| To understand the income method, you
should have a firm grasp of the basic DCF formulas--
This is a reprise of "time value of money"
notions introduced in Chapter
1. We first review the DCF formulas and then
the inputs for the formulas -- namely, estimates
of cash flows (earnings) and estimates of the
appropriate discount rate. You should make sure
you are comfortable with these arithmetic foundations
of the DCF method before tackling more advanced
applications later on. |
Case Study
Wilson v. Great American Industries,
Inc., 746 F. Supp. 251 (N.D.N.Y. 1990)
(measure of damages in a case of proxy fraud)
|
5.2.1 Income Method