Based on the explanation, what is EVA?
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Under Residual Income approach we say that it starts with BV & it’s better than FCF because it’s front-loaded but under both the method we do need to forecast which is a daunting task so how do we conclude that ...
Austell Industries Case Scenario Gordon Rowland, a non-executive (independent) director of Austell Industries PLC, is reviewing information related to the company’s executive compensation prior to an upcoming meeting of the Remuneration Committee of the Board. Austell is a large public ...
What does Tobin’s Q Ratio measure?
What is the difference between capital employed and invested capital?
Not sure if this was explained in class. Please explain the logic and treatment of preference stock on FCFF and ...
Can someone please confirm the formula for CAPM (fully integrated method).This was covered in Equity Part 1 (reading 2) In my notes I have it as: Re= Rf + Beta (ERP) Rf is for domestic country Beta is for the stock ERP is for global ...
Justified PE ratio is calculated by an Absolute valuation method. It’s IV₀ / Earnings (trailing or forward) So, justified PE ratio is what a company should command as per its fundamentals. We then compare Justified PE ratio with Market PE ratio of the ...
During boom when earning are high, prices should also be high and vice versa. People price stocks seeing their earnings. The practicality is different isnt it?
Aren’t we supposed to do the post tax of the difference amount and then add it back? Please clearify?