Find Flashcards
Why It Works
More
Educators
Businesses
Academy
About

Brainscape's Knowledge Genome^TM

Browse over 1 million classes created by top students, professors, publishers, and experts.

Entrance Exams
Professional Certifications
Foreign Languages
Medical & Nursing
Science
English
Humanities & Social Studies
Mathematics
Law
Vocations
Health & Fitness
Business & Finance
Technology & Engineering
Food & Beverage
Fine Arts
Random Knowledge

See full index

L2 31 Return Concepts > e describe strengths and weaknesses of methods used to estimate the required return on an equity investment; > Flashcards

e describe strengths and weaknesses of methods used to estimate the required return on an equity investment; Flashcards

L2 31 Return Concepts (8 decks)

a distinguish among realized holding period return, expected holding period return, required return, return from convergence of price to intrinsic value, discount rate, and internal rate of return;

b calculate and interpret an equity risk premium using historical and forward-looking estimation approaches;

c estimate the required return on an equity investment using the capital asset pricing model, the Fama–French model, the Pastor–Stambaugh model, macroeconomic multifactor models, and the build-up method (e.g., bond yield plus risk premium);

d explain beta estimation for public companies, thinly traded public companies, and nonpublic companies;

e describe strengths and weaknesses of methods used to estimate the required return on an equity investment;

f explain international considerations in required return estimation;

g explain and calculate the weighted average cost of capital for a company;

h evaluate the appropriateness of using a particular rate of return as a discount rate, given a description of the cash flow to be discounted and other relevant facts.

Key Links
Subjects
Company
- About Us
- Earn Money!
- Academy
- Swag Shop
- Contact
- Terms
- Podcasts
Find Us

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions