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
Determine the steps for managing the funds For managing the funds first thing you would need is information. Externalinformation has to be collected from environment and accoun

They are issued in the local market by a domestic borrower and are usually denominated in the local currency. For example, US companies issuing bonds to US reside

The management of Nelson plc wish to estimate their firm’s equity beta. Nelson has had a stock market quotation for only two months and the financial management feels that it would

What is the explanation for leaset cost selection

Reasons for mergers and acquisitions The key reasons for mergers and acquisitions, is to maximise shareholder wealth otherwise it wouldn’t be worthwhile. R

(a) Presume we have a portfolio of n names with some default correlation ρ . The risk of the complete portfolio moves according to the change in default correlation. Alternative

1. It is mandatory that every carrier transporting hazardous materials should display correctly the emergency information panel. Emergency information panel should be legibly and

Expalin the basic concept of financial management and Cost of Retained Earnings and External Equity??? Also explain the hoe can ew calculate the external equity? Help me

A fixed income security investor can expect to receive a rupee returns from the following sources: (a) Interest payment, (b) Capital gain or loss at maturity or when so

Explain how a firm determines the optimal level of current assets. The optimal level of working capital is defined by finding the amount that balances the requirement for liquidi