as proj..

  Complete portfolio is composed of treasury bills

You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 3% and a risky portfolio, P, constructed with two risky securities, X and Y.

  Earnings and profitability analysis

The Big Apple Bank has the following common size income statement where each item is as a % of total average assets Earnings and Profitability Analysis

  Hedge funds-venture capitalists and private equity firms

Describe the typical differences between Hedge Funds, Venture Capitalists, and Private Equity Firms?

  What is the return on assets and what is return on equity

Keller Cosmetics maintains an operating profit margin of 8.55% and a sales-to-assets ratio of 3.00. It has assets of $610,000 and equity of $410,000. Interest payments are $41,000 and the tax rate is 30%. What is the return on assets? What is the ret..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd