Musings on Markets

JANUARY 10, 2025

In corporate finance and investing, which are areas that I work in, I find myself doing double takes as I listen to politicians, market experts and economists making statements about company and market behavior that are fairy tales, and data is often my weapon for discerning the truth. Beta & Risk 1. Equity Risk Premiums 2.

Risk Premium 120

Risk Premium Dividends Start-ups Corporate Finance 120

Musings on Markets

JANUARY 5, 2024

In my corporate finance class, I describe all decisions that companies make as falling into one of three buckets – investing decisions, financing decision and dividend decisions. Equity Risk Premiums 2. Financing Flows 5. Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3.

Dividends 107

Dividends Risk Premium Equity Book Value 107

Musings on Markets

JANUARY 6, 2023

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. For example, I have seen it asserted that a stock that trades at less than book value is cheap or that a stock that trades at more than twenty times EBITDA is expensive. High-Low Price Risk Measure 5. Cost of Debt 2.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52