| Author: | Andre Wiedenhofer | ISBN: | 9783638799683 |
| Publisher: | GRIN Publishing | Publication: | June 23, 2007 |
| Imprint: | GRIN Publishing | Language: | English |
| Author: | Andre Wiedenhofer |
| ISBN: | 9783638799683 |
| Publisher: | GRIN Publishing |
| Publication: | June 23, 2007 |
| Imprint: | GRIN Publishing |
| Language: | English |
Seminar paper from the year 2007 in the subject Business economics - Accounting and Taxes, grade: B, University of Applied Sciences Essen (IOM), course: Financial Management (MBA), 36 entries in the bibliography, language: English, abstract: This paper investigates the shareholders' possibility to evaluate firm's value. The fact, that due to the different objectives of the shareholders and the managers, the shareholder value is a suitable figure to synchronize different interests will be shown. Having shown two approaches to calculate shareholder value, these approaches will be assessed, if they provide a suitable calculation of the shareholder value. The discounted cash-flow approach (DCF), basing on prospective cash-flows, is a suitable method to determine shareholder value. The realoption approache extends the DCF-approach by the flexibility component. Regarding the occasions of evaluation, the calculating shareholder can use both approaches, but he has to be sure about the approaches' boundaries.
Seminar paper from the year 2007 in the subject Business economics - Accounting and Taxes, grade: B, University of Applied Sciences Essen (IOM), course: Financial Management (MBA), 36 entries in the bibliography, language: English, abstract: This paper investigates the shareholders' possibility to evaluate firm's value. The fact, that due to the different objectives of the shareholders and the managers, the shareholder value is a suitable figure to synchronize different interests will be shown. Having shown two approaches to calculate shareholder value, these approaches will be assessed, if they provide a suitable calculation of the shareholder value. The discounted cash-flow approach (DCF), basing on prospective cash-flows, is a suitable method to determine shareholder value. The realoption approache extends the DCF-approach by the flexibility component. Regarding the occasions of evaluation, the calculating shareholder can use both approaches, but he has to be sure about the approaches' boundaries.
