标题: A few brief definitions from Equity section [打印本页] 作者: svgleeson 时间: 2011-7-11 19:25 标题: A few brief definitions from Equity section
Please confirm if you agree with the below:
"Expected ROE" = expected return = required return on equity
Shareholders* = equity holders + debt holders
Stakeholders = equity holders + debt holders
Stockholders = equity holders
* The reason I think shareholders include both is because on Schweser page 275 Book 3, in the definition of EVA, it says "measures the value added for shareholders." Well EVA is value added to the whole firm (EVA = NOPAT - $WACC) so I deduced that "shareholders" are both debt and equity holders.作者: FinancialAnaly 时间: 2011-7-11 19:25
shareholders won't include debtholders
part of the $wacc effectively pays off debt, once debt is paid the remaining cash is left for equityholders only
i hope so anyway作者: zhaoyp 时间: 2011-7-11 19:25
Yes I think of shareholders as equity holders only.
