About the Department Undergrad Studies Graduate Studies Research Seminars New books Faculty & Staff News & Events Alumni & Friends Course Information Statistical Consulting Mathematics Learning Center	Research Financial Mathematics Seminar Wednesday, October 31, 2007, 4:30 - 5:30 PM University of Cincinnati, Braunstein Hall, Room 325 Srdjan Stojanovic will speak on “Equity Valuation and Market Share Dynamics” Dr. Stojanovic is Professor of Mathematics in the College of Arts and Sciences at the University of Cincinnati Abstract: In the first part of the talk we shall present briefly the recent theory of equity valuation, as introduced in S. Stojanovic, “The dividend puzzle unpuzzled” (http://ssrn.com/abstract=879514). In particular, we shall present some explicit equity valuation formulas, which, as a very special case, contain the Miller-Modigliani-like equity valuation theory (of dividend policy irrelevancy), but which also, in the natural general setting contradict their main finding (establishing quantitatively the dividend policy relevancy), which is consistent with the Black’s dividend puzzle pronouncements. In the second part of the talk we specialize to the case when the firm’s value is significantly affected by its market share dynamics – market share gain or loss. We establish an explicit formula, involving special functions, for the value of the company under such circumstances. Applications in optimal marketing and optimal retail pricing are discussed as well.

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