Dividend basis valuation, Finance Basics

Dividend Basis Valuation

Ownership of shares in entities - The owner to obtain a cash flow consisting of future dividends and the value of a share must correspond to the recent value of this future cash flow.  The shareholder cannot expect cash flows in perpetuity as he will sell his shares at once.

          Po =   Do/Ke

Note:   Whereas there is growth in equity,  P0 = d0 (1+g)/ (ke-

 

Posted Date: 1/31/2013 1:58:53 AM | Location : United States







Related Discussions:- Dividend basis valuation, Assignment Help, Ask Question on Dividend basis valuation, Get Answer, Expert's Help, Dividend basis valuation Discussions

Write discussion on Dividend basis valuation
Your posts are moderated
Related Questions

Role of Venture Capital in Economic Development The categories of venture that capitalists might invest will include: a) Business start-ups - Whenever a business has been

Price Earnings Ratio Valuation P/E ratio is traditionally employed for valuation of shares however it is an important ratio in the valuation of business. The P/E ratio is the

Maghrabi Enclosure follows a moderate current asset investment policy, but it is considering whether to shift to a different strategy. The firm''s annual sales are $500,000; its f

Holding Company Such holds more than a half of the equity share capital of other company or is a member and or controls a big percentage of Directors of the Board of one or mo

Pursuing self esteem ambitions and Creative Accounting Pursuing power and self esteem ambitions This is called "empire building" to enlarge the firm via acquisitions and me

Source of Finance for the Sole Proprietor Some sources of capital---Discuss a) Savings b) Assistance from friends or relatives c) Proceeds from sale of assets d) Ba

A bondholder buys a bond maturing in two years for Rs. 120 and earns Rs.15 per annum as interest. His YTM is ______ %.

Setting of Optimal Cash Balance Cash is often identified like a non-earning asset since holding cash quite than a revenue-generating asset includes a cost in form of foregone

Ask question #Minimu• 1.What is an Auction? E Bay is a market leader in online auction sites. Discuss SWOT for E bay using your web sources?. 2.Why so many entrepreneurs drawn to