There is a lot of confusion among practitioners about valuing firms and investment projects. At the first sight, the discounting procedure is a simple and routine task which does not involve much effort. But actually even in simple cases accurate valuation requires attention to plenty of...

The purpose of the study is to contemplate different approaches to the problem of reinvesting retained earnings in order to construct an adequate financial model. Actually, an optimistic forecast may imply exponential growth of income through reinvestment of retained earnings. If the retained...