Page 1 of 4 123 ... LastLast
Results 1 to 10 of 35

Thread: Solution for Investments by BKM (Bodie, Kane, Marcus) ??

Hybrid View

  1. #1
    Junior Member
    Join Date
    Sep 2009
    Posts
    2
    Rep Power
    0

    Solution for Investments by BKM (Bodie, Kane, Marcus) ??

    Hi friends,

    if anyone could please share the solution for the BKM book or ateast the answer key.

    Thanks,
    VC

  2. #2
    Senior Member
    Join Date
    Aug 2009
    Posts
    192
    Rep Power
    11

    Re: Solution for Investments by BKM (Bodie, Kane, Marcus) ??


  3. #3
    Junior Member
    Join Date
    Sep 2009
    Posts
    2
    Rep Power
    0

    Re: Solution for Investments by BKM (Bodie, Kane, Marcus) ??

    Hey Neetu,

    Many thanks.. its the thing that i was looking for....

    thanks again
    Varun

  4. #4
    Senior Member
    Join Date
    Aug 2009
    Posts
    192
    Rep Power
    11

    Re: Solution for Investments by BKM (Bodie, Kane, Marcus) ??

    Welcome Varun!


    If you find something better, please post it here.

  5. #5
    Junior Member
    Join Date
    Mar 2015
    Posts
    1
    Rep Power
    0

    Solution for Investments by BKM (Bodie, Kane, Marcus) ?

    Quote Originally Posted by neetu View Post
    Welcome Varun!


    If you find something better, please post it here.
    Neetu please i need this solution manual .tried ur stated link but not found. can u email me at fahad_najeeb83@yahoo.com

  6. #6
    Junior Member
    Join Date
    Aug 2009
    Posts
    2
    Rep Power
    0

    Unhappy Doubts in Finance

    I was working on valuation of high growth companies.
    When I calculate the Terminal value, the formula used is:

    Final Cash Flow(1+g)/(k-g)

    where k = Discount Rate
    and g = Long-Term Cash Flow Growth Rate

    In my case, k = 8% and g is 10%, this generally doesn't happen and my valuation is -ve.

    I am not sure where I am making some mistake. Any ideas???

  7. #7
    Junior Member
    Join Date
    Aug 2009
    Posts
    8
    Rep Power
    10

    Re: Doubts in Corporate Finance

    I am not sure if your assumptions are right or not.
    Isn't a growth rate of 10% too high?

    I guess you can try verifying those rates... :?:

  8. #8
    Junior Member
    Join Date
    Aug 2009
    Posts
    8
    Rep Power
    10

    Re: Doubts in Corporate Finance

    Did you try to use comparable co.s method to see how much terminal value you get?

  9. #9
    Senior Member
    Join Date
    Jun 2009
    Location
    Mumbai
    Posts
    83
    Rep Power
    12

    Re: Doubts in Corporate Finance

    Hi Ritesh,

    The formula that you are using comes from a sum of a Geometric Progression. If you go back to the derivation of this formula, the basic assumption is k>g.

    So, in your case the formula is not valid because k<g.

    - Sougata

  10. #10
    Senior Member
    Join Date
    Aug 2009
    Posts
    192
    Rep Power
    11

    Re: Doubts in Corporate Finance

    That was an interesting question and a good answer!

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •