Valuation methods and German merger practice

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract. The most relevant practical impediment to an application of the Markowitz portfolio selection approach is the problem of estimating return moments, in particular return expectations. We analyze the consequences of using return estimates implied by analysts' dividend forecasts under the explicit notion of taxes and non-flat term structures of interest rates and achieve quite good performance results. As a by-product, these results cast some doubt upon the adequacy of estimating market risk premia with implied returns, because estimation techniques with good performance results are hardly suited to describe market expectations. Terms of use: Documents in EconStor may

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Valuation methods and German merger practice

Cited by 3 publications

References 10 publications

Financial Instruments with Sports Betting Components: Marketing Gimmick or a Domain for Behavioral Finance?

Financial Instruments with Sports Betting Components: Marketing Gimmick or a Domain for Behavioral Finance?

Estimating Cost of Capital in Firm Valuations with Arithmetic or Geometric Mean - Or Better Use the Cooper Estimator?

Analysts' Dividend Forecasts, Portfolio Selection, and Market Risk Premia

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