L2 Formula thread - No explanations required.

EV = Market value of Debt + Market value of common stock + preferred equity - cash and investment
 
Gordon Growth Return on Equity = Forecasted next year dividend yield + long term index growth rate - long term riskfree rate
 
nyccfa2010 Wrote:
——————————————————-
> Justified P/B: ROE-R / r-g
Dude Jusified P/B = (ROE - g)/(r-g)
 
kevincwang Wrote:
——————————————————-
> nyccfa2010 Wrote:
> ————————————————–
> —–
> > Justified P/B: ROE-R / r-g
>
>
> Dude Jusified P/B = (ROE - g)/(r-g)
both are correct. CFAI uses this one.
 
cfaboston28 Wrote:
——————————————————-
> kevincwang Wrote:
> ————————————————–
> —–
> > nyccfa2010 Wrote:
> >
> ————————————————–
>
> > —–
> > > Justified P/B: ROE-R / r-g
> >
> >
> > Dude Jusified P/B = (ROE - g)/(r-g)
>
>
> both are correct. CFAI uses this one.
What that big R stands for? now I am thinking capitalization ratio…
 
“Dude Jusified P/B = (ROE - g)/(r-g) ”
I’ve never seen this, nor does it seem to make sense conceptually.
Of course, I could just be sabotaging people in order to increase my odds, so take that into account.
 
great,
GGM and its relatives:
P=D1/(r-g)
P=FCFF1/(WACC-g)
P=FCFE1/(r-g)
P=NOI/(r-g)=NOI/cr
..
P=B0+PVGO
P=B0+PVRI=B0+(ROE-r)*B0/(r-g)
 
nyccfa2010 Wrote:
——————————————————-
> (ROE - g)/(r-g)
>
> no explantations per topic, use that for just p/b
Got where you were coming from
there is another formula:
justified P/B = 1 + (ROE-r)/(r-g)
 
skillionaire Wrote:
——————————————————-
> “Dude Jusified P/B = (ROE - g)/(r-g) ”
>
> I’ve never seen this, nor does it seem to make
> sense conceptually.
>
> Of course, I could just be sabotaging people in
> order to increase my odds, so take that into
> account.
strategy wont work well, considering I am literally going to blow this test out of the water, low 90’s is my guess. yes I am the badass of finance.
 
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