Company Valuation Under IFRS : Interpreting and Forecasting ...

Index of exhibits
Chapter One
1.1 Constant growth company accounts 4
1.2 Nominal dividend projection 5
1.3 Discounted dividend projection 6
1.4 Simple Co dividend discount model 7
1.5 Value versus growth 8
1.6 Possible cash flows (1) 9
1.7 Possible cash flows (2) 10
1.8 Company valuation sensitivities 12
1.9 Growth question 13
1.10 Price/book sensitivities 16
1.11 NOPAT and free cash flow 19
Chapter Two
2.1 Risks and returns 22
2.2 Probability distributions of returns 22
2.3 Binomial share price progression 23
2.4 Two stock portfolio 25
2.5 Diversification and risk 26
2.6 Capital market line 27
2.7 Security market line 30
2.8 Beta as measure of covariance 31
2.9 Estimating Betas 32
2.10 20th Century market risk premia 33
2.11 Capital value decomposition 35
2.12 Leverage and WACC 36
2.13 Impact of growth on values 36
2.14 Calculation of equity Beta 38
2.15 Leveraged assets 39
2.16 Conventional tax shelter calculation 41
2.17 APV for varying growth (1) 42
2.18 APV for varying growth (2) 43
2.19 APV/WACC – risk free debt 45
2.20 Iteration of WACC 46
2.21 APV/WACC – implied Beta of debt 49
2.22 APV/WACC – zero Beta of debt 51
2.23 Value build-up 53
2.24 Equity as call option 56
2.25 Debt as written put 57
2.26 Put-call parity 58
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