The Debt-Equity Trade Off: The Capital Structure Decision

Aswath Damodaran 2 First Principles ■ Invest in projects that yield a return greater than the minimum acceptable hurdle rate. •The hurdle rate should be higher for riskier projects and reflect the financing mix used - owners' funds (equity) or borrowed money (debt) •Returns on projects ...


du Stern School of Business Aswath Damodaran - l Proposition ...

Aswath Damodaran 1 The Value of Control: Some General Propositions Aswath Damodaran Home Page: www.damodaran.com E-Mail: [email protected] Stern School of Business


Return on Capital (ROC), Return on Invested Capital (ROIC ...

1 Return on Capital (ROC), Return on Invested Capital (ROIC) and Return on Equity (ROE): Measurement and Implications Aswath Damodaran Stern School of Business July 2007


! Spring 2012 ! Aswath Damodaran! - ! An Introduction to ...

Aswath Damodaran! 2! Some Initial Thoughts! " One hundred thousand lemmings cannot be wrong"! !Graffiti! We thought we were in the top of the eighth inning, ! when we were in the bottom of the ninth.. !


Value Multiples

Aswath Damodaran 2 Value/Earnings and Value/Cashflow Ratios ■ While Price earnings ratios look at the market value of equity relative to earnings to equity investors, Value earnings ratios look at the market value of the firm relative to operating earnings.


Estimating Terminal Value

Aswath Damodaran 3 Ways of Estimating Terminal Value Terminal Value Liquidation Value Multiple Approach Stable Growth Model Most useful when assets are separable and marketable Easiest approach but makes the valuation a relative valuation Technically soundest, but requires that you make ...


Damodaran Krishnan Achary

Damodaran Krishnan Achary Education: 1993 - 1996 B.Sc. Chemistry University of Madras, India. 1996 - 1998 M.Sc. Physical chemistry University of Pune, India. 1998 - 2001 Ph.D. Chemistry National Chemical Laboratory, India.


The Cost of Illiquidity

Aswath Damodaran 2 What is illiquidity?  The simplest way to think about illiquidity is to consider it the cost of buyer's remorse: it is the cost of reversing an asset trade almost instantaneously after you make the trade.  Defined thus, all assets are illiquid.




Suggested Problem Solutions Investment Valuation - Damodaran

Suggested Problem Solutions Investment Valuation - Damodaran Lecture 6 - Relative Valuation CHAPTER 17 - FUNDAMENTAL PRINCIPLES OF RELATIVE VALUATION 1.


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