Taylor Martin

University of California Los Angeles, CA

mathtm.blogspot.com

I am a recent graduate in applied mathematics at UCLA and currently trying to break into the quantitative investment/trading industry while also continuing to pursue advanced graduate-level mathematics as both a hobby and career necessity.

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awarded Student
Jul
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comment Logic behind Gordon Growth Model in a DCF analysis?
Actually, even worse, they discount the terminal value by the WACC, even though the terminal value was computed from individually discounted cash flows! So they double-discount it appears...
Jul
16
comment Logic behind Gordon Growth Model in a DCF analysis?
Your question doesn't resolve the problem. First, you are assuming my first comment from my edit: you are assuming in the second "equality" that $F_{i}=F_{1}(1+g)^{i}$ for $1<i\leq 5$. If we accept this approximation, then my $V_{1}$ becomes your $V_{1}$ and I am satisfied. However, see investopedia.com/university/dcf/dcf4.asp as an example of what every DCF tutorial does: they add $V_{1}$ and the cash flows $F_{1},\ldots,F_{5}$ (after discounting), so that those cash flows are then double-counted.
Jul
16
comment Logic behind Gordon Growth Model in a DCF analysis?
Your question doesn't resolve the issue.
Jul
16
revised Logic behind Gordon Growth Model in a DCF analysis?
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revised Logic behind Gordon Growth Model in a DCF analysis?
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revised Logic behind Gordon Growth Model in a DCF analysis?
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Jul
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revised Logic behind Gordon Growth Model in a DCF analysis?
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asked Logic behind Gordon Growth Model in a DCF analysis?
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awarded Inquisitive
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awarded Curious
Jun
22
comment Computing the norm of operator when space is equipped with sup norm and $L^1$ norm
For the example sequence of continuous functions of $L1$ norm $1$ we have $|\phi(f_{n})|\to\infty$ as $n\to\infty$ by construction of the Dirac functions outlined above. Do you see this at least? Therefore, since $||\phi||\geq|\phi(f_{n})|$ for all $n$, the claim follows.
Jun
22
comment Computing the norm of operator when space is equipped with sup norm and $L^1$ norm
I'm not sure why you're being asked such a question if you don't follow (b). Dirac functions to which I am referring are nonnegative bump functions that spike near the origin and approach 0 elsewhere (rapidly), but such that their total integral is always $1$. In particular, they belong to the class of functions you must consider in evaluating the $\sup$ appearing in the definiton of $||\phi||$.
Jun
22
awarded Citizen Patrol
Jun
22
comment Computing the norm of operator when space is equipped with sup norm and $L^1$ norm
If you followed hint you would quickly see $||\phi||=\infty$ since the example sequence of sample norms in the hint is unbounded.
Jun
22
comment Computing the norm of operator when space is equipped with sup norm and $L^1$ norm
See my edit for (a). I made a slight oversight and you are correct about your comment.
Jun
22
revised Computing the norm of operator when space is equipped with sup norm and $L^1$ norm
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