Deterministic model, Financial Management

Deterministic Model

After the macroeconomic, industrial and business analysis of the company chosen is done First of all a point estimate for all the input variables in a valuation model is done. These input variables are used to arrive at the valuation of the company using an excel model. Based on the macroeconomic, industrial and company analysis, growth related forecasts are made for the company. These forecast are used to find the valuation of the company using an excel model. This is a parametric deterministic model.

Further it is shown that these input variables are difficult to predict correctly and at the best a range of values can be found. Monte Carlo simulation model is used is to predict how the valuation of the companies varies with the change in input variables.

Posted Date: 2/21/2013 2:43:13 AM | Location : United States







Related Discussions:- Deterministic model, Assignment Help, Ask Question on Deterministic model, Get Answer, Expert's Help, Deterministic model Discussions

Write discussion on Deterministic model
Your posts are moderated
Related Questions
Assembling the Divestiture Team: Divestment of a business requires a team of functional experts under the direction of an experienced project manager. The first and foremost ac

Strong form level of Efficiency This level states that price reflects all the available public and private information (past, present and future information). If the hypothesis

Explain about the Working Capital Management Working Capital Management is concerned with the management of current assets. It's a significant and integral part of financial m

Gross dividend At the ending of the financial year companies will announce the profits or losses that they have earned and a figure for net profit after tax. A company is able

Need help with explanations for the answers chosen, not good with math calculations, or explaining the answers, can you help with this.Chapters 6, 8

It is the organized and established firms that constitute the venture capital industry.

Question: You have been appointed as the head of the treasury of Platza International, an automobile firm with many subsidiaries abroad. The management of Platza International

Financial Communications Also known as investor or shareholder relations, this corporate communication sub function moves against from the traditional handling of the finan

Purpose of Issue CDs benefit both issuers and investors. From the issuers (banks) point of view, CDs are issued foreseeing the advantages over conventional deposits. The motives

Expected volatility is a major factor that affects the value of an option. Expected volatility of an option on bond is referred to as 'expected yield volatility'. The