Does the EVA valuation model explain the market value of equity better under changing required return than constant required return?

Through the Economic-Value-Added(EVA)valuation model,the expected market value of equity can be determined by adding the book value of equity with the present value of expected EVAs under the assumption of constant required return and constant return on equity.The equation of EVA valuation model has taken its shape under the assumption of constant required return and constant return on equity.However,a large body of empirical evidence indicates that required rate of return never remain constant.The EVA-valuation model formulated under constant required return cannot be implemented under the scenario of changing required return.In this study,we explored whether the EVA valuation model could be implemented under changing required return by making any changes in the model and found that it could be implemented under the scenario of changing required return by replacing the book value of the equity of the existing model with the present value of required earnings or normal market earnings.We further examined whether the explanatory ability of the EVA valuation model under the assumption of changing required return is better than that of the valuation model under the assumption of constant required return.Relative information content analyses were conducted by considering sample of the intrinsic value of equities determined by valuation models and the market value of equities of 69 large-cap,88 mid-cap,and 79 small-cap companies.The results showed that the EVA-based valuation model with changing normal market return outperformed the EVA-based valuation model with constant required return.

Investigation of the Spin Crossover Complex [Fe(bapbpy)(NCS)_2 ] in Its Low-spin and Highspin State by DFT/TD-DFT/BS-DFT Calculations

The spin crossover（SCO） compound [Fe（bapbpy）（NCS）2],where bapbpy contains two fused N,N-bis（2-pyridyl）amines,has been studied by DFT/TD-DFT/BS-DFT methods.Several density functionals and basis sets were used in the calculation to obtain optimized geometries of the compound in the low-（LS） and high-spin（HS） states.The vibrational modes and IR spectra,spin splitting energies,excited states and UV/Vis absorption spectra were obtained.The structural parameters of the calculated isolated complex are in good agreement with the X-ray data.We investigate three dimers of [Fe（bapbpy）（NCS）2] complex for their magnetic properties.It has been found that the complex（1,3） has ferromagnetic character while the others are antiferromagnetic in nature by using a broken symmetry approach in the DFT framework（BS-DFT） with support from the coupling constant values（J） and spin density plots.

Formation and Role of H_2O_2 During Ozonation of Nitrobenzene

To better understand the formation of H2O2 in the ozonation of nitrobenzene and its role for the oxidation,a batch reactor of nitrobenzene ozonation was set up.The variables such as pH value,ozone dosage,and the presence of hydroxyl radical scavenger were investigated.The results showed that high accumulations of H2O2 were generally formed at low pH values and low ozone dosages.Moreover,H2O2 mainly formed after nitrobenzene was oxidized by hydroxyl radical during ozonation of the intermediates,such as p-nitrophenol,which reacted with ozone quickly in water.A small amount of additional H2O2 enhanced the nitrobenzene removal slightly.The kinetic study showed that nitrobenzene degradation fitted with pseudo-second-order kinetics well in the experiment.The kinetic constant values correlated linearly with the concentrations of H2O2 added.Thus,it is expected that the H2O2 formed in oxidation of nitrobenzene may initiate ozone decomposition to form hydroxyl radical and finally enhance the degradation of aromatic compounds to a certain extent.

Interprocedural Constant Range Propagation and Alias Analysis by Multiple Version Method

A set of methods for interprocedural analysis is proposed. First, an ap-proach for interprocedural constant propagation is given. Then the concept of constant propagation is extended so as to meet the needs of data dependence analysis. Besides certain constant, constant range can also be propagated. The related propagating rules are introduced, and an idea for computing Return function is given. This approach can solve almost all interprocedural constant propagation problems with non-recursive calls. Second, a muItiple-version par-allelizing technique is also proposed for alias problem. The work related to this paper has been implemented on a shared-memory parallel computer.