Discuss the assumptions of the dividend discount model

Assignment Help Management Theories
Reference no: EM13670358 , Length: word count:150

Discuss the assumptions of the dividend discount model (DDM), the necessary information needed to conduct equity valuation using the DDM, and give one alternative method of valuation from your text that can be used if not all of the necessary information needed for the DDM valuation is available.

You might like to check out one of my favorite investment related blogs. The Motley Fool has really brief lessons and examples on all kinds of financial topics and investments. They have a page on the DDM. Here''s an interesting tidbit from them. Some brokerage firms actually use the DDM so it''s not just an exercise in a book.

"Merrill Lynch (NYSE: MER) uses the DDM model as a component of its market-beating Alpha Surprise Model. JP Morgan (NYSE: JPM) uses the DDM as an important input into the valuation and stock selection process. However, the DDM is only one of many valuation tools used in equity analysis."

Reference no: EM13670358

Questions Cloud

Evaluate the tension in the cable towing the sensor : A helicopter flies over the aortic ice pack at a constant altitude, towing an airborne 119 kilogram laser sensor that measures the thickness of the ice. estimate the tension in the cable towing the sensor
Determine at what speed can it be negotiated : A curve of radius 120 meter is banked at an angle of 23.0o. Determine at what speed can it be negotiated under icy conditions where friction is negligible
Estimate what is her average density : The shuttle Galileo has experienced engine trouble on her approach to Star Fleet Command and has landed in San Francisco bay. Estimate what is her average density
Evaluate the tension in each cord : If the two buckets are pulled upward with an acceleration of 1.50 m/s2 by the upper cord, evaluate the tension in each cord
Discuss the assumptions of the dividend discount model : Discuss the assumptions of the dividend discount model (DDM), the necessary information needed to conduct equity valuation using the DDM, and give one alternative method of valuation
Find the apparent acceleration experienced by the crew : Kirk and Spock have the chance to take a tour of an ancient space station that was built before gravitational field generators were developed. Find the apparent acceleration experienced by the crew remaining on the rim
Obtain the maximum force the motor should exert : An elevator (mass 4200 kilogram) is to be designed thus that the maximum acceleration is 0.0300 g. Obtain the maximum force the motor should exert on the supporting cable
Obtain what is the mass of each : Two objects attract each other with a gravitational force of magnitude 1.00 x 10-8 Newton when separated by 20.0 centimeter. estimate what is the mass of each
Obtain what is the acceleration of the elevator : A student stands on a bathroom scale in an elevator at rest on the 64th floor of a building. The scale reads 845 Newton. Estimate what is the acceleration of the elevator

Reviews

Write a Review

Management Theories Questions & Answers

  Select entry level business process analyst

Select entry level business process analyst

  A maserati sports car is considered a specialty good

A Maserati sports car is considered a specialty good because interested buyers will travel far to buy one

  Adequacy of existing controls

Identify existing controls Adequacy of existing controls Consequence rating Likelihood rating Level of risk Risk Priority What can happen How it can happen

  Explain how the events of meiosis account

Explain how the events of meiosis account for the law of segregation and law of assortment

  Weaver communication with the berlo model

Compare the Shannon / Weaver Communication with the Berlo model.

  An ever-evolving and demanding global business environment

Consider how your company juggles its obligations to both sustainablity and profitability. How do these obligations relate to each other and coexist in an ever-evolving and demanding global business environment?

  Consider the global sourcing lessons multinationals need to

consider the global sourcing lessons multinationals need to learn from the experiences of other companies such as ikea

  A customer of uk supermarket chain tesco

A customer of UK supermarket chain Tesco

  What are your core values

What are your core values? You may wish to review the Work Values Cards

  Next few meetings to how language and jargon are used

Does your organization, and communications, use lots of jargon? In meetings are there many occasions where language and stories are used to include or exclude people? Pay attention in your next few meetings to how language and jargon are used.

  What outcomes does job satisfaction influence

What outcomes does job satisfaction influence?

  Funding the rising cost of u.s. health care

Funding the Rising Cost of U.S. Health Care

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd