glamour stock, good comparable, analysis, asset-based, pricing models,
Not what you're looking for?
1. A glamour stock is usually more under-valued than a value stock? (true or false)
2. What are three properties that make for a "good comparable"?
3. In what type of industry could you most justify an asset based valuation approach? Why?
4. Which of the typical multiple is better in your opinion - why?
5. Which of the steps involved in fundamental analysis is the most important in your opinion - why?
6. How is value created?
7. Is an over abundance of information (or information overload) as a weakness of the asset based valuation approach?
8. Do asset pricing models give (asset prices or required rates of return)?
9. The multiples approach is (better or worse) than the fundamental analysis valuation approach?
10. The payment of a dividend (increases or decreases) the market price of the stock (in a fully informed market with no information signaling effect)?
Purchase this Solution
Solution Summary
The expert examines glamour stock, good comparable, analysis and asset-based pricing.
Solution Preview
Answer:
1. A glamour stock is usually more under-valued than a value stock? (true or false)
Its false that glamour stock usually more under valued than the value stock because glamour stock are those stock that have been bid up and has selling price higher relative to its comparables like cash flow, book value and earning multiples.
2. What are three properties that make for a "good comparable"?
Three properties that make for a good comparable are:
(1) Select a half dozen comparable firms from the industry and use the group median multiple of interest for valuation
(2) Select the companies that are most similar and a direct competitor of the company in valuation
(3) Use aggregate market multiples if there are insufficient number of similar firms available for comparison.
3. In what type of ...
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
Recent Feedback
- "I've posted a similar question for another course. It's post 657940, and it's a practice problem that I'd like to use for the final exam. Your help will be greatly appreciated. "
- "thank you!"
- "Thank you again Jayant. You are super fast. "
- "Thank you Jayant. You are appreciated. "
- "Again, thank you Jayant. You are wonderful. "
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.