COMPUTER- AIDED DECISIONS “COMPUTER SIMULATION OF HUMAN THOUGHT” What is Computer Simulation? A computer simulation or a computer model is a computer program that attempts to simulate an abstract model of a particular system. Computer simulations have become a useful part of mathematical modeling of many natural systems in physics‚ chemistry and biology‚ human systems in economics‚ psychology‚ and social science and in the process of engineering new technology‚ to gain insight into
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Investor pays a price today which entitles him to enjoy the benefits of all dividends the corporation pays throughout the lifetime. Analyst believe there is no subjectify to this model and it is crystal clear. Consistency - Another advantage of DDM is the fact the dividends tend to stay consistency over long period of time. Companies do not set up high dividend expectations because not living up to them would affect the share prices. And the companies pay in cash only which is present with them
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Vietnam National University – HCMC International University SCHOOL OF BUSINESS ADMINISTRATION COURSE SYLLABUS BA016IU Fundamentals of Financial Management 1. COURSE STAFF Lecturer: Ms. Phan Ngọc Anh‚ MBA Room: #205 E-mail: pnanh@hcmiu.edu.vn Consultation hours: Thursday OR by appointment (preferred) Teaching Assistant: TBA Should the students wish to meet the staff outside the consultation hours‚ they are advised to make appointment in advance. 2. COURSE INFORMATION
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Affairs: Tom Coughlin (Vice Chairman) left in December 2005 after pleading guilty to wire fraud and tax evasion for stealing hundreds of thousands of dollars from Wal-Mart. [1] Three Models: 1. DIVIDEND DISCOUNT MODEL The constant growth DDM stated that the current value of a firm’s stock price was equal to next year’s expected dividend divided by the investor’s required rate of return minus the expected dividend growth rate. And the required return could be decomposed into two parts: the
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GOODMAN FIELDER LIMITED (GFF) COMPANY VALUATION REPORT Investment BAFI 1042 Kevin Dorr 3195598 GOODMAN FIELDER LIMITED COMPANY VALUATION REPORT Scope • The report looks at all publicly available data about the company via the annual reports and publications • An analyses of the company’s weakness and strength has been conducted with detailed look at the fundamentals impacting the company • The report outlines the ratios in relation to probability‚ return on equity‚ using several
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Contents Abstract The report uses a top-down valuation process to examine the Australian economy‚ the metal and mining and consumer industries and analyses BHP Billiton Limited and Woolworths Limited. Variables affecting the Australian economy are inflation and interest rates; the gross domestic product; the exchange rate; and economic risks. The metal and mining industry is the largest sector in Australia and the consumer industry is the third largest sector. The present value
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valuation methods that we can use in valuing company’s stock. For instance: Discounted Cash Flow Model (DCFM)‚ Dividend Discount Model (DDM) and Earnings Growth Model (EGM).DDM is the valuation method that we use in this paper. 2.2 Problem Statement and Objective This research is mainly to value Public Bank Bhd stock through Dividend Discount Model (DDM). 2.3 Research Question * What is the value of Public Bank Bhd stock? * Is Public Bank Bhd stock a worth enough stock
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market per share of Wesfarmers is $27.8. Currently‚ the market share price of common stock is $33.08 in 27 May‚ 2011. The share price rise about 19%. The current market price is quite close to the results of four valuation models‚ which use WACC and CAPM to evaluate total value in the Wesfarmers. From the forecasting date‚ it seems that the common stock is slightly undervalued. The report will choose the most suitable valuation models and give reasonable recommendation for the common shareholders at
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Assessment of Wal-Mart valuation using different methods To test the assumption of a discount rate of 7% as given in the outline of the case‚ we calculated the required rate of return for the Wal-Mart stock using CAPM . Using rWalMart = Rf + βWalMart [E(RM) – RF]‚ we find the required rate of return to be 7.01% and in line with the information given in the case outline. Perpetual dividend growth model: The standard method of calculating a stock price using the perpetual dividend growth
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EIC Analysis Economy There are many things that may happen in the world that could affect the stock market as a whole‚ as well as individual stocks. The stock market reacts well to things such as low inflation‚ increasing Gross National Product (GNP)‚ and other positive news in the economy. The market does not react well to signs that inflation is on the rise or unemployment rising. Today¡¯s inflation rate is on the rise due to hurricane Katrina and high gas prices. ¡°Consumer prices rose
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