Technical Note on Expectations Case Solution

Reviews the math of expectations embedded in a company’scurrent stock price and the associated (whole) enterprise value. By demonstrating how the present stock price can be compounded forth to arrive at an anticipation one or more years later on starts.

Describes the log normal distribution of the present stock price, the consistent updating of expectations, and the resolution of uncertainty through time.

This is just an excerpt. This case is about FINANCE & ACCOUNTING

PUBLICATION DATE: August 17, 2001 PRODUCT #: 902055-HCB-ENG