Valuation of the Firm's Cash Flows

Michael Dempsey

Chapter 13 in Stock Markets, Investments and Corporate Behavior:A Conceptual Framework of Understanding, 2015, pp 223-251 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The following sections are included:IntroductionComplicating Issues in DiscountingTowards Coherence in DiscountingA Discount Model for Cash Flows Subject to Taxes (Proposition 1)The Cost of Equity and Leverage (Proposition 2)The Market Valuation of the Firm's Component Cash FlowsFree Cash Flow (FCF)Cash Flow to Equity and to Debt (CFD)Capital Cash FlowThe Discounting MethodsChoice of Discount MethodConsistency of the CAPM with the Principle of Additivity of Investors' Risk-Return Exposures (as Proposition 2, Eq. (13.6))In-consistency of the FF-3F Model with the Principle of Additivity of Investors' Risk-Return Exposures as MM's proposition 2 (and Proposition 2, Eq. (13.6))The Capitalization Factors, qE and qDValuation of Imputation Tax CreditsTime for Reflection: What Have We Learned?

Keywords: Stock Markets; Investments; Corporate Finance; Mathematical Finance (search for similar items in EconPapers)
Date: 2015
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