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Wednesday, August 6, 2008


Came to lecture late because the bus was very late. Lecture seems to be on growth decomposition. Something to do with companies reinvesting profit (plowback) into new projects with a certain level of Return on Equity or giving the profit back to investors (payback). Present Value of Growth Opportunities. It's better to allow the company to reinvest some of it's profits into projects that derive higher return on equity than the required rate of return demanded by

Lecturer using the Gordon ratio to explain the 25% market downturn. Dividends are going down because profits are getting tighter. Investors are looking for higher returns because investors are more risk-adverse.

Starting on a new module concerned with investment appraisal techniques. Using NPV to determine of the project is worth while.

Composed and transmitted from my iPod Touch