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Persistent link: https://www.econbiz.de/10010490107
Baker and Wurgler [2007] take a “top down” approach to behavioral finance and the stock market. Investor sentiment is taken to be exogenous and the focus is on its empirical effects. Sentiment is measurable and its waves have clearly discernible, important, and regular effects on firms and...
Persistent link: https://www.econbiz.de/10012904481
Given the sensitivity of stock valuation models to the discount rate k*, it follows that their operational usefulness is significantly dependent upon the accuracy of the estimate of k*. The purpose of this study is to illustrate the use of the geometric mean to estimate k*. The usual approach to...
Persistent link: https://www.econbiz.de/10013021673
The theoretical valuation model has been shown to be mathematically equivalent to a price-earnings approach to stock valuation. The theoretical model explicitly includes estimates of long-run dividend (or earnings) growth. Because the price-earnings ratio approach is equivalent, it also...
Persistent link: https://www.econbiz.de/10013021978
Persistent link: https://www.econbiz.de/10013024172
Baker and Wurgler [2007] take a “top down” approach to behavioral finance and stock market. Investor sentiment is taken to be exogenous and the focus is on its empirical effects. Sentiment is measurable and its waves have clearly discernable, important, and regular effects on firms and the...
Persistent link: https://www.econbiz.de/10013034570
The exhibits support several conclusions we can draw from use of the Williams and Brigham-Pappas dividend growth models. The particular model selected to describe a stock's dividend time path has a great impact on the stock's identified value. This may be seen in the large differences in stock...
Persistent link: https://www.econbiz.de/10013036813