explain how an organization might apply each model to optimize capital structure or make a capital investment decision.
Part 1. Discuss:
Valuation models are an integral part of financial decision-making and are used to make decisions about capital investment, capital structure, and mergers and acquisitions. They are also used to value financial securities, including stocks and bonds.
Conduct your own research, and identify 2–3 scholarly sources that describe corporate valuation models.
From your research select two valuation models and explain how an organization might apply each model to optimize capital structure or make a capital investment decision.
Critique the strengths and weaknesses of each model.
Discussion Requirements: 300 minimum words
Citation Requirement: Minimum of 1 – 2 scholarly, peer-reviewed source properly cited and referenced
Part 2. Discuss:
Write two substantive responses to your colleagues. Responses could include suggestions for further resources, questions of clarification, or providing context and insight. Avoid simple posts of agreement; if you agree, explain why, and then thoughtfully further the conversation.
It is important to include at least one industry authoritative or scholarly source per response. Textbooks and online resources (e.g., wikipedia, investopedia, blogs, smallbuschron, online magazines are not scholarly resources) are not considered scholarly sources. Scholarly articles are peer-reviewed.
Response to Peers: 150 minimum words