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The simulation-based company valuation values a company on the basis of the risks actually present in the company … without having to derive them from the capital market data. The simulation-based company valuation takes into account the … requirements and auditing standards for a company valuation. The simulation-based company valuation is an alternative to the CAPM …
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Turnovsky (1995) derives in a continuous-time model of a decentralized economy that the correct specification of the firm's objective function is to maximize the initial value of its outstanding securities. The firm value is the discounted flow of real earnings. For the discrete-time version of...
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We argue that buyout waves form in response to fluctuations in aggregate discount rates. In our model, discount rates alter the present value of cash flow improvements and the illiquidity premium demanded by buyout investors. We confirm our predictions empirically. Overall deal activity varies...
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