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    Cover
    Contents
    Title
    Copyright
    Dedication
    Foreword
    Preface
    About the Author
    Chapter 1: Introduction
    Chapter 2: Inflation-Protected Bonds as a Valuation Template
    Chapter 3: Valuing Uncertain, Perpetual Income Streams
    Chapter 4: Valuing a Leveraged Equity Security
    Chapter 5: Case Studies in Valuation During the Recent Decade
    Chapter 6: Treatment of Mergers and Acquisitions
    Chapter 7: A Fair Representation? Broad Sample Testing over a 10-Year Market Cycle
    Chapter 8: Price Volatility and Underlying Causes
    Chapter 9: Constructing Efficient Portfolios
    Chapter 10: Selecting among Efficient Portfolios and Making Dynamic Rebalancing Adjustments
    Chapter 11: How Did We Arrive Here Historically? Where Might We Go Prospectively?
    Appendix A: Mathematical Review of Growth Rates for Earnings, Dividends, and Book Value per Share
    Appendix B: Sustainable and Nonsustainable Inflation Rates
    Appendix C: Deriving the “Equity Duration” Formula
    Appendix D: Traditional Growth/Equity Valuation Formula
    Appendix E: Adjustments Required to the Traditional Growth/Equity Valuation Formula to Preserve Inflation Neutrality
    Appendix F: Brief Recapitulation of the Miller 1977 Capital Structure Irrelevance Theorem
    Appendix G: Time Series Charts of Unleveraged, Inflation-Adjusted Discount Rate Estimates
    Appendix H: Comparison of Volatility of Pretax and After-Tax Income
    Appendix I: Relationship between Observed Price-to-Earnings (“P/E”) Ratios and Nominal Interest Rates
    Appendix J: Additional Background on Mathematical Optimization Subject to Constraint Conditions
    Appendix K: Derivation of Asset Class Covariances
    Appendix L: Expected Return and Variance/Covariance Inputs Underlying Portfolio Examples
    Bibliography
    Index
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    Appendix G: Time Series Charts of Unleveraged, Inflation-Adjusted Discount R...

    APPENDIX G

    Time Series Charts of Unleveraged, Inflation-Adjusted Discount Rate Estimates

    FIGURE G.1 Comparison of Real Unleveraged Discount Rates, Group 1: Alcoa (AA), Boeing (BA), Bristol-Myers Squibb (BMY), Burlington Northern Santa Fe (BNI), Conagra (CAG)

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    FIGURE G.2 Comparison of Real Unleveraged Discount Rates, Group 2: Cardinal Health (CAH), Caterpillar (CAT), Campbell Soup (CPB), Chevron (CVX), DuPont (DD)

    image

    FIGURE G.3 Comparison of Real Unleveraged Discount Rates, Group 3: Disney (DIS), Dow Chemical (DOW), Eastman Kodak (EK), FedEx (FDX), General Dynamics (GD)

    image

    FIGURE G.4 Comparison of Real Unleveraged Discount Rates, Group 4: General Electric (GE), Home Depot (HD), Harrah’s Entertainment (HET), Honeywell (HON), Hewlett-Packard (HPQ)


      

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