FINA 410 Study Guide - Midterm Guide: Chinese Wall, Dividend Yield, Working Capital
15 Dec 2016
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What is the i(cid:374)put that (cid:449)e do(cid:374)"t k(cid:374)o(cid:449) i(cid:374) (cid:271)la(cid:272)k sho(cid:449)s for(cid:373)ula: stock price, exercice price, standart deviation of stock return, dividend yield. We do(cid:374)"t k(cid:374)o(cid:449) the (cid:448)olatility, (cid:271)e(cid:272)ause of ti(cid:373)e horizo(cid:374) how many data to take into consideration. Chinese wall between analyst and portfolio manager so no conflict of interest. When company has a high net income it is not sustainable because competition kick in and decrease ni. 2-stage ddm (3 parameters: time, the high ni has a (re: extraordinary growth rate, the love ni (rs : stable growth rate) H-model (5 parameters) most realistic model: smooth decrease from high to low ni, parameters: time re slope rs. ***financial accounting: material in exam damodaran chapter 3*** (p. 3) the 4 financial statement: statement of income, balance statement, statement of cf. Fina 410 fall 2016: statement of retained earnings (p. 6) gains/losses vs revenues/expenses. Gain: increase in the net assets created by an occurrence outside of primary operations.
