llustrate illiquidity risk and small cap premium
My investment bank told me that beta given by Bloomberg incorporates the illiquidity risk and small cap premium since Bloomberg does well-known Bloomberg adjustment formula. Is it true?
Expert
No. The well-known “Bloomberg adjustment formula” is an arbitrary adjustment within order to converge computed betas to 1 and contains multiplying the calculated beta with 0.67 and adding 0.33 to this. Adj. Beta = 0.67 x raw beta + 0.33. This is significant to point out that such adjustment is fully arbitrary.
I do not know the meaning of Working Capital Requirements. I think this should be same to Working Capital (Current Assets – Current Liabilities). There am I right?
financial engineering examples,benifits,disadvantages
A court assigned to me (as an auditor and economist) a valuation of a market butcher’s. The butcher’s did not give any simple income statements or any valuable information that I could use in my valuation. This is a small business with just two workers, th
How can any industrial company inflate the value of its inventory so as to decrease net income and the taxes is has to pay in a year?
Is this true that a company creates value for its shareholders in a year when this distributes dividends or when the quotation of the shares increases?
Is this possible to value companies by computing the present value of the Economic Value Added (EVA)?
Brittney and Kim Wan Sun have successfully launched a successful talent agency, ABC. They expect the firm’s earnings and dividends to grow by 20% annually for the next 10 years and they establish a strong base and to grow at a constant 5% per year thereafter. AB
Could we explain that the shares’ value is intangible?
Is PER an excellent guide to investments?
What is the market risk premium within Spain at the present time – the number that I have to use in the valuations?
18,76,764
1955490 Asked
3,689
Active Tutors
1441475
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!