WFU Law School
Law & Valuation
5.2.1 Income Method

5.2.2 Basic DCF Formulas

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

©2003 Professor Alan R. Palmiter

This page was last updated on: April 5, 2004