11 research outputs found
The Application of the capital asset pricing model (CAPM): A south african perspective
The focus of this paper is the capital asset pricing model (CAPM), with a specific emphasis on two of its main components, namely the risk-free rate and beta. The CAPM is used extensively in practice to calculate the cost of equity, which, in turn, is used to calculate the weighted average cost of capital for equity valuation and investment appraisal purposes. The aim of this paper is to investigate how well valuation theory regarding the CAPM in particular, as advocated by academia, is aligned with the CAPM and alternative models that leading financial analysts and corporate financiers apply in practice. No study has yet compared the methods of choice of investment practitioners when calculating the cost of equity to that of academia. The research results revealed that, although both academia and investment practitioners favor the CAPM, they disagree significantly with regard to the components of the CAPM and the use of alternative models. ©2011 Academic Journals.Articl
The use of multiples in the South African equity market: is the popularity of the price earnings ratio justifiable from a sector perspective?
The price earnings (P/E) ratio is generally regarded as the most popular multiple used to value equity in practice. Although this is supported by evidence from practice, the use of the P/E ratio has not been substantiated by evidence from research. This article investigates the accuracy of the five most popular multiples, including the P/E ratio, in valuing the equity of South African companies listed on the JSE Securities Exchange, for the period 1988 to 2007. The research results revealed that the P/E ratio does not perform the most accurate valuations across all sectors and that different multiples should be used for different sectors. There is an opportunity to enhance the accuracy of equity valuations based on multiples by employing multiples other than the P/E ratio.Equity valuation, Multiples, Price earnings ratio, Valuation errors
Methods of choice in the valuation of ordinary shareholders’ equity: evidence from theory and practice
The question that inevitably surfaces in practice, and certainly in lecture halls, is which equity valuation method is superior. Popular opinion holds that academia and investment practitioners may have different preferences in this regard. This article investigates which primary minority and majority equity valuation methods are advocated by academia, and how well these preferences are aligned with the equity valuation methods that investment practitioners apply in practice. The research results reveal that, contrary to popular belief, academia and practice are fairly well aligned in terms of preferred equity valuation methods, with notable differences in their respective approaches.Discounted cash flow, Discounts, Dividend growth model, Earnings before interest, Equity valuation, Free cash flow, Majority interest, Minority interest, Premiums
How suitable are available pharmaceuticals for the treatment of sexually transmitted diseases? (2) Conditions presenting as sores or tumours
Can the mining industry in South Africa kick-start a second development phase to alleviate poverty and inequality?
Production of Bacteriocin ST33LD, Produced by Leuconostoc mesenteroides subsp. mesenteroides, as Recorded in the Presence of Different Medium Components
Superparamagnetic iron oxide nanoparticles (SPIONs): Development, surface modification and applications in chemotherapy
At present, nanoparticles are used for various biomedical applications where they facilitate laboratory diagnostics and therapeutics. More specifically for drug delivery purposes, the use of nanoparticles is attracting increasing attention due to their unique capabilities and their negligible side effects not only in cancer therapy but also in the treatment of other ailments. Among all types of nanoparticles, biocompatible superparamagnetic iron oxide nanoparticles (SPIONs) with proper surface architecture and conjugated targeting ligands/proteins have attracted a great deal of attention for drug delivery applications.
This review covers recent advances in the development of SPIONs together with their possibilities and limitations from fabrication to application in drug delivery. In addition, the state-of-the-art synthetic routes and surface modification of desired SPIONs for drug delivery purposes are described
Pooled analysis of WHO Surgical Safety Checklist use and mortality after emergency laparotomy
Background: The World Health Organization (WHO) Surgical Safety Checklist has fostered safe practice for 10 years, yet its place in emergency surgery has not been assessed on a global scale. The aim of this study was to evaluate reported checklist use in emergency settings and examine the relationship with perioperative mortality in patients who had emergency laparotomy.
Methods: In two multinational cohort studies, adults undergoing emergency laparotomy were compared with those having elective gastrointestinal surgery. Relationships between reported checklist use and mortality were determined using multivariable logistic regression and bootstrapped simulation.
Results: Of 12 296 patients included from 76 countries, 4843 underwent emergency laparotomy. After adjusting for patient and disease factors, checklist use before emergency laparotomy was more common in countries with a high Human Development Index (HDI) (2455 of 2741, 89·6 per cent) compared with that in countries with a middle (753 of 1242, 60·6 per cent; odds ratio (OR) 0·17, 95 per cent c.i. 0·14 to 0·21, P < 0·001) or low (363 of 860, 42·2 per cent; OR 0·08, 0·07 to 0·10, P < 0·001) HDI. Checklist use was less common in elective surgery than for emergency laparotomy in high-HDI countries (risk difference -9·4 (95 per cent c.i. -11·9 to -6·9) per cent; P < 0·001), but the relationship was reversed in low-HDI countries (+12·1 (+7·0 to +17·3) per cent; P < 0·001). In multivariable models, checklist use was associated with a lower 30-day perioperative mortality (OR 0·60, 0·50 to 0·73; P < 0·001). The greatest absolute benefit was seen for emergency surgery in low- and middle-HDI countries.
Conclusion: Checklist use in emergency laparotomy was associated with a significantly lower perioperative mortality rate. Checklist use in low-HDI countries was half that in high-HDI countries