Proper Valuation of Perpetuities in an Inflationary Environment Without Real Growth

Valuation in an Inflationary Environment

Using illustrative examples, this paper shows that the Net Present Value for project evaluation should be based on estimates of free cash flows at nominal prices. It is a widespread practice to evaluate projects at constant or real prices. These days, the use of constant or real prices is an unnecessary oversimplification. In particular, we present an example where the results from the constant...

NEW MORTGAGE DESIGNS an INFLATIONARY ENVIRONMENT

Mergers and market valuation: real options approach

This paper investigates the connection between market valuation anda type of the merger (stock, cash) using real options setup. I solveexplicitly for the timing and terms of cash mergers in two deferent settingsto demonstrate that cash mergers generally occur at low marketvaluations, whereas stock mergers that may be observed at both low andhigh valuations; the result holds with some dierences ...

development and implementation of an optimized control strategy for induction machine in an electric vehicle

in the area of automotive engineering there is a tendency to more electrification of power train. in this work control of an induction machine for the application of electric vehicle is investigated. through the changing operating point of the machine, adapting the rotor magnetization current seems to be useful to increase the machines efficiency. in the literature there are many approaches wh...

An organ system without a proper name

As every high-school graduate knows, animals are classified into two large groups ñ those that have vertebrae and those that do not. What every high-school graduate should also know (but probably doesnít) is that the vertebrates are further divided into jawless (Agnatha) and jawed (Gnathostomata). The jawed vertebrates are distinguished not only by the possession of jaws, but also by a suite of...