Christensen, Peter O.; Feltham, Gerald A. - In: Foundations and Trends(R) in Accounting 4 (2009) 1, pp. 1-112
We review and critically examine the standard approach to equity valuation using a constant risk-adjusted cost of capital, and we develop a new valuation approach discounting risk-adjusted fundamentals, such as expected free cash flows and residual operating income, using nominal zero-coupon...