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Part 2 of 3 Stock Value, Valuing Stocks, Common Finance Stock Valuation

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Uploaded by on May 1, 2010

Clicked here http://www.MBAbullshit.com/ and OMG wow! I'm SHOCKED how easy.. No wonder others goin crazy sharing this??? Share it with your other friends too!

Fun MBAbullshit.com is filled with easy quick video tutorial reviews on topics for MBA, BBA, and business college students on lots of topics from Finance or Financial Management, Quantitative Analysis, Managerial Economics, Strategic Management, Accounting, and many others. Cut through the bullshit to understand MBA!(Coming soon!)

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  • Instructor, can you tell me....why does the Required Return have to be larger than the growth rate???

  • @RoseBing Hello Rose! In the real world, it's always possible to have a growth rate bigger than required return or larger than a bank rate or discount rate. However, "this formula" only works if the growth rate is smaller than the required return. If your growth rate is bigger than required return, it becomes a lot more complicated, and so this formula won't work. You can check out my other video on "Business Valuation" for slight more complex problems. Cheers!

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  • @RoseBing

    If the Required return is less than growth rate, then the denominator will become a negative number.

    A stock value shouldnt really have a negative value.

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