TAILIEUCHUNG - Lecture Investment analysis & portfolio management - Chapter 14

After studying this chapter you will be able to understand: To develop a model for the valuation of shares and bonds, to use this model to estimate the cost of equity and the cost of debt, to consider further practical influences on the valuation of securities. | Investment Analysis Lecture: 14 Course Code: MBF702 Outline RECAP DIVIDEND VALUATION MODEL - CONTINUE COST OF EQUITY COST OF PREFERENCE SHARES Objectives - RECAP To develop a model for the valuation of shares and bonds. To use this model to estimate the cost of equity and the cost of debt. To consider further practical influences on the valuation of securities. Elements of cost of capital - RECAP DIVIDEND VALUATION MODEL The theoretical model - RECAP The model then becomes: If the dividend is assumed to be constant this is a perpetuity that simplifies to: DIVIDEND VALUATION MODEL The theoretical model This model can then be used to determine the ex-div market value of a share with a constant dividend each year given the assumptions upon which the model is based. With growth If dividends are forecast to grow at a constant rate in perpetuity, where g = growth rate DIVIDEND VALUATION MODEL The theoretical model Assumptions behind the dividend valuation model rational investors all .

• Tài chính doanh nghiệp
• Investment analysis
• Portfolio management
• Investment management
• Investment theory
• Investment environment
• Investment analysis
• Investment companies
• Time value of money
• Characteristics of investment
• Investment portfolio management
• Investment analysis & portfolio management
• Investment background
• Developments in investment theory
• Management of common stocks