The Henley Corporation is a privately held company specializing in lawn care products and services. The most
recent financial statements are shown below.
Income Statement for the Year Ending December 31 (Millions of Dollars)
Lecture 2: Valuation
Valuation in Finance
In 1938, John Burr Williams postulated
what has become the fundamental
theory of valuation:
The value of any financial asset equals the
present value of all of its future cash flows.