Identifying the Marginal Investor
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The marginal investor in a firm is the investor who is most likely to be trading at the margin and therefore has the most influence on the pricing of its equity. In some cases, this may be a large institutional investor, but institutional investors themselves can differ in several ways. The institution may be a taxable mutual fund or a tax-exempt pension fund, may be domestically or internationally diversified, and vary on investment philosophy. In some cases, the marginal investors may be...
- A
- Different System for Disciplining Management Corporate Governance
- Equity
- Real World Focus
- Resource Guide
- The Capital Asset Pricing Model
- Aa - 2
- Aaa
- Accounting Principles Underlying Asset Measurement
- Accounting Principles Underlying Liability and Equity Measurement
- Accounting Principles Underlying Measurement of Earnings and Profitability
- Actual and Synthetic Ratings
- Apply Apply
- Assessing Accounting Return Approaches
- Asset Measurement and Valuation
- The Arbitrage Pricing Model
- Bank Debt
- Bb - 2
- Bbb
- Bond Ratings and Interest Rates
- Bonds
- Building in Capital Rationing Constraints into Analysis
- C
- Hybrid Securities
- Imj
- Lmq
- Time Weighted versus Nominal Cash Flows
- Udy
- Calculating the Cost of Other Hybrid Securities
- Calculating the Weights of Debt and Equity Components
- Can financing weights change over time
- Can laws make companies good citizens
- Capital Rationing
- Capital Structure Overview Of The Financing Decision
- Cash Flow Based Decision Rules Payback
- Cash Flows on Options
- Cd
- Cdtt
- Cf - 2 3
- Changing Discount Rates and NPV
- Choosing an alternative objective
- Choosing between Dividends and Equity Repurchases
- Choosing the Right Financing Instruments
- Choosing the Right Objective
- Choosing the Right Valuation Model
- Comparing Net Present Values
- Comparing NPV and IRR
- Conclusion - 2 3 4 5 6 7 8
- Conclusions
- Constrained Cost of Capital Approaches
- Contingent Value Rights
- Corporate Bond Markets and the use of debt
- Corporate Strategy and Project Quality
- Correlations and Covariances
- Cost of Capital Approach
- Cost of Debt for Projects
- Cost of Delay and Early Exercise
- Cost of Equity for Projects
- Costs of Debt and Equity
- Current Assets
- Current Liabilities
- D
- Dcn
- Pmb
- Xwe
- Ykp
- Data Distributions
- Debt as a Discplining Mechanism
- Debt creates agency costs
- Debt may make managers more disciplined
- Default Risk and Interest rates
- Differences between Incremental and Total Cashflows
- Different Depreciation Methods for Tax Purposes and for Reporting
- Discounted Cash Flow Valuation
- Dividends reduce managerial discretionpower
- Do you live in a meanvariance world
- Ebit - 2 3
- Ebitda
- Efficient Risk Taking
- Eps - 2
- Equity Debt and Cost of Capital for Banks
- Equity Debt and Net Present Value
- Equity Risk and Expected Returns
- Equity Valuation versus Firm Valuation
- Estimating and using the cost of capital
- Estimating Regression Parameters
- Exclusive Rights and the Option Feature
- Expected Return Returns - 2
- Fcfe
- Financing Choices and a Firms Life Cycle
- Financing Mix and Cost of Capital for Projects
- Firm Valuation and Leverage
- Firm Value and Overpayment on Acquisitions
- Firms and Financial Markets
- From Accounting Earnings to Cashflows
- From Cost of Equity to Cost of Capital
- From Simple to Multiple Regressions
- G
- General Subscriptions
- Getting Information about Current Financing Choices
- Getting Information about optimal capital structure
- Getting Information for valuation
- Getting Information on Competitive Strengths and Excess Returns
- Getting Information on mechanics of capital structure
- Getting Information on Risk and Return
- Growing Annuities
- H
- Historical Average and Projected Returns on Capital
- How Firms Choose their Capital Structures
- I
- 1
- Evk
- Measuring Risk
- Nmw
- Return on Assets ROA Return on Capital ROC
- Snp
- Compounding a Cash Flow
- Return on Equity
- Measuring Market Risk
- Size Revenue Objectives
- Profit Maximization Objectives
- Tax Implications
- Implications - 2
- Implications of the Expansion Option
- In Practice A Financing Checklist for Classifying Securities
- In Practice A Simple Approach to Decomposing Debt and Equity
- In Practice Adjusted Present Value APV
- In Practice Are strategic considerations really options
- In Practice Can you add value while doing good
- In Practice Customized Bonds
- In Practice Dealing with Accounting Returns
- In Practice Economic Value Added EVA
- In Practice Equity Repurchase and the Dilution Illusion
- In Practice Estimating Expected Revenues and Cash flows
- In Practice Estimating only downside risk
- In Practice Exchange Rate Risk Political Risk and Foreign Projects
- In Practice How do you buy back stock
- In Practice Investment Grade and Junk Bonds
- In Practice Is there a payoff to better corporate governance
- In Practice Leasing versus Borrowing
- In Practice Managing Earnings
- In Practice Normalizing Operating Income
- In Practice Optimal Debt Ratios for Private Firms
- In Practice Proxy Fights
- In Practice Ratings Changes and Interest Rates
- In Practice Reconciling your value with the market price
- In Practice Risk Cost of Equity and Private Firms
- In Practice Security Innovation and Changing Capital Structure
- In Practice Stakeholder Wealth Maximization and Balanced Scorecards
- In Practice The Underpricing of IPOs
- In Practice The Value of Control
- In Practice The Value of Synergy Disneys Animated Movies
- In Practice Using A Higher Hurdle Rate
- In Practice Valuing Financial Flexibility as an option
- In Practice What Is A Stable Growth Rate
- In Practice Who should diversify The Firm or Investors
- In Practice Who Will Pay The Sunk Costs
- In Summary
- Individuals
- Info - 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138
- Institutional Investors
- Intangible Assets
- Internal Rate of Return
- Investing in Other Business Lines
- Investments Financial and Marketable Securities
- Irr2088 - 2
- Is this debt or is it equity
- Estimating the Cost of Equity
- L
- L 1 rn 1J
- Leases
- Liabilities
- Live Case Study
- Live Case Study Analyzing A Firms Current Financing Choices
- Live Case Study Analyzing A Firms Existing Investments
- Live Case Study I Corporate Governance Analysis
- Live Case Study Mechanics of Moving to the Optimal
- Live Case Study Valuation
- Market Fundamental and Accounting Betas Which one do we use
- Matching Liabilities to Assets
- Measures of Profitability
- Measuring Accounting Earnings and Profitability
- Measuring Asset Value
- Measuring Earnings and Profitability
- Measuring Return On Investments
- Measuring Returns The Choices
- Multiple Businesses with Different Risk Profiles Project Risk similar within each Business
- Multiple Stakeholders and Conflicts of Interest
- Mutually Exclusive Projects
- Mutually exclusive projects with different risk levels - 2
- No change gradual change or immediate change
- No Optimal Capital Structure
- Obtaining The Inputs For Option Valuation
- Opportunity Costs
- Opportunity Costs of Resources with no Current Alternative
- Option Pricing
- Optionlinked Bonds
- Options Embedded in Projects
- Practical Considerations - 2
- Prerequlslt Comp Leiiientiiry Independent Mutually Exclusive
- Private Firm Expansion Raising Funds from Private Equity
- Private Placements
- Product Cannibalization
- Product Cannibalization at Disney
- Profitability Index
- Project A
- Project Interactions Side Costs And Side Benefits
- Project Synergy
- Projects with Different Lives
- Projects with Different Risk Profiles
- Projects with Equal Lives
- Quality of Management and Project Quality
- Questions
- Questions and Exercises
- Rationality and Stock Price Effects
- Reasons for Capital Rationing Constraints
- Reasons for Stock Buybacks
- Reconciling Different Valuations
- Refinements on the Operating Income Approach
- Regression Assumptions and Constraints
- Resource with a current alternative use
- Return on Capital
- Returns on Capital and Equity for Entire Firms
- Rights Offerings
- Risk is in the eyes of the beholder
- Risk Measurement And Hurdle Rates
- Roc
- S
- Shelf Registrations
- Side Costs from Projects
- Simple Cash Flows
- Single Business Project Risk similar within business
- Special Features and Interest Rates
- Standardized Values and Multiples
- Staying Private versus Going Public
- Step 1 Measuring Cash Available to be returned to Stockholders
- Steps in an initial public offering
- Steps in the Adjusted Present Value approach
- Stock Buybacks Return on Capital and EVA
- Stockholder Interests Managerial Interests and Management Buyouts
- Stockholders and Managers
- Summary
- Summary Statistics
- Sunk Costs and Opportunity Costs
- Synergy in Acquisitions
- T11 WACCt where
- Tests for Expansion Option to have Value
- The Annual Meeting
- The Argument for Incremental Cash Flows
- The Basics Of Risk
- The Birdinthe Hand Fallacy
- The Board of Directors
- The Case for an Optimal Capital Structure
- The Case for Cash Flows
- The Case for Timeweighted Returns
- The Choices for a Publicly Traded Firm
- The Choices Types of Financing
- The Classical Objective
- The Components of Risk
- The Consequences of Debt Irrelevance
- The Consequences of Stockholder Powerlessness
- The Consequences of Stockholder Bondholder Conflicts
- The Contribution of the Miller Modigliani Theorem
- The Cost of Debt
- The Costs of Debt
- The Costs of Going Public
- The Determinants of Default Risk
- The Dividend Payment Time Line
- The Dividends Are Bad School
- The Effects of Debt Financing on Cashflows to Equity
- The Effects of Diversification on Venture Capitalist
- The Effects of Working Capital
- The Firm and Society
- The Firm Structural Set up
- The Foundations
- The Intuitive Basis for Present Value
- The Irrelevance of Debt in a Taxfree World
- The Objective In Decision Making
- The Optimal Financing
- The Option to Abandon a Project
- The Option to Delay a Project
- The Payoffs to the Option to Expand
- The Process of Raising Capital
- The Replacement Decision A Special Case of Mutually Exclusive Projects
- The Risk in Borrowing Default Risk and the Cost of Debt
- The Role of Acquisitions
- The Significance of a positive Net Present Value
- The Source of the Conflict - 2
- The Tradeoff in a Balance Sheet Format
- Timing of Tax Payments
- Ttw
- Tv
- U g
- Underlying Assumptions in Comparable Valuation
- Upside and Downside Risk
- Us
- Using Regressions
- Using the firms hurdle rate for individual projects
- Using up excess debt capacity reduces financial flexibility
- V - 2
- Implications for Agency Costs
- Valuation Principles And Practice
- Value Enhancement
- Valuing an Initial Public Offering
- Venture Capital and Private Equity
- Wacc And Firm Value As A Function Of Leverage
- Warrants
- What are research and development expenses
- What do you think the objective of the firm should be
- What is a project
- Why are accounting earnings different from cashflows
- Why cash flows across time are not comparable
- Why Firms may pay out less than is available
- X
- Vx Y VY
- Y
- Yx
