chapter 15

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February 27, 2022 at 6:57 am #649415
johnbriane
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Sir in the chapter 15 of the free lecture notes
In example 7 of omega co

After we calculate the market value per share which is 189 cents

We also calculate the overall market value
And in doing so
Why do we really have to add
189 cents with 20 cents and multiply with the year 2’s discount factor

I thought we need to multiply
189 cents with year 3’s discount factor

Thank you
February 27, 2022 at 10:24 am #649433
John Moffat
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189 is the market value in 2 years time and therefore needs discounting for 2 years to get the MV now.

Have you watched the free lecture working through this example?
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