Recent years have seen a dramatic decline in the creditworthiness of firms and increasing concern regarding the reliability of credit estimates provided by rating agencies. In this paper, I find evidence that a particular account, the valuation allowance for deferred tax assets, helps predict the future creditworthiness of a firm. Under the provisions of SFAS No. 109, a firm records a deferred ...

This paper develops a simple model of pricing and choice of capacity in a market where riskaverse customers are ex-anfeuncertain about their valuation for use of the capacity. As unused capacity has no salvage value, the seller maximizes profit by economizing on capacity through over-booking. Thus each customer faces both uncertainty in his own valuation as well as uncertainty about availabilit...

This paper describes an approach to the valuation of draft positions for the annual NFL and NHL entry drafts. We then use this valuation to evaluate and construct exchanges of draft positions.

The traditional current account can be an inaccurate measure of the change in the net foreign asset (NFA) position. Using gross asset and liability positions at the country level, a number of 'valuation effects' have been identified which contribute to changes in NFA but do not enter the reported current account. This paper uses new developments in the analysis of portfolio allocation in genera...

Background: Health state valuation exercises can be conducted online, but the quality of data generated is unclear. Objective: To investigate whether responses to binary choice health state valuation questions differ by administration mode: online versus face to face. Methods: Identical surveys including demographic, self-reported health status, and seven types of binary choice valuation questi...

We thank the editor and an anonymous referee. Any errors are our own. Abstract Using the WACC to Value Real Options We present a real option valuation using the weighted average cost of capital (WACC). This is an alternative to risk-neutral real option valuation. Using the WACC involves a marginal increase in mathematical complexity, but it is easy to implement in a spreadsheet, and it is easy ...

We provide new insights into the determinants of acquirer announcement returns with a unique sample of targets that are acquired within three years of their IPOs. Existing studies of acquisitions of private and established public targets find positive relations between acquirer announcement returns and prior target valuation changes. In our sample of recently listed targets, we measure the prio...

The aim of this paper is to present a framework to bank valuation based on two generally acceptable valuation models that are not specific to banks: the model of discounted Equity Cash Flow to Equity (ECF) and the model of discounted Residual Income (RI). As emphasized by Koller, Goedhart and Wessels (pp. 663, 2005) [1] in a bestselling book on the valuation of firms, the valuation process of a...

It is shown that each almost maximal valuation ring R, such that every indecomposable injective R-module is countably generated, satisfies the following condition (C): each fp-injective R-module is locally injective. The converse holds if R is a domain. Moreover, it is proved that a valuation ring R that satisfies this condition (C) is almost maximal. The converse holds if Spec(R) is countable....