5. Valuation Flashcards
0
Q
What is the NAV (Net Asset Value) useful for assessing?
A
The Minimum price at which a company’s shares should theoretically trade;
The underlying value of a property company;
The underlying value of an investment trust (a company that invests in other company and government securities)
1
Q
What does Gordon’s Growth Model assume?
A
It assumes that future dividends will grow at a constant rate.
2
Q
What is the most popular shareholder value model?
A
The economic value added (EVA)
