Session 24 (MBA): Dividend Analysis and First Steps on Valuation
from Aswath Damodaran Hosted by Aswath Damodaran
In this class, we put the closing touched on dividend policy analysis by going through the possess of estimating FCFE, the cash flow left over after capital expenditures, working capital needs and debt payments. My suggestion is that you estimate the aggregate FCFE over 5 years (or as many years as you have data) and compare it to the cash returned. We ended the class by talking about the distinction between valuing equity and valuing an entire business.Slides: http://www.stern.nyu.edu/~adamodar/podcasts/cfspr16/Session24.pdfPost class test: http://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session24test.pdfPost class test solution: http://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session24soln.pdf
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