Explain theory about valuation procedures in investment bank

Assignment Help Finance Basics
Reference no: EM1312324

Explain Theory about valuation procedures in investment banking

A standard criticism of investment banking firms is their approach to valuation which includes determining a price for an offering and then manipulating the input variables into conventional valuation techniques to justify the arrived price. If that is so, wouldn't use of heuristics rather than more sophisticated valuation procedures expedite the procedure? What do you think? Explain.

Reference no: EM1312324

Questions Cloud

Compete also are driven out of business : appliance store are unable to successfully compete also are driven out of business. why does Wal-Mart have a cost advantage over its competitor.
Defining the significant terms in biostatistics. : Explain the study of hypothesis? Specify the outcome variables and also state how they were measured? Explain the study factors (exposures) and how were they measured?
Near and far points of a person’s uncorrected vision : A person's prescription for her new bifocal glasses calls for a refractive power of -0.461 diopters in the distance-vision part, and a power of +1.83 diopters in the close-vision part. Find the near and far points of this person's uncorrected visi..
Cooperate with its rival or cheat in every period of play : Every may either 'cooperate' with its rival or 'cheat' in every period of play. If both cooperate, they earn $100 every in that period.
Explain theory about valuation procedures in investment bank : Explain Theory about valuation procedures in investment banking and heuristics rather than more sophisticated valuation procedures expedite the procedure? What do you think
Categorizing the events as dependent or independent : Categorize the events as dependent or independent. Events A and B where P (A) = 0.7, P (B) = 0.8, and P (A and B) = 0.56.
Monetary policies would be appropriate at this time : Illustrate what fiscal policies also monetary policies would be appropriate at this time. You must use at least one article. Use references also APA.
Equilibrium price and quantity for given level of income : Suppose the demand curve for a product is given by Q = 300-2P+4I where 'I' is average income measured in thousands of dollars. The supply curve is Q = 3P - 50.
Theory about cost of debt as well as tax shield in us : Theory about cost of debt as well as tax shield in US and conclusions can you reach analyzing corporate debt capacity

Reviews

Write a Review

Finance Basics Questions & Answers

  Expect share you select to affect return

Would you expect share you select to affect return that you earn on your portfolio. Go through the method of working out why C is the best option for portfolio.

  Computation of dividend per share paid

Computation of dividend per share paid and what is the most recent dividend per share paid on the stock

  Creating portfolio with expected risk free rate of return

What are some methods to create a portfolio with the expected risk free rate of return? Think of putting two stocks into a portfolio.

  Computation of cost of equity using constant growth rate

Computation of cost of equity using constant growth rate and The constant growth rate dividend capitalization model approach

  Computation of value of a bond using several required rate

Computation of Value of a Bond using various required rate of return using coupon rate maturing in 20 years for an investor whose required rate of return

  Computing wal-mart-s original strategy for creating value

Wal-Mart, discount merchandiser, started by putting large stores in small Sunbelt towns that its competitors had neglected. Compute Wal-Mart's original strategy for creating value?

  Calculation of npv & irr of uneven cash flows

Calculation of NPV & IRR of uneven Cash Flows and Comparing NPV & IRR between two Investment options.

  Computation of after-tax cost of debt

Computation of after-tax cost of debt is planning to place privately with a large insurance company

  Adjust the financial statements on posting balance sheet

adjust the financial statements  on posting Balance Sheet and Material loss on a year-end receivable because of a customer's bankruptcy

  Present and defend the budget

Given a description of a new business, new product, service or project develop, present and defend the budget.

  Determining the portfolio-s expected returns

Portfolio is invested 37.7% in Stock A, 26.6% in Stock B, and remainder in Stock C. Expected returns are 19%, 26.1%, and 11.8% respectively. Determine the portfolio's expected returns?

  Black-scholes-merton model-find price of european call-stock

Use Black-Scholes-Merton model to find out the price of a 3-month European call on stock with strike price of= $40.

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