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I am in need of help, I got a valuation to be done and My brother said to calculate him the yield. And take the bank statement for it.
But I was wondering should i use the Dividend Yield or the Earning yield.
Explain? Also Let me know How to do it.
He is having a valuation from the resort.
Hi,
Is this a P2 question? Valuations are in both F9 and P4.
From my limited knowledge I’d be curious to know how you’d get a dividend yield or earnings yield from a bank statement. You’d need the financial statements and market data I’d have thought.
Furthermore when looking at a discount rate to use for valuations you need to look at the free cash flows that you are discounting to see if you need to use a weighted average cost of capital or a cost of equity. To calculate these you would need to use the dividend valuation model or CAPM.
Hope this helps.
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