Question: Discuss the relative merits of including risk adjustments in cash
Discuss the relative merits of including risk adjustments in cash flow or in discount rates—especially for high-growth companies in emerging markets—and show how both approaches can be aligned.
Answer to relevant QuestionsWhat are some of the differences between the ways the equity and credit markets operate? To estimate the beta for a Brazilian telecommunications company, you have collected a sample of telecom peers in Latin America and Asia and peers in the United States and Europe. The median beta versus a world index is ...You are computing the value of a firm headquartered in an emerging market. Identify the factors unique to an emerging market that need to be evaluated when estimating the cost of equity using the Capital Asset Pricing Model ...Last year, GrowthCo traded at $20 per share. Over the past 12 months, the company’s share price rocketed to $60 per share. Does this mean the share price was misvalued last year? If a bank increases its maturity mismatch, what happens to its economic spread before taxes and its economic spread after taxes (i.e., including the tax penalty)?
Post your question