Finance School of management Chapter 7 Contents The relationship between The law of one price an assets value price arbitrage Value maximization Interest rates the law financial decisions of one price Accounting measures of Exchange rates value triangular arbitrage How information is Ⅴ aluation using reflected in security comparables prices Valuation models The efficient markets hypothesis uesTc2 Finance School of Management Chapter 7 Contents ❖ The relationship between an asset’s value & price ❖ Value maximization & financial decisions ❖ Accounting measures of value ❖ How information is reflected in security prices ❖ The efficient markets hypothesis ❖ The law of one price & arbitrage ❖ Interest rates & the law of one price ❖ Exchange rates & triangular arbitrage ❖ Valuation using comparables ❖ Valuation Models