Stochastic Discounted Cash Flow

A Theory of the Valuation of Firms

by Lutz Kruschwitz, Andreas Löffler

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Book Description

This free book discusses firm valuation, which is of interest to economists, particularly those working in finance. Firm valuation comes down to the calculation of the discounted cash flow, often only referred to by its abbreviation, DCF. There are, however, different coexistent versions, which seem to compete against each other, such as entity approaches and equity approaches. Acronyms are often used, such as APV (adjusted present value) or WACC (weighted average cost of capital), two concepts classified as entity approaches.
This book explains why there are several procedures and whether they lead to the same result. It also examines the economic differences between the methods and indicates the various purposes they serve. Further it describes the limits of the procedures and the situations they are best applied to. The problems this book addresses are relevant to theoreticians and practitioners alike.

This open book is licensed under a Creative Commons License (CC BY). You can download Stochastic Discounted Cash Flow ebook for free in PDF format (3.2 MB).

Book Details

Subject
Economics and Finance
Publisher
Springer
Published
2020
Pages
256
Edition
1
Language
English
ISBN13
9783030370800
ISBN10
3030370801
ISBN13 Digital
9783030370817
ISBN10 Digital
303037081X
PDF Size
3.2 MB
License
CC BY

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