DDM CASE STUDY CHAPTER – 5 HAPPY BULLS AND WORRIED BEARS * OVERVIEW OF THE CASE * End run provides two schemes: 1. Worried bear 2. Happy Bulls * With EndRun’s Worried bear fund scheme you can earn 400% rate of return in times of recession. * With EndRun’s Happy Bulls fund scheme you can earn 12 times your initial
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stock price will decrease and it results in a lower PE ratio.It may mislead some of investors to buy the stock . Apart from PE ratio‚ Dividend Discount Model (DDM) will be a better way to value the stock price. The DDM model seeks to value a stock by using predicted dividends and discounting them back to their present value. The Formula of DDM is Dividend per share over discount rate minus dividend growth rate. Value of Stock = D1 R- G Where‚ • DPS (1) = Dividends per
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ERD Normalization Name DBM 380 April 19‚ 2010 Instructor Introduction Normalization means to organize data and break-down the data into smaller tables‚ which makes data management an easier process. To avert redundant data‚ normalization of a database occurs thus making sure data dependencies make sense. Database normalization aids in the identification of potential
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After hearing that a family friend had attended GSDM and subsequently graduated to become a teacher there‚ I’ve only heard good things about the school. This has made me extremely interested in the school. I undoubtedly admire the clinical practice‚ the dental school faculty‚ and the overall GSDM culture and vision. The clinical practice is outstanding and it will provide me with unmatchable experience to develop my capabilities as a general practitioner of dentistry – a dream I had aspired for ever
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price is higher than the actual price. Although the results from DCF are the same as what we get from ROPI‚ the DCF is a better model to perform valuation analysis of Delta Air Lines compared to DDM and ROPI for the following reasons: 1. DCF is a valuation that is popular and widely accepted model. Unlike DDM (Dividend Discount Model)‚ this approach is that it can be used with a wide variety of forms that don’t pay dividends‚ and even for companies that
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Valuation Models Discounted Dividend Model (DDM) Constant Growth DDM Differential Growth DDM 2. Earning-based Models Earnings Capitalisation without growth Earnings Capitalisation with growth Price-Earning Multiple Model 3. Free Cash Flow Models Discounted Free Cash Flow to Equity (FCFE) model Discounted Free Cash Flow to the Firm (FCFF) model 4. Book Valuation (Net Asset Value) Model Discounted Dividend Model The dividend discount model (DDM) is a method of valuing a company based
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remained fairly stable and dividends have increased at an average rate of 5.3%. In view of a history of dividend payments by the company and the understandable relationship dividend policy bears to the company’s earnings‚ Rae concludes that the DDM is appropriate to value the equity of Tasty Foods. Further‚ he expects the moderate growth rate of the company to persist and decides to use the Gordon growth model. Rae uses the CAPM to compute the return on equity. He uses the annual yield of 4%
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equity (the cash flow left over after net debt payments‚ net capital expenditures and working capital investments.(For Macintosh version) 6. dcfval.xls: This program computes the value of equity in a firm using a two-stage dividend discount and FCFE model. (For more extensive choices on valuation‚ look at the programs under the valuation section below.)(For Macintosh version) 7. lboval.xls: This program analyzes the value of equity and the firm in a leveraged buyout. (For Macintosh version)
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|| Prepared By: | | \ TABLE OF CONTENTS 1 INTRODUCTION TO OLD CHNAG KEE GROUP 4 1.1 Overview 4 1.2 History 5 1.3 Share Price Performance 5 1.4 Products and Services 5 1.5 Brands 5 1.6 Corporate Strategy and Objectives 5 1.7 Sources of Competitive Advantage 5 1.8 Ownership Structure 5 1.9 Capital Structure 5 1.10 Management
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Report Recommendation BUY Price at 9 Jan 2013 (USD): $52.45 Price Target: $63.17 52 Week Range: $50.99– $111.81 Summary Section4 – Valuation Reasons about using FCF analysis Computing FCFF from Net Income and CFO & Computing FCFE from FCFF Report Introduction Nike is the largest footwear company in the world selling footwear‚ apparel‚ equipment through 25‚000 retailers. As a stable‚ yet fast growing company‚ Nike is facing several obstacles in its core section. In this
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