Podcast
Questions and Answers
What are the three common approaches taken in finance for valuation?
What are the three common approaches taken in finance for valuation?
- Intrinsic valuation, fair valuation, and market valuation
- Asset valuation, liability valuation, and investment valuation
- Market valuation, historical valuation, and future valuation
- Discounted cashflow valuation, relative valuation, and contingent claim valuation (correct)
What is a subjective exercise in finance?
What is a subjective exercise in finance?
- Merger and acquisition transactions
- Capital budgeting
- Investment analysis
- Valuation (correct)
What are some reasons for which valuations may be needed?
What are some reasons for which valuations may be needed?
- Market analysis, profit forecasting, asset management, risk assessment
- Investment analysis, capital budgeting, merger and acquisition transactions, financial reporting (correct)
- Product development, sales forecasting, employee performance evaluation, customer satisfaction
- Tax planning, budget allocation, shareholder meetings, regulatory compliance
What are some common terms for the value of an asset or liability?
What are some common terms for the value of an asset or liability?
In a business valuation context, what is used to determine the hypothetical price that a third party would pay for a given company?
In a business valuation context, what is used to determine the hypothetical price that a third party would pay for a given company?
What does the dividend discount model (DDM) attempt to calculate?
What does the dividend discount model (DDM) attempt to calculate?
What theory is the dividend discount model (DDM) based on?
What theory is the dividend discount model (DDM) based on?
What determines the value of a company according to the dividend discount model (DDM)?
What determines the value of a company according to the dividend discount model (DDM)?
If the value obtained from the DDM is higher than the current trading price of shares, what does it indicate?
If the value obtained from the DDM is higher than the current trading price of shares, what does it indicate?
What does the DDM take into consideration when calculating the fair value of a stock?
What does the DDM take into consideration when calculating the fair value of a stock?
