Musings on Markets

FEBRUARY 8, 2025

In this context, the cost of capital become a measure of the cost of funding a business: In dividend decision s, i.e., the decisions of how much cash to return to owners and in what form (dividends or buybacks), the cost of capital is a divining rod.

Risk Premium 74

Risk Premium Beta Start-ups Equity 74

RNC

JULY 2, 2024

One of the key elements of these pitches is business valuation —the process of determining the financial value of a startup. But why does valuation matter, and how does it impact startups seeking investment? Conversely, a lower valuation may require founders to give up more equity. How Business Valuation is Determined?

Business Valuation 52

Business Valuation Dividends Discounted Cash Flow Price to Earnings 52

Andrew Stolz

FEBRUARY 7, 2022

Highlights: End markets mature, no opportunities to grow. Massive dividend yield secured by strong cash generation. Cash machine ensures consistent massive dividend yield. It consistently delivered strong FCFF that were more than sufficient to cover high dividends. The FCF yield shows ROEC’s dividend-paying potential.

Dividends 52

Dividends Net Debt EBIT Marketability 52

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). Of these 244 transactions, only 24 involved companies that paid dividends, or less than 10% of the transactions.

Dividends 52

Dividends Appraisal Marketability Start-ups 52

Equilest

MARCH 28, 2025

distressed firms) Companies facing bankruptcy Impact on Investors and Stakeholders Risk to shareholders Implications for lenders and creditors How Negative Equity Affects Valuation Impacts on stock price Effect on mergers and acquisitions Can a Business Recover from Negative Equity? How does negative equity affect dividends?

Equity 40

Equity Net Debt Enterprise Value Capital Structure 40

Equilest

FEBRUARY 5, 2023

In this article, we delve into the effect of voting rights on a business's value and the significance of the DLVR in business valuation. Levy believes that "understanding the DLVR and the role of voting rights in business value is essential for investors who desire control and influence in companies."

Business Valuation 40

Business Valuation Dividends Start-ups Marketability 40

Chris Mercer

APRIL 7, 2023

” The International Valuation Glossary – Business Valuation (“the Glossary”) provides definitions of liquidity and marketability and their related discounts. Liquidity — the ability to quickly or readily convert an asset, business or investment to cash at minimal cost. META Holdings, Inc.

Marketability 52

Marketability Fair Market Value Appraisal EBITDA 52