Equity Analysis and Valuation

Question 1

Equity Securities: Characteristics

Answer 1

Question 2

Equity Securities: Cumulative Voting

Answer 2

Question 3

Equity Securities: Preferred Stock

Answer 3

Question 4

Equity Securities: Types of Preferred Stock

Answer 4

Question 5

Equity Securities: Convertible Preferred Stock

Answer 5

Question 6

Equity Securities: Callable and Putable Shares

Answer 6

Question 7

Equity Securities: Private Equity

Answer 7

Question 8

Equity Securities: Private Equity Investments

Answer 8

Question 9

Equity Securities: Investing in Foreign Equities

Answer 9

Question 10

Equity Securities: Depository Receipts

Answer 10

Question 11

Equity Securities: Investing in Foreign Securities

Answer 11

Question 12

Equity Securities: Return Characteristics of Equity

Answer 12

Question 13

Equity Securities: Risk Characteristics of Equity

Answer 13

Question 14

Equity Securities: Equity Issuance

Answer 14

Question 15

Equity Securities: Book and Market Value of Equity

Answer 15

Question 16

Equity Securities: ROE and Cost of Equity

Answer 16

Question 17

Industry/Company Analysis: Uses

Answer 17

Question 18

Industry/Company Analysis: Approaches to Industry Groupings

Answer 18

Question 19

Industry/Company Analysis: Commercial Classification Systems

Answer 19

Question 20

Industry/Company Analysis: Government Classification Systems

Answer 20

Question 21

Industry/Company Analysis: Business Cycle Sensitivity

Answer 21

Question 22

Industry/Company Analysis: Peer Groups

Answer 22

Question 23

Industry/Company Analysis: Elements of Industry Analysis

Answer 23

Question 24

Industry/Company Analysis: Porter’s Five Forces

Answer 24

Question 25

Industry/Company Analysis: Barriers to Entry

Answer 25

Question 26

Industry/Company Analysis: Industry Concentration

Answer 26

Question 27

Industry/Company Analysis: Industry Capacity

Answer 27

Question 28

Industry/Company Analysis: Market Share Stability

Answer 28

Question 29

Industry/Company Analysis: Industry Life Cycle

Answer 29

Question 30

Industry/Company Analysis: Limitations of Life-Cycle Analysis

Answer 30

Question 31

Industry/Company Analysis: Elements of Strategic Industry Analysis

Answer 31

Question 32

Industry/Company Analysis: External Industry Influences of Growth, Profitability, and Risk

Answer 32

Question 33

Industry/Company Analysis: Elements of Company Analysis

Answer 33

Question 34

Equity Valuation: Security Valuation

Answer 34

Question 35

Equity Valuation: Types of Equity Valuation Models

Answer 35

Question 36

Equity Valuation: Valuing Common stock - Multiple-Year Holding Period

Answer 36

Question 37

Equity Valuation: Valuing Common Stock - Example

Answer 37

Question 38

Equity Valuation: Dividend Discount Model

Answer 38

Question 39

Equity Valuation: Free Cash Flow to Equity Model

Answer 39

Question 40

Equity Valuation: FCFE Model Rationale

Answer 40

Question 41

Equity Valuation: Preferred Stock Valuation

Answer 41

Question 42

Equity Valuation: Growth (constant) Growth Model

Answer 42

Question 43

Equity Valuation: Growth Gordon Model - Example

Answer 43

Question 44

Equity Valuation: Estimating the Value of g

Answer 44

Question 45

Equity Valuation: Stock Valuation - Problem

Answer 45

Question 46

Equity Valuation: Multistage DDM

Answer 46

Question 47

Equity Valuation: Multistage DDM - Example

Answer 47

Question 48

Equity Valuation: Stock Valuation - Problem

Answer 48

Question 49

Equity Valuation: Dividend Discount Model Use - Gordon growth model

Answer 49

Question 50

Equity Valuation: Dividend Discount Model Use - 2-3-stage DDM

Answer 50

Question 51

Equity Valuation: P/E Based on Fundamentals

Answer 51

Question 52

Equity Valuation: P/E Based on Fundamentals Example

Answer 52

Question 53

Equity Valuation: Price Multiples

Answer 53

Question 54

Equity Valuation: Using Price Multiple Comparables

Answer 54

Question 55

Equity Valuation: Enterprise Value Multiples

Answer 55

Question 56

Equity Valuation: EV / EBITDA Multiple Example

Answer 56

Question 57

Equity Valuation: Asset-Based Models

Answer 57

Question 58

Equity Valuation: Present Value Models

Answer 58

Question 59

Equity Valuation: Multiplier Models

Answer 59

Question 60

Equity Valuation: Asset-Based Models - Pros/Cons

Answer 60

Question 61

Equity Valuation: Choice of Valuation Model

Answer 61