Classic TA Workplace Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Classic TA Workplace

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Perspective who wrote (66326)	2/13/2003 11:34:36 AM
From: reaper	Read Replies (1) of 209892

<<Why the hell are they adding dividend yield to earnings yield? Last time I checked, the divvies had to be paid out of earnings. >> dood, you obviously do not understand the "new math". have you ever read "Dow 36k"? funniest thing in the world. Hassett was an actual professor at Columbia (though he did not get tenured and apparantly couldn't get a job at another U as he ended up in a think tank). they based their 'perfectly reasonable price' analysis on a dividend discount model. so they paid out a growing stream of dividends, and discounted them back. what the farking morons forgot, however, is that for the dividends to GROW some (actually, a lot) of the earnings have to be re-invested in the business and thus cannot be paid out as dividends. duh!!!! there was an hilarious online exchange between these morons and the editor of The Economist over this issue as well as their discount rate assumption (put simply -- equity cash flows are a junior claim to debt cash flows. so how the F*CK can you discount them back to the present at a LOWER discount rate; e.g. the treasury rate) it amazes me that for all of the 'advances' in finance since Graham & Dodd these farking morons still don't know anything. Cheers

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next