INDICE: Foreword. Preface. About the Author. Chapter 1. Introduction. Theoretical Precision or Theoretical Resilience? Practical Difficulties as Well. Overview of Our Analysis. Chapter 2. Inflation Protected Bonds as a Valuation Template. The Formulas Behind the Intuition. TIPS versus Traditional Fixed-Rate Bonds Measuring the Differences. A Peek Ahead. Chapter 3. Valuing Uncertain, Perpetual Income Streams. The Mathematical Development of Un-leveraged Firm Valuation. What Does the Valuation Formula Tell Us About Sensitivity to Inflation? Sensitivity to Real Discount Rates and Growth Factors. The Comparison with aTraditional Model of Firm Valuation. Chapter 4. Valuing a Leveraged Equity Security. Leverage in the Presence of Corporate Income Taxes. From Theory to Practice Valuing an Enterprise When the Discount Rates are Known From Theory to Practice Part II ‘Reverse Engineering’ or Inferring Discount Rates from Observed Market Prices. Chapter 4 Supplement: The Relationship between the Leveraged Equity Discount Rate and the Debt to Capital Ratio for Highly Leveraged Companies. Chapter 5. Case Studies in Valuation during the Recent Decade. Case 1: Coca-Cola (‘KO’). Case 2: Intel (‘INTC’). Case 3: Procter Part I. Extracting Expected Equity Returns from Observed Price/Earnings Ratios Part II. Extracting Expected Equity Returns from Observed Price/Earnings Ratios Part III. Creating Efficient Portfolios The Unconstrained Case. Creating Efficient Portfolios TheCase Where Asset Weights Are Required To Be Non-Negative. Computing the Variance/Covariance Matrix Inputs. Chapter 10. Selecting among Efficient Portfolios; Making Dynamic Rebalancing Adjustments. Reconciling Portfolio Desirability and Feasibility. Turning Theory into Easily Calculated Results. Adjusting for Changes in Long-Term Expected Returns on Common Equity. Adjusting for More General Changes in Risk-Adjusted Expected Returns. Recapitulation and an ImportantCaveat. Chapter 11. How Did We Arrive Here Historically? Where Might We Go Prospectively? The Next Crises of Confidence. Some Answers Begin to Emerge. Whatif Everyone Followed this Type of Model and Investing? The Next Steps. Appendix A. Mathematical Review of Growth Rates for Earnings, Dividends, and Book Value per Share. Constant Growth Rate Characterization. Transition from One Long-Term Growth Rate to Another. Focus on Share Growth Impacts. Appendix B. Sustainable and Non-Sustainable Inflation Rates. The Impact of Monetary Policy and Interest Rates on Price Level Changes. The Impact of ‘Real Shocks’ on MeasuredPrice Level Changes. Drawing Correct Inferences. Appendix C. Deriving the ‘Equity Duration’ Formula. Appendix D. The Traditional Growth/Equity Valuation Formula. Appendix E. Adjustments Required to the Traditional Growth/Equity Valuation Formula in Order to Preserve Inflation Neutrality. Appendix F. Brief Recapitulation of the Miller 1977 Capital Structure Irrelevance Theorem. Appendix G. Time Series Charts of Un-leveraged, Inflation Adjusted Discount Rate Estimates. Appendix H. Comparison of Volatility of Pre-Tax and After-Tax Income. Appendix I. Relationship between Observed P/E Ratios and Nominal Interest Rates. Appendix J. Additional Background on Mathematical Optimization Subject to Constraint Conditions. Appendix K. Derivation of Asset Class Covariances. AppendixL. Expected Return and Variance/Covariance Inputs Underlying Chapter 9 and Chapter 10 Portfolio Examples. Bibliography. Index.
- ISBN: 978-0-470-22640-7
- Editorial: John Wiley & Sons
- Encuadernacion: Cartoné
- Páginas: 304
- Fecha Publicación: 13/06/2008
- Nº Volúmenes: 1
- Idioma: Inglés