scholarly journals An Internally Consistent Approach To Common Stock Valuation

2011 ◽  
Vol 1 (3) ◽  
Author(s):  
Larry Gorman
Keyword(s):  
Growth Rate ◽  
Traditional Approach ◽  
Stock Valuation ◽  
Second Stage ◽  
Pricing Errors ◽  
Multi Stage ◽  
Fundamental Understanding ◽  
Distinct Stage ◽  
The One ◽  
Dividend Growth

A modern corporate finance curriculum typically extends the one-stage Gordon (1962) dividend discount model into a multi-stage environment. In such instances, each regime of constant dividend growth defines a distinct stage. The rate of sustainable dividend growth in each stage is typically determined by specifying the firms return on asset (ROA) and plowback (PB) ratios in each stage, and then computing the implied dividend growth rate as g = ROAPB.In a two-stage problem, current convention typically advocates that the first dividend in the second stage should equal the last dividend in the first stage, multiplied by 1 + g2, where g2 is the growth rate of dividends in the second stage. We show that the dividend stream generated with this methodology is inconsistent with the ROA and plowback assumptions used previously to compute g2. The implication is that the conventional pricing methodology results in stock valuations that are inconsistent with ROA and PB assumptions. For a common textbook problem, we demonstrate pricing errors on the order of 30%. In order to address the issue, we provide an alternative pricing methodology that results in valuations that are consistent with underlying assumptions.Pedagogically, when the proposed approach is contrasted with the traditional approach, the student is forced to develop a deeper fundamental understanding of how stock valuation relates to (i) operational efficiency, (ii) dividend policy, and (iii) the economic environment in which the firm competes.

scholarly journals Multi-Stage Cold Forging Process for Manufacturing a High-Strength One-Body Input Shaft

Materials ◽  
2021 ◽  
Vol 14 (3) ◽  
pp. 532
Author(s):  
A Jo ◽  
Myeong Jeong ◽  
Sang Lee ◽  
Young Moon ◽  
Sun Hwang
Keyword(s):  
High Strength ◽  
Microstructural Characterization ◽  
Fatigue Tests ◽  
Machining Process ◽  
Cold Forging ◽  
Element Analysis ◽  
Forging Process ◽  
Input Shaft ◽  
Multi Stage ◽  
The One

A multi-stage cold forging process was developed and complemented with finite element analysis (FEA) to manufacture a high-strength one-body input shaft with a long length body and no separate parts. FEA showed that the one-body input shaft was manufactured without any defects or fractures. Experiments, such as tensile, hardness, torsion, and fatigue tests, and microstructural characterization, were performed to compare the properties of the input shaft produced by the proposed method with those produced using the machining process. The ultimate tensile strength showed a 50% increase and the torque showed a 100 Nm increase, confirming that the input shaft manufactured using the proposed process is superior to that processed using the machining process. Thus, this study provides a proof-of-concept for the design and development of a multi-stage cold forging process to manufacture a one-body input shaft with improved mechanical properties and material recovery rate.

Relative consumption, relative wealth, and long-run growth: when and why is the standard analysis prone to incorrect conclusions?

2021 ◽  
pp. 1-25
Author(s):  
Franz X. Hof ◽  
Klaus Prettner
Keyword(s):  
Growth Rate ◽  
Traditional Approach ◽  
Total Change ◽  
Relative Consumption ◽  
Fundamental Factor ◽  
Elasticity Of Intertemporal Substitution ◽  
Relative Wealth ◽  
Novel Approach ◽  
Long Run ◽  
Two Parameters

Abstract We employ a novel approach for analyzing the effects of relative consumption and relative wealth preferences on economic growth. In the pertinent literature, these effects are usually assessed by examining the dependence of the growth rate on the two parameters of the utility function that seem to measure the strength of the relative consumption and the relative wealth motives. Applying our fundamental factor approach, we identify specifications in which the traditional approach yields incorrect qualitative conclusions. The problematic specifications have the common unpleasant property that the parameter that seems to determine the strength of the relative consumption motive actually also affects the elasticity of intertemporal substitution of absolute consumption (and the strength of the relative wealth motive). Since the standard approach is unaware of the additional effect(s), it attributes the total change in the growth rate incorrectly to the change in the strength of the relative consumption motive.

scholarly journals Applied Research on Strategic Management of SMEs in Romania in the Digital Age

2017 ◽  
Vol 23 (1) ◽  
pp. 423-429
Author(s):  
Dan Popescu ◽  
Cristina State ◽  
Livia Toanca ◽  
Ioana Pavel
Keyword(s):  
Strategic Management ◽  
Digital Age ◽  
Cultural Changes ◽  
Homogeneous Groups ◽  
Second Stage ◽  
Econometric Methods ◽  
Scientific Approach ◽  
Spss Software ◽  
The One ◽  
Proportional Distribution

Abstract Technological social and cultural changes generated by the digital age have a significant impact on both individual and society as a whole [1]. Is the context in which our research aimed at revealing the extent to which SMEs in our country are prepared to cope with these changes and can adapt to an environment increasingly turbulent and unpredictable [2]. Based on the three hypotheses of our scientific approach, the method used was the quota for proportional distribution by counties, respectively the optimal-layered model for the distribution by fields of activity. As a means of investigation we used a questionnaire with 26 questions answered by 598 SMEs, the purpose being represented by identifying, on the one hand, the used methods of strategic management and, on the other hand, the uptake of digital means by them. The responses from the distribution of the questionnaire were analyzed by various statistical and econometric methods. In a first stage we used descriptive statistics to identify peculiarities of respondents to compare different homogeneous groups. In the second stage of analysis to determine statistical deductive conclusions, we used the analysis of variance, correlation and linear regression and ANOVA using SPSS software for Windows 16.0. Following validation of the research hypotheses, in the end of the work we formulated a series of proposals to improve the strategic management of SMEs in Romania in the digital age.

Agent-based economic models and econometrics

2012 ◽  
Vol 27 (2) ◽  
pp. 187-219 ◽  
Author(s):  
Shu-Heng Chen ◽  
Chia-Ling Chang ◽  
Ye-Rong Du
Keyword(s):  
Financial Markets ◽  
Agent Based Modeling ◽  
Computational Finance ◽  
Agent Based ◽  
Second Stage ◽  
The Past ◽  
Stage Development ◽  
Three Stages ◽  
The One ◽  
Two Stages

AbstractThis paper reviews the development of agent-based (computational) economics (ACE) from an econometrics viewpoint. The review comprises three stages, characterizing the past, the present, and the future of this development. The first two stages can be interpreted as an attempt to build the econometric foundation of ACE, and, through that, enrich its empirical content. The second stage may then invoke a reverse reflection on the possible agent-based foundation of econometrics. While ACE modeling has been applied to different branches of economics, the one, and probably the only one, which is able to provide evidence of this three-stage development is finance or financial economics. We will, therefore, focus our review only on the literature of agent-based computational finance, or, more specifically, the agent-based modeling of financial markets.

scholarly journals ECOLOGICAL STUDIES ON NEPENTHES AT BARITO ULU, CENTRAL KALIMANTAN, INDONESIA

2011 ◽  
Vol 9 (3) ◽  
Author(s):  
Muhammad Mansur
Keyword(s):  
Growth Rate ◽  
Growth Rates ◽  
Stem Length ◽  
Ecological Studies ◽  
Central Kalimantan ◽  
Length Growth ◽  
Small Plot ◽  
Heath Forest ◽  
One Year ◽  
The One

Ecological studies on the Nepenthes species at Barito Ulu, Central Kalimantan, Indonesia were conducted between August 2005 and September 2006. Surveys and two small plot inventories were used to determine the diversity and population of Nepenthes at the study site. We found eight Nepenthes species around the BaritoUlu study area: N. albomarginata, N. ampullaria, N. gracilis, N. hirsuta, N. rafflesiana, N. reinwardtiana, N. stenophylla, and N. hispida. Plot A was dominated by N. rafflesiana with one other species found; whilst in plot B we found five species but it was also dominated by N. rafflesiana. In plot A, the one year stem length growth rate of N. albomarginata was faster than N. rafflesiana (5.0 and 3.5 cm respectively). While in plot B, N. gracilis (21.7 cm) and N. reinwardtiana (13.1 cm) showed faster growth rates than N. albomarginata (5.2 cm), N. rafflesiana (7.0 cm) and N. stenophylla (8.5 cm). Generally, the habitat of Nepenthes in the study site is heath forest.

scholarly journals Structural changes and economic growth in the world economy and Russia

2019 ◽  
Vol 5 (1) ◽  
pp. 1-26 ◽  
Author(s):  
Valeriy V. Mironov ◽  
Liudmila D. Konovalova
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Global Economy ◽  
World Economy ◽  
Structural Changes ◽  
Russian Economy ◽  
The World ◽  
Preliminary Version ◽  
The One ◽  
Relationship Of

The article considers the problem of the relationship of structural changes and economic growth in the global economy and Russia in the framework of different methodological approaches. At the same time, the paper provides the analysis of complementarity of economic policy types, which, on the one hand, are aimed at developing the fundamentals of GDP growth (institutions, human capital and macroeconomic stabilization), and on the other hand, at initiating growth (with stable fundamentals) with the help of structural policy measures. In the study of structural changes in the global economy, new forms of policies of this kind have been revealed, in particular aimed at identifying sectors — drivers of economic growth based on a portfolio approach. In a given paper a preliminary version of the model of the Russian economy is provided, using a multisector version of the Thirlwall’s Law. Besides, the authors highlight a number of target parameters of indicators of competitiveness of the sectors of the Russian economy that allow us to expect its growth rate to accelerate above the exogenously given growth rate of the world economy.

scholarly journals The workers of the Donbas coal mines in the post reform period

2019 ◽  
pp. 15-20
Author(s):  
І.В. Довжук
Keyword(s):  
Growth Rate ◽  
Child Labor ◽  
High Growth ◽  
High Growth Rate ◽  
Coal Industry ◽  
The Other ◽  
Donets Basin ◽  
Reform Period ◽  
The One ◽  
Intensive Development

The article deals with the problems of providing labor in the coalmines of the Donets Basin in the post reform period. Attention is drawn to the use of female and child labor in the production process, and the conditions under which this happened are being ascertained. It is noted that the intensive development of the coal industry in the 1880-1890s led, on the one hand, to a high growth rate in the number of workers employed in coal mining, and on the other, it exacerbated the deficit of this category of workers. Gradually, with the development of industry in the region, a constant contingent of miners took shape.  As a result, the so-called mining families began to form in the coal industry of Donbass, which later became a tangible source of replenishing the ranks of workers.

scholarly journals Three ways to develop clinical guidelines. ADAPTE and AGREE GRS procedures

2019 ◽  
Vol 65 (3) ◽  
pp. 197-203
Author(s):  
Olga Yu. Rebrova
Keyword(s):  
Clinical Guidelines ◽  
De Novo ◽  
Professional Association ◽  
Professional Organization ◽  
Medical Community ◽  
Highly Qualified ◽  
National Medical ◽  
Multi Stage ◽  
Adaptation Procedure ◽  
The One

Development of de novo clinical guidelines (CG) is a complex process that requires highly qualified personnel, an extended amount of time (from 1 to 3 years), and, consequently, substantial funding. In many countries there are limits to these resources, and so, as an alternative to the development of actual de novo CG, the expert community has developed simplified ways of preparing CG: adoption and adaptation. Adoption is the easiest option – it is simply translation of clinical guidelines developed by a credible foreign professional association into the native language. In this case, of course, translated guidelines should be attributed accurately as a translation, without claiming additional authorship by a local professional association. It may be stated that the local professional organization has discussed and approved the translated document. It is also possible to post comments. Another way – adaptation – is to adjust the CG, developed in one country, to the conditions and features of the healthcare system in another country. Adaptation is fundamentally more difficult than adoption. An adaptation procedure has been developed by ADAPTE, an international group of experts. Their detailed procedure, complete with commentaries, is freely available. The key stage of the multi-stage adaptation procedure is the assessment of the methodological quality of the adapted CG using the AGREE II questionnaire or its simplified version, AGREE GRS. An assessment of the relevance, consistency, acceptability and applicability of the CG is also performed. In situations of a pronounced shortage of resources, adoption of the CG is preferable, while under less constrained conditions – adaptation of the CG. Development of de novo CG in the context of an unlimited exchange of information seems inappropriate and unnecessarily costly. The compromise is an adaptation that serves, on the one hand, to significantly save various types of resources, and, on the other, to promote the methodology of evidence-based medicine in the national medical community.

scholarly journals Wstrząsająca treść jako manipulacyjny element dyskursu konfliktu

2018 ◽  
Vol 9 ◽  
pp. 135-143
Author(s):  
Anna Hłuszko
Keyword(s):  
Hate Speech ◽  
Traditional Approach ◽  
Point Of View ◽  
Media Discourse ◽  
Visual Content ◽  
Political Situation ◽  
The Media ◽  
The Common ◽  
The One ◽  
Web News

Shock content as a manipulative component of conflict discourseDifficult socio-political situation in Ukraine creates specific media discourse, which in turn gives rise to a number of phenomena, connected to information war categories, war of meanings, hate speech etc. Active entry of military issues into web news content affects traditional approach to the media-text drafting. The report examines the trends of shock visual content and its announcement in the web headlines. The influence of the content emotionalization, which is one of the common features for conflict discourse, not only on text style, but also on features of page making, selection and use of photo illustrations, headline creation, is studied. The material covering military developments usually involve deaths, injuries, loss, destruction of settlements as a result of hostilities, that is, they focus on information on suffering of both military and civilians. This results in stronger integration of shock visual content into the news, which in turn may be used as manipulation and propaganda tool. On the one hand it is used to demonstrate crimes of the enemy, on the other — as an evidence of Ukrainian military success. From the point of view of ethic and humanism the justification of such tactic is doubtful in both cases. However, the study shows that open image of death, blood, injuries in the materials and the announcement of such content in headlines are the cause of high popularity of such publications, and this mainstreams the problem of dehumanizing impact both on material’s subjects and on media audience.

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