| Equity Valuation Contributor(s): Christensen, Peter O. (Author), Feltham, Gerald A. (Author) |
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ISBN: 1601982720 ISBN-13: 9781601982728 Publisher: Now Publishers OUR PRICE: $80.75 Product Type: Paperback - Other Formats Published: September 2009 |
| Additional Information |
| BISAC Categories: - Business & Economics | Finance - General - Business & Economics | Accounting - General - Business & Economics | Economics - Microeconomics |
| Dewey: 658.15 |
| Series: Foundations and Trends(r) in Accounting |
| Physical Information: 0.27" H x 6.14" W x 9.21" (0.41 lbs) 126 pages |
| Descriptions, Reviews, Etc. |
| Publisher Description: Equity Valuation reviews and critically examines the standard approach to equity valuation using a constant risk-adjusted cost of capital and develops a new valuation approach discounting risk-adjusted fundamentals using nominal zero-coupon interest rates. Equity Valuation is organized as follows. Chapter 2 (Risk-adjusted Discount Rates) reviews standard valuation models based on risk-adjusted discount rates. Chapter 3 (Multi-period Asset Pricing Theory and Accounting Relations) examines key results from multi-period asset pricing theory in discrete-time, and shows how equity valuation models can equivalently be based on free cash flows or accrual accounting numbers. Based on these results, the authors derive an accounting-based multi-period equity valuation model presented in Chapter 4 (An Accounting-based Multi-period Equity Valuation Model) with equilibrium risk-adjustments determined by prices of aggregate consumption claims. Chapter 5 (Equity Valuation with HARA Utility) includes a general equilibrium analysis of a setting in which the investors have HARA utility, and aggregate consumption and residual operating income are jointly normally distributed. A set of appendices follows including Appendix B that extends the setting to preferences with external habit formation (which recently has gained popularity in asset pricing theory), and Appendix C, which discusses the relationship between risk-adjusted expected cash flows and certainty equivalents. |
