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Data Update 1 for 2024: The data speaks, but what does it say?

Musings on Markets

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.

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Data Update 1 for 2023: Setting the table!

Musings on Markets

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.