Chris Mercer

AUGUST 1, 2022

This eleventh post in the Deja Vu series involving restricted stock studies addresses an issue that is rarely mentioned in the context of the studies – of the impact of dividends on restricted stock discounts (RSDs). This 2008 version had information on 477 restricted stock transactions, up from 430 transactions in the 2004 version.

Dividends 52

Dividends Appraisal Marketability Start-ups 52

Musings on Markets

AUGUST 5, 2023

If you have been reading my posts, you know that I have an obsession with equity risk premiums, which I believe lie at the center of almost every substantive debate in markets and investing. How, you may ask, can equity risk premiums be that divergent, and does that imply that anything goes?

Risk Premium 78

Risk Premium Equity Start-ups Treasury 78

Musings on Markets

JANUARY 21, 2023

In this post, I will begin by chronicling the damage done to equities during 2022, before putting the year in historical context, and then examine how developments during the year have affected expectations for the future. Actual Returns Your returns on equities come in one of two forms. at the start of that year.

Equity 70

Equity Risk Premium Start-ups Dividends 70

Musings on Markets

DECEMBER 21, 2022

Starting in late January 2023, I will be back in the classroom, teaching valuation and corporate finance to the MBAs and valuation to the undergraduates, and these classes will continue through May 2023. The class starts with a question of what the end game should be for a business (profitability, value, social good?),

Corporate Finance 89

Corporate Finance Finance Start-ups Marketability 89

Musings on Markets

JANUARY 5, 2024

I have also developed a practice in the last decade of spending much of January exploring what the data tells us, and does not tell us, about the investing, financing and dividend choices that companies made during the most recent year. Return on Equity 1. Dividends and Potential Dividends (FCFE) 1. Beta & Risk 1.

Dividends 98

Dividends Risk Premium Equity Book Value 98

Musings on Markets

DECEMBER 15, 2021

At the start of every semester for as long as I can remember, I have invited people to sit in informally on my classes at NYU or take the shorter online versions on my website. If you have a bigger budget, I would try to emulate Professor Andrew Lo , who described his astounding set up for teaching last year.)

Corporate Finance 56

Corporate Finance Finance Start-ups Technology 56

FE International

MARCH 23, 2022

Crucially, any owner salary/dividends can be added back to the profit number, too. Investors will likely appraise the business based on this benchmark alone and apply a multiple to arrive at the final business valuation. Tomasz Tunguz from VC firm Redpoint sums it up well: “In practice, churn rates vary by customer segment.

EBITDA 105

EBITDA Start-ups Business Valuation Marketability 105