Lec 17

.pdf
School
University of North Carolina, Charlotte **We aren't endorsed by this school
Course
ACCT 651
Subject
Economics
Date
Nov 12, 2023
Pages
2
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Four valuation models Common equity valuation models DCF to common equity model Residual income to common equity model Entity value (value to all investors) models: DCF to all investors model Residual income to all investors model P e = ෍ ?=1 𝑇−1 D t 1 + r e ? + D T r e − g 1 + r e 𝑇−1 P e = CE 0 + ෍ ?=1 𝑇−1 RI t 1 + r e ? + RI T r e − g 1 + r e 𝑇−1 P f = ෍ ?=1 𝑇−1 C t 1 + r w ? + C T r w − g 1 + r w 𝑇−1 P f = NOA 0 + ෍ ?=1 𝑇−1 RNOI t 1 + r w ? + RNOI T r w − g 1 + r w 𝑇−1
References The material in this presentation is based on, or taken from: Russell Lundholm and Richard Sloan, Equity Valuation and Analysis , Fifth Edition, Independently Published (July 11, 2019). Federal Reserve Bank of St. Louis Economic Data (FRED): https://fred.stlouisfed.org/ Congressional Budget Office: https://www.cbo.gov/
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