The valuation of proprietary technology
Article Abstract:
There are three possible approaches in valuating proprietary technology. They are the market approach methods, the cost approach methods and the income approach methods. The market approach involves studying the right exchange market, confirming the veracity of data gathered, choosing the pertinent parameters for comparison, comparing the transactions with the technology being valued, and reconciling the differences in value. On the other hand, the cost approach is concerned about the three economic principles of substitution, supply and demand, and externalities. Finally, the income approach looks at such factors as the gross or net revenues, gross income or profit, net operating income, net income before and after tax, operating cash flow and net cash flow. The final value may be one of the estimates of the three valuation approaches or another number within the computed range of values.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1998
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Prepayment, default, and the valuation of mortgage pass-through securities
Article Abstract:
Mortgage pass-through securities are default-free securities that are backed by a pool of underlying mortgages. Although investors holding these securities are protected by guarantees made by financial intermediaries, the values of these pass-through securities can be influenced by prepayment and default decisions made by mortgagors. Such prepayment and default decisions affect the cash flows of pass-through securities, thereby influencing the valuation of these mortgage-backed securities.
Publication Name: The Journal of Business
Subject: Business, general
ISSN: 0021-9398
Year: 1992
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Equilibrium valuation of natural resources
Article Abstract:
Using two different natural resources market structures (pure competition and pure monopoly), an equilibrium valuation model is presented. It is demonstrated that market structure is pivotal in calculating whether or not the rate of increase in spot price from one discovery to the next is above or below the risk-free return. When there are no discoveries, equilibrium spot prices and optimal depletion policies are the same in both markets.
Publication Name: The Journal of Business
Subject: Business, general
ISSN: 0021-9398
Year: 1984
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