11 10 30 Concept Review

11 10 30 Concept Review - Firm Valuation Individual Stocks...

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Firm Valuation Individual Stocks Individual Stocks Portfolio Choice and Diversification CAPM (Individual Securities) CAPM (Po r Managerial Finance: Concept TA: Pablo Villanueva October 30, 2011
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Firm Valuation Individual Stocks Individual Stocks Portfolio Choice and Diversification CAPM (Individual Securities) CAPM (Po r Firm Valuation Enterprise Value is defined as presente value of future free cash flow of firm. Value of Equity=Enterprise Value+Cash-Debt The above is the same as Value of Equity+Value of Debt=Enterprise Value+Cash Assets=Equity + Debt Firm Valluation Dividend Discount Model: Present value of future dividends per share. Total Payout Method: (Future Value of Total Dividends and Repurchases)/Number of Shares Free Cash Flow: (Present Value of Future Cash Flow+Cash-Debt)/Number of Shares
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Firm Valuation Individual Stocks Individual Stocks Portfolio Choice and Diversification CAPM (Individual Securities) CAPM (Po r Expected Return and Volatility Expected Return
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11 10 30 Concept Review - Firm Valuation Individual Stocks...

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