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OverviewEquity Valuation reviews and critically examines the standard approach to equity valuation using a constant risk-adjusted cost of capital and develops a new valuation approach discounting risk-adjusted fundamentals using nominal zero-coupon interest rates. It is organized as follows: Chapter 2 (Risk-Adjusted Discount Rates) reviews standard valuation models based on risk-adjusted discount rates. Chapter 3 (Multi-Period Asset Pricing Theory and Accounting Relations) examines key results from multi-period asset pricing theory in discrete-time, and shows how equity valuation models can equivalently be based on free cash flows or accrual accounting numbers. Based on these results, the authors derive an accounting-based multi-period equity valuation model presented in Chapter 4 (An Accounting-Based Multi-period Equity Valuation Model) with equilibrium risk-adjustments determined by prices of aggregate consumption claims. Chapter 5 (Equity Valuation with HARA Utility) includes a general equilibrium analysis of a setting in which the investors have HARA utility, and aggregate consumption and residual operating income are jointly normally distributed. A set of appendices follows including Appendix B that extends the setting to preferences with external habit formation (which recently has gained popularity in asset pricing theory). Appendix C, which discusses the relationship between risk-adjusted expected cash flows and certainty equivalents. Full Product DetailsAuthor: Peter O. Christensen , Gerald A. FelthamPublisher: now publishers Inc Imprint: now publishers Inc Volume: 11 Dimensions: Width: 15.60cm , Height: 0.70cm , Length: 23.40cm Weight: 0.189kg ISBN: 9781601982728ISBN 10: 1601982720 Pages: 126 Publication Date: 21 October 2009 Audience: Professional and scholarly , Professional & Vocational Format: Paperback Publisher's Status: Active Availability: Out of print, replaced by POD We will order this item for you from a manufatured on demand supplier. Table of Contents1 Introduction. 2 Risk-adjusted Discount Rates. 3 Multi-period Asset Pricing Theory and Accounting Relations. 4 An Accounting-based Multi-period Equity Valuation Model. 5 Equity Valuation with HARA Utility. Appendix A: Proof of Theorems. Appendix B: Habit Formation. Appendix C: Risk-adjusted Expected Cash Flows and Certainty Equivalents. References.ReviewsAuthor InformationTab Content 6Author Website:Countries AvailableAll regions |