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Up::5
hi, ‘m new here. Just trying to add something here. For residual income valuation models, we do not have TV as such. Because over a period of time, ROE equal r and RI comes to nil. To derive value of RI over a period of time till it comes to nil, we apply persistence factor based on rate at which RI decreases. TV is applicable only when value is going to grow for infinite period which is not the case here.
Correct me, if ‘m on wrong track.
Up::3Hey,
One doubt about this question. Did anyone notice that previously outstanding shares had par value of $10 and newly issued shares has par value of $1. Still we are using total 8 mn as number of shares outstanding.
Should not difference of par value have any impact here?
Might be a dumb question……
Up::0not in 2.5 weeks time. ‘hv been preparing since a month but I was not aware about 300hours.com. Joined it just now. Much useful resource. Got clarity for few difficult concepts….
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