My name is Aswath Damodaran and I teach corporate finance and valuation at the Stern School of Business at New York University. I describe myself as a teacher first, who also happens to love untangling the puzzles of corporate finance and valuation, and writing about my experiences.
E-mail: [email protected]: Phone: (212) 998-0449: Fax: (212) 995-4003: Office: MEC 8-52: Homepage: www.stern.nyu.edu/~churvich
Phone: (212) 998-0367 Fax : Email: [email protected] Office: KMEC 9-89 44 West Fourth Street Suite 9-190 New York, NY 10012-1126
1 1 CHAPTER 3 UNDERSTANDING FINANCIAL STATEMENTS Financial statements provide the fundamental information that we use to analyze and answer valuation questions.
2 Project Evaluation Guidelines 2. What is project evaluation? Project evaluation is a methodology for assessing the economic, social, environmental and financial impact of proposed capital projects.
6 Differences in Accounting Rules The accounting rules used to measure earnings and record book value are different for financial service firms than the rest of the market, for two reasons.
FINC-UB.0043 Futures and Options Spring 2018 Part II: Option Pricing and Hedging; Advanced Topics ©2018 Figlewski 2
Aswath Damodaran 3 Ingredients of an Investment Philosophy Step 1: All investment philosophies begin with a view about how human beings learn (or fail to learn). Underlying every philosophy, therefore is a view of human frailty - that they learn too slowly, learn too fast,
2 Figure 1 Corporate Finance: First Principles As you look at the chapter outline for the book, you are probably wondering where the chapters on present value, option pricing, and bond pricing are, as well as the
Aswath Damodaran 7 Dealing with Negative Earnings When the earnings in the starting period are negative, the growth rate cannot be estimated. (0.30/-0.05 = -600%) There are three solutions: • Use the higher of the two numbers as the denominator (0.30/0.25 = 120%)
106 Risk free Rates in January 2020 Aswath Damodaran 106-5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% a v c n o e t g a $ l t d a $ n $ e y $ $ $ $ r t av n o o e i o l e h e o d g a a
Henry Kaufman Management Center Department of Economics 44 West Fourth Street, 7-90 New York, NY 10012 Phone: (212) 998-0876 Email: [email protected]
1 CHAPTER 5 REAL OPTION VALUATION The approaches that we have described in the last three chapters for assessing the value of an asset, for the most part, are focused on the negative effects of risk.
6 Cash Flow Types and Discounting Mechanics ¨There are five types of cash flows - •simple cash flows, •annuities, •growing annuities •perpetuities and •growing perpetuities • Most assets represent combinations of these cash flows. Thus, a conventional bond is a combination of an annuity (coupons) and a simple cash flow (face value at
Spring 2019 Name: 1 Corporate Finance: Final Exam Answer all questions and show necessary work. Please be brief. This is an open books, open notes exam.
1 CHAPTER 6 MARKET EFFICIENCY – DEFINITION, TESTS AND EVIDENCE What is an efficient market? What does it imply for investment and valuation
3 The notion that the value of a business is a function of its expected cash flows is deeply engrained in finance. To generate these cashflows, though, firms have to raise and
Figure 1. 1000 Draws on the Unit Square (from Bhat (2001)) 2. An Intuitive Description of Mixed Logit5 Like any random utility model of the discrete choice family of models, we assume that a sampled
Checklist for DCF Valuation Item These might be useful.. Try these data sets/ spreadsheets 1. Pick a firm Negearn.xls: Contains money losing firms
≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈≈ MULTIPLE REGRESSION BASICS ...