Oditor, Vol. IV,No. 02/2018
MATHEMATICAL MODEL FOR DETERMINING THE PRICE OF SHARES – WITH THE IMPACT OF INFLATION
Date received: 13.07.2017.
Date accepted: 24.07.2017.
JEL: C19, E39.
For investment decisions is developed larger number of mathematical models. The model has two parts, the function of the criteria and system limitations. Function criterion represents a special way, the aim sought to be achieved by solving problems. Since it expresses the quality of the individual solutions, it serves as a measure of comparison in choosing the best solution. The system consists of a quantitative restriction limiting factors expressed in the functioning of the economic system.
These restrictions are a result of limited resources or other characteristics of the system. The system limits determine the scope of permissible solutions of solving problems. Mathematical models represent an important and useful tool in determining the price of shares in the context of investment decisions.
Key words: action, dividend, market value, discounted, cash flow, inflation, price.