Author Archives: Hoferandrew

Investors in iconic electric vehicle company Tesla should take heed: The stock is overvalued. And its not just a little pricey. The odds are against the company’s financials being sufficient to justify the recent price Tesla: Great Company, Too Pricey While Elon Musk’s company has managed to pull off the improbable — supercharging the longstandingContinue reading “Looking at Tesla”

As the price of Bitcoin has skyrocketed in recent months, so has the amount of energy that procuring it hogs. Research shows that Bitcoin “mining” now uses 80 percent more energy than at the start of 2020. Billionaire philanthropist Bill Gates recently sounded the alarm on crypto, saying that he would not invest in BitcoinContinue reading “Why cryptocurrencies can’t and won’t succeed”

SummaryVolatility is a huge risk factor and source of inefficiency.Safety is a real issue.Unmanaged, largely unregulated nature present additional risks.Greater regulation of cryptocurrencies appears likely.Central bank backed digital currencies could derail cryptocurrencies.         The rise of cryptocurrencies over the last few years has created an unwelcome element of risk in a world economy and society alreadyContinue reading “Understanding Bitcoin”

Having developed an apparatus for dealing with uncertain streams we can now approach the heart of the cost-of-capital problem by dropping the assumption that firms cannot issue bonds. The introduction of debt-financing changes the market for shares in a very fundamental way. Because firms may have different proportions of debt in their capital structure, sharesContinue reading “Debt financing what is it and how to benefit”

Foreign exchange markets are the most liquid financial markets in practice. The traded volume has even increased within the last years: the daily average turnover on the foreign exchange spot market has surged to 621 billion US dollar in 2004 (cf. the triennial central bank survey by Galati et al. (2005)). But the enormous tradingContinue reading “An in depth look at how to reduce markey volatility”