Q14: Show Four (4) Intrinsic Valuation Methods for the
following (Equations/Definitions): Give and Example!!!
Perpetuity Model:
Equation:
Example:
Gordon Growth:
Equation:
Example:
Multiple...
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Finance
Q14: Show Four (4) Intrinsic Valuation Methods for thefollowing (Equations/Definitions): Give and Example!!!
Perpetuity Model:
Equation:
Example:
Gordon Growth:
Equation:
Example:
Multiple (P/E) Approach:
Equation:
Example:
Answer & Explanation
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A Perpetuity Model It is type of annuity that receives periodic cash flows indefinitely Equation Value of Stock Cash Flow Discount Rate Example If Company X receives cash flow USD 54 for indefinite period Then what will be the value of the stock of company X Use discount rate 10 Value of stock X
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