Firm, Equity Asset, and Fixed Income Securities Valuation

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.

Covers time value of money, financing and cost of capital, valuation of fixed-income securities, and firm valuation Features South African companies alongside European and American companies Uses practical examples with illustrated concepts and solutions for each valuation context

Autorentext

Vusani Moyo is an Associate Professor at the University of Venda, South Africa. He holds a PhD in Financial Management Sciences from the University of Pretoria, an MSc in Finance from the University of Leicester School of Management, an MBA in Finance from the University of Manchester Business School, and a BA (Hons) in Accounting and Finance (First Class) from the University of Derby. Vusani is also a Chartered Certified Accountant, a Chartered Management Accountant, and an ICAEW-Chartered Accountant. His current research interests include the capital structure of African financial and non-financial firms, cash flow sensitivity of cash, green banking, green finance, investment cash flow sensitivity of cash, cost of capital, dividend policy, and firm and equity asset valuation.

Klappentext

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.

Vusani Moyo is an Associate Professor at the University of Venda, South Africa. He holds a PhD in Financial Management Sciences from the University of Pretoria, an MSc in Finance from the University of Leicester School of Management, an MBA in Finance from the University of Manchester Business School, and a BA (Hons) in Accounting and Finance (First Class) from the University of Derby. Vusani is also a Chartered Certified Accountant, a Chartered Management Accountant, and an ICAEW-Chartered Accountant. His current research interests include the capital structure of African financial and non-financial firms, cash flow sensitivity of cash, green banking, green finance, investment cash flow sensitivity of cash, cost of capital, dividend policy, and firm and equity asset valuation.

Inhalt

Chapter 1: Introduction.- Chapter 2: The Basics Of Time Value Of Money.- Chapter 3: Valuation Of Cash Flows, Annuities And Perpetuities.- Chapter 4: Sources And Cost Of Long-Term Capital.- Chapter 5: Valuation Of Fixed Income Securities.- Chapter 6: Valuation Of Equities.- Chapter 7: Firm And Equity Valuation Using Free Cash Flow Models.- Chapter 8: Valuation Using The Residual Income Valuation Model.- Chapter 9: Valuation Using Multiples.