Explain why the DCF valuation method is preferred by academics and identify the practical difficulties in using
Question:
Explain why the DCF valuation method is preferred by academics and identify the practical difficulties in using this method.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 40% (5 reviews)
The DCF valuation method is preferred by academics because it is ...View the full answer
Answered By
Joseph Mwaura
I have been teaching college students in various subjects for 9 years now. Besides, I have been tutoring online with several tutoring companies from 2010 to date. The 9 years of experience as a tutor has enabled me to develop multiple tutoring skills and see thousands of students excel in their education and in life after school which gives me much pleasure. I have assisted students in essay writing and in doing academic research and this has helped me be well versed with the various writing styles such as APA, MLA, Chicago/ Turabian, Harvard. I am always ready to handle work at any hour and in any way as students specify. In my tutoring journey, excellence has always been my guiding standard.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Corporate Finance Principles And Practice
ISBN: 9781292450940
9th Edition
Authors: Denzil Watson, Antony Head
Question Posted:
Students also viewed these Business questions
-
READ THE FOLLOWING ARTICLE AND THEN WRITE A SUMMARY AND DESCRIBE WHICH VALUATION METHOD DISCUSSED IN THE ARTICLE YOU FIND TO BE MOST EFFECTIVE AND WHY. Write a minimum of 400 words. When trying to...
-
Janet Stringer argues that the DCF valuation method has increased managers focus on short-term rather than long-term performance, since the discounting process places much heavier weight on...
-
Read the comment letter below written by Micron's CFO to the FASB dated June 30, 2004 and answer the following question. Director of Major Projects Financial Accounting Standards Board 401...
-
Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated...
-
What are trade discounts and quantity discounts? From an accounting viewpoint, how does the effect of trade and quantity discounts on selling (or invoice) price differ from the effect of sales...
-
On 1 February 2023, Galah Ltd, an Australian company that has A\$ as its functional currency, enters a forward exchange contract to buy \( 300000\) in six months' time at 31 July 2023. The contract...
-
Often an important aspect of a CPA's examination of financial statements is his observation of the taking of the physical inventory. Required: a. What are the general objectives or purposes of the...
-
(Ethical IssuesCompensation Plan) The executive officers of Rouse Corporation have a performance-based compensation plan. The performance criteria of this plan are linked to growth in earnings per...
-
Barry Yellow started his painting business on September 1, 2021. He employed John Wilson, as an accounting assistant. John recently graduated from college with a postgraduate diploma in...
-
The private equity groups Blackstone, Carlyle and Hellman & Friedman raised almost $15bn of debt on Thursday across bond and loan markets as they close in on financing the largest leveraged buyout...
-
Melrose Industries plans to spin off the GKN automotive division as a new UK-listed company in a move that will crystallize the break-up of one of Britains oldest engineering businesses. The FTSE 100...
-
SEC Accounting and Auditing Enforcement Release (AAER) No. 108 specifies certain conditions or criteria that a bill and hold transaction of a public company should meet in order to qualify for...
-
What are the investment grade ratings used by S&P.
-
What are the advantages of expected shortfall over value at risk?
-
Explain how machine learning is changing the way lending decisions are made. What are the risks in relying on machine learning algorithms for these decisions?
-
Outline the basic steps in promotion planning.
-
Explain direct advertising objectives versus indirect advertising objectives.
-
A toy company has assigned you to analyze the factors influencing the sales of its most popular doll. The number of these dolls sold during the last 23 years is given in the file P11_57.xlsx. The...
-
Michelles trust is subject to 3.8% surtax on the lesser of the trusts net investment income or the excess of the trusts adjusted gross income over the $12,400 threshold (the highest trust tax rate)....
-
We have already determined the expected returns and standard deviations for both Supertech and Slowpoke. In addition, we calculated the deviation of each possible return from the expected return for...
-
Consider Supertech and Slowpoke. From our earlier calculations, we find that the expected returns on these two securities are 17.5 percent and 5.5 percent, respectively. The expected return on a...
-
Mara Faccio is considering investing in the common stock of Merville Enterprises. In addition, Mara will either borrow or lend at the risk-free rate. The relevant parameters are: Suppose Mara chooses...
-
Recall and further consider the organization that you focused on in our Week One Threaded Discussion. Home Depot. Compare and contrast the key activities involved in bringing corporate and workforce...
-
In what ways does Kotter's eight Step process line up with the Awareness, desire, knowledge, ability, and reinforcement model for change in business, government, and our community by Jeffrey M. Hiatt...
-
1. Where and how does a PM get Authority and what are the pitfalls of a PM having no authority? (additional research beyond the book may be needed to answer this) 2. Describe the relationship between...
Study smarter with the SolutionInn App