This is how the CFA should be taught, excellent transition from FCFE and levered betas to Modigliani-Miller, thank you so much for the series, Professor.
Hello sir, thank you. Please I have a question, for bank valuation, we use cost of equity instead of WACC, but if we want to valuate a subsidiary operating in another country we should add another layer of risk, shall we add the differential of cds or inflation ( between two countries parent and subsidiaries) to the basic cost of equity or should we use another thing . Thank you in advance
Hi, just a guess, but I think if you do the valuation in the same currency for both then inflation should not affect anything, because inflation is currency-specific:) The country risk premium should be the only punishment for operating in that country. Correct me if I'm wrong.
This is how the CFA should be taught, excellent transition from FCFE and levered betas to Modigliani-Miller, thank you so much for the series, Professor.
the justification for using a levered beta instead of a regression was mind blowing sir. thank you so much for valuable lecture
Hello sir, thank you.
Please I have a question, for bank valuation, we use cost of equity instead of WACC, but if we want to valuate a subsidiary operating in another country we should add another layer of risk, shall we add the differential of cds or inflation ( between two countries parent and subsidiaries) to the basic cost of equity or should we use another thing . Thank you in advance
Hi, just a guess, but I think if you do the valuation in the same currency for both then inflation should not affect anything, because inflation is currency-specific:) The country risk premium should be the only punishment for operating in that country. Correct me if I'm wrong.
i have a question for anyone who could help
what is the difference between the MBA valuation and undergrad valuation ??
I haven't watched the undergrad version. But Prof Damodaran mentioned once that there isn't much difference. Pick any one and stick with it.