Dividend Valuation Model Essay Example | Topics and Well Written Essays - 2000 words

Dividend Valuation Model - Essay Example Brown & Medoff, (1988), stated that the dividends that have not become ex dividends are not required for forecasting because they have just been announced. The forecast are also based on the detailed financial models running over 2 to 5 year. This model also assumes the constant growth rate. The method is useful when evaluating then value of a company in the short and medium term, however, in long term valuation, it may not be suitable but the management can only use this model if the shareholder agree to accept the assumptions that the dividend payout policies will be maintained for future calculations ( Jensen, &, Ruback, 1983, pp5–50).. The model has limitation that makes it less appropriate. For example, the model has imitations making it difficult to use for short term forecasting as opposed to the long run because the system dividends on the ability to while the order details of host companies have an attitude while most companies use the links because it is not subscribed. Most companies also understand that the models Is dependent on the input data. Finally, the divided discount model is also not preferred by other companies because the model omits cash flows (PWC, 2007, 1-50).

Globalisation Coursework Example | Topics and Well Written Essays - 3000 words

Globalisation - Coursework Example Globalisation ushered the unavoidable priority to comply with market forces, when compared with complying with the local government’s economic prerogatives (Barrera, 2008). The ethics of the global economy forces local governments to bend to the strong pressures of the global environment to come to terms with the global marketplace economic agreements (Ervin, 2008). Likewise, a company that is located in the United States can sell similar products to current and future customers located in Japan, Korea, or Singapore, without fearing globalisation’s business climate change (Greenwald, 2008). In addition, a company that is located in Argentina can send its products to current and future clients located in the United Kingdom (Homann, 2007). The above discussion clearly shows that the risk of not finding current and future customers for the company’s products is reduced. The opening up of the global marketplace to a company located in any part of the world reduces th e risk of not generating the company’s required revenues. Globalisation reduces Expense Risks Globalisation has leveled the playing field, in terms of generating expenses. ... In addition, the hammer manufacturing company located in Poland can purchase its quality manufacturing raw materials from a supplier located in Sweden (Bella, 2009). An apparel making company that is set up in Peru can buy its clothing raw materials from preferred current and future suppliers located in Dubai (Marmolejo, 2012).The above discussion offers convincing proof that globalisation drops the related risks of not finding current and future suppliers for the company’s raw materials. Changing from dealing with only the local community’s current and future suppliers to the bigger global list of current and future suppliers decreases the company’s risk of not finding available raw materials. Globalisation reduces Profit Risks Globalisation has leveled the playing field, in terms of generating profits. A research shows that many countries have benefitted from their embracing the global business environment. Some of the countries that benefitted from globalisati on include East Asian nations, India, and China. Later, some African countries joined the globalisation bandwagon. The global business market segment triggers corresponding both positive and negative effects on the nations’ local industries (Das, Another Perspective on Globalisation, 2010). A book publishing company that is set up in Russia can profit from selling its books in Vietnam’s bookstores, in compliance with the states’ liberal minded political leaders’ penchant to enter the global business stage (Blum, 2008). A food company that is located in New Zealand can dependently profit from exporting its products to Australia (Lane, 2008). A car manufacturing company can profit