Subsidiary company and associate company levels

Non-constant Growth: What if g = 0% for 3 years before long-run growth of 6%?

D0 = $2.00.

0	rs = 13%	1	g = 0%		3	g = 6%
			g = 0%	g = 0%		g = 6%
			2.00			2.00	2.12

Find Expected Dividend and Capital Gains Yields During the First and Fourth Years • After t = 3, the stock has constant growth and dividend yield = 7%, while capital gains

Issues Regarding the Corporate Valuation Model • Often preferred to the discounted dividend model, especially when considering number of firms that don’t pay dividends or when dividends are hard to forecast.

Given: Long-Run gFCF = 6% and WACC = 10%

r = 10%

4

398.197

Shariah Screening on Stock Portfolios

TYPE OF CONTRACT/

Types of Financial Instruments: Investment Stocks, Bonds Unit trusts, money Shariah Markets, FD Screening Qualitative Screening: On Core Business: No riba, “No profit without risk”gambling, pork, liquor, gharar “Al-ghorm bil ghonm”

CORE

HALAL

Shariah Index

Shariah Stock Screening

• Next, a set of measures called financial filters is also used to refine

• The data for ratios are taken from Balance Sheet and Income

Statement. In the case of Dow Jones Indexes they use stock market

– Liquid asset: 17% to 49%

– Interest income: 5% to 15%