Some issues related to the assessment of future cash flows. A simple model is presented, which shows the effect on the change in assumptions about the appropriate discount rate, the level of profitability, sales growth, the intensity ratio of assets and debt. Helps students to solve some of the following questions: 1) What is the definition of cash flow? 2) What is the effect of changes in interest rates have been on the assessment? 3) How sensitive is the significance of changes in the assumptions about the basic characteristics of the stream of cash flows? 4) How does the increase in the cost? 5) How does the use of borrowed funds affects the price? 6) What are the prices to income? and 7) What factors influence the price-to-income ratio? "Hide
by William A. Sahlman 44 pages. Publication Date: 08 Oct 1987. Prod. #: 288023-PDF-ENG
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