The premium is then scaled by the market value of equity
of the target 50 days prior to the announcement day (Moeller et al.
This risk measurement model focuses on the balance sheet and provides an approximation of the exposure of the market value of equity
(equity value) against movements in the discount rate (WACC).
In this enhanced Z-score model, they dropped Sales/Total Asset ratio and used book value of equity in place of market value of equity
to make it suitable for private firms whose securities were not quoted in stock exchange.
Funded status is measured as pension assets minus pension liabilities at the plan level, then aggregated from plan to firm level and divided by the market value of equity
at the beginning of the year.
Results presented in Table 1 show that univariately the issuance firms and matching non-issuance firms are not statistically different in size, market-to-book, market value of equity
, credit ratings, ROA, capital expenditure, acquisition expenditure, and dividend payout ratio.
The pro-forma market value of equity
of the transaction is valued at approximately USD 2.4bn, based on the current shares outstanding and the closing stock price on 27 April 2016 for both companies.
Thinking about Tobin's Q as a measure of charter value, the data show that markets assess the impact of information on changing credit conditions and bank responses to them on the value of the real options embedded in the market value of equity
. We find evidence of a feedback loop between bank risk and charter value where expectation of asset quality deterioration negatively impacts charter values, through increased costs of financial distress and regulatory interference.
Market value of assets has been computed by sum of market value of equity
and book value of assets minus sum of book value of equity and balance sheet deferred taxes.
Another line of research seeks to estimate the ex ante or implied cost of equity, mainly based on the relation between a company's market value of equity
and its expected future cash flow, which is measured according to earnings and/or dividends estimates.
Under the proposed rule, any proxy or content solicitation material for an annual meeting is required to disclose whether any employee or member of the board of directors, or any designee of such employee or director, is permitted to purchase financial instruments that are designed to hedge or offset any decrease in the market value of equity
For a firm-year observation to be included in the primary sample, data must be available on the market value of equity
, total assets, long-term debt, executive compensation, institutional ownership, and the number of business segments.
My co-authors and I evaluate the empirical power of the WACC equation using factor regressions, a standard technique in empirical finance that relates the return on a security to the contemporaneous returns on a number of "factors." In one of the most widely cited applications of such factor models, Eugene Fama and Kenneth French specify three factors: the excess return on the overall stock market (the market factor), the return spread between small and large stocks, and the return spread (the value factor, denoted HML) between value stocks (with high book value of equity relative to the market value of equity
) and growth stocks (with low book value of equity relative to the market value of equity