ebook9783031605307d4325

Description

This textbook¬†begins by introducing the concept of the time value of money¬†and explaining how it is applied in valuation. It then uses practical and easy-to-understand examples to illustrate the application of the time value of money concept in valuing cash flows, annuities, and perpetuities. This is followed by an in-depth discussion of the firm’s financing sources and the determination of its cost of capital. The remainder of the textbook discusses the valuation of fixed-income securities, equity assets, and the firm, featuring specific examples and case studies from¬†South Africa, Europe, and the Americas. Equity asset and firm valuation approaches discussed include variants of single and multiple-stage growth dividend discount models, free cash flows, residual income, and multiple valuation approaches. The practical examples and case studies equip students with the tools they need to¬†apply these valuation approaches.¬† Aimed at upper undergraduate and postgraduate accounting and finance students, this textbook discusses in which context each valuation approach is most appropriate. Electronic supplementary materials are available online by chapter.¬†