The heated debate over the sustainability of Australia’s high current account deficit that raged over most of the fixed and floating exchange period was due to the failure of policymakers to shift from the Keynesian Mundell Fleming (KMF) paradigm which has been rendered obsolete by the...

We investigate a disaggregated version of the abnormal earnings growth (AEG) model of Ohlson and Juettner-Nauroth (2005). The value of the firm then becomes discounted free cash flows minus initial debt. Discounted free cash flows are equal to capitalized operating earnings from the initial...

The Swedish wealth tax on individuals imposes an interesting, and unusual, asymmetry on listed stocks. Stocks on the A list of the Stockholm Stock Exchange are subject to the wealth tax, whereas stocks on the O list are not (with some exceptions). This paper attempts to discern the valuation...

All steps of the discounted cash flow model are outlined. Essential steps are: calculation of free cash flow, forecasting of future accounting data (income statements and balance sheets), and discounting of free cash flow. There is particular emphasis on forecasting those balance sheet items...