Discounted Cash Flow

A Theory of the Valuation of Firms

Lutz Kruschwitz, Andreas Löffler - Collection Wiley Finance

178 pages, parution le 10/11/2005

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Résumé

Firm valuation is currently a very exciting topic. It is interesting for those economists engaged in either practice or theory, particularly for those in finance. The literature on firm valuation recommends logical, quantitative methods, which deal with establishing today's value of future free cash flows. In this respect firm valuation is identical with the calculation of the discounted cash flow, DCF. There are, however, different coexistent versions, which seem to compete against each other. Entity approach and equity approach are thus differentiated. Acronyms are often used, such as APV (adjusted present value) or WACC (weighted average cost of capital), whereby these two concepts are classified under entity approach.

Why are there several procedures and not just one? Do they all lead to the same result? If not, where do the economic differences lie? If so, for what purpose are different methods needed? And further: do the known procedures suffice? Or are there situations where none of the concepts developed up to now delivers the correct value of the firm? If so, how is the appropriate valuation formula to be found? These questions are not just interesting for theoreticians; even the practitioner who is confronted with the task of marketing his or her results has to deal with it. The authors systematically clarify the way in which these different variations of the DCF concept are related throughout the book

L'auteur - Lutz Kruschwitz

Lutz Kruschwitz (pictured left) is chair of Banking and Finance at the Freie Universität in Berlin. He was born in 1943 in Berlin, Germany, and is a graduate in economics from the Freie Universität in Berlin. His research interest include investment and valuation theory in particular. He has written several bestselling german finance textbooks.

L'auteur - Andreas Löffler

Andreas Löffler is chair of Banking and Finance at the Universität of Hannover. He was born in 1964 in Szeged, Hungary, and is a graduate in mathematics and economics from Universität Leipzig and Freie Universität Berlin. His research interest include decision theory and valuation theory. He has published in a number of academic journals.

Sommaire

Basic Elements 1
Corporate income tax
Personal income tax
Corporate and personal income tax
Appendix: Proofs

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Caractéristiques techniques

	PAPIER
Éditeur(s)	Wiley
Auteur(s)	Lutz Kruschwitz, Andreas Löffler
Collection	Wiley Finance
Parution	10/11/2005
Nb. de pages	178
Format	17 x 25,5
Couverture	Relié
Poids	480g
Intérieur	Noir et Blanc
EAN13	9780470870440
ISBN13	978-0-470-87044-0