Modiglianis proposition ii 64 mm theory 63 n net

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Unformatted text preview: xible production option, 94 Future value, 12 —I— Interest rates, 16 Internal rate of return, 25 Investment rules book rate of return, 25 internal rate of return, 25 net present value, 24 —M— Market efficiency, 53 empirical tests, 54 semi-strong form, 54 strong form, 54 weak form, 54 Market risk, 33 measuring, 33 Miller and Modigliani Dividend-Irrelevance Proposition, 76 Miller and Modigliani's Proposition I, 63 Miller and Modigliani's Proposition II, 64 MM-theory, 63 —N— Net present value, 13 Net present value investment rule, 24 —O— Objective of the firm, 9 Options, 80 call, 80 exercise price, 80 expiration date, 80 position diagram, 82 pricing, 85 pricing, Black-Scholes Formula, 90 value, 81 —P— Pecking order theory, 71 Perpetuities, 13 Download free ebooks at bookboon.com 95 Corporate Finance Index Sensitivity analysis, 51 Simulation analysis, 51 Standard deviation, 29 Stock market anomalies, 58 Stock repurchases in practise, 74 Stocks valuing, 21 —T— Terminal cash flow, 49 Three-Factor Model, 45 Timing option, 93 Trade-off theory, 69 —U— Unique risk, 33 —V— Valuing businesses, 49 Variance, 29 —W— Weighted Average Cost of Capital, 71 —Y— Yield curve, 19 Portfolio market risk, 37 risk and return, 35 theory, 38 variance, 36 Portfolio risk, 33 Present value, 10 Principle of value additivity, 12 Put option, 80 —R— Real option abandonment, 93 expansion, 93 flexible production, 94 practical problems, 94 timing, 93 Real options, 93 Risk measurement variance, 29 risk premia, 28 Risk-return tradeoff, 29 —S— Scenario analysis, 51 Please click the advert Try this... Challenging? Not challenging? Try more www.alloptions.nl/life Download free ebooks at bookboon.com 96...
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This note was uploaded on 10/26/2012 for the course 19 19 taught by Professor - during the Spring '12 term at Sunway University College.

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