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Explore why businesses and equity are valued for mergers and acquisitions, initial public offerings, tax implications, loan collateral, and shareholder transactions, using asset, income, and cash flow models.
Assess asset-based valuation models, using net book value and net tangible assets, excluding intangible assets unless market-valued, to establish a floor value and compare with realisable or replacement bases.
Explore income-based valuation models, focusing on the price-to-earnings ratio and earnings yield, showing how PE equals price per share over EPS and price per share equals PE times EPS.
Explore debt valuation by valuing irredeemable bonds and redeemable debt, using coupon income, after-tax returns, and present value techniques with annuity and discount factors.
Learn how convertible bonds blend interest payments, redemption, and potential equity conversion; determine minimum market price, conversion value, and present value using annuity and discount factors.
Valuation of preferred shares uses the ex-dividend value, equal to annual dividend divided by cost of preference shares, not tax deductible, illustrated by 8% of 100 divided by 9%.
Explore how share value is derived from expected future dividends and cost of capital. Assess efficiency, liquidity, and pricing anomalies—stock splits, calendar effects, and behavioral finance—that influence valuation.
Reviews So Far:
"Fantastic Experience."
"The course is really good. I had problems with business valuations during the FM march 2019 exams, but I am finding it easier and I am understanding the concept better."
"I learned a lot. Some of it was above my head at this point. I would have benefited from a little more explanation & 1 or 2 more opportunities to practice for each of the new concepts."
"nice explanations, Thanks"
"Excellent"
"Good course. God bless you."
"Good way of teaching"
"This is a good introduction course. Congratulations to anyone envolved."
"very good concise content. instructor is very knowlegeable and able to summarize info rapidly"
"I am not a ACCA student so am not preparing for the exam. It is solely for my own interest. The training program did provide a clear explanations. Able to gain an understanding of the subject quickly. As for how realistic it is to the real world, I can't comment as I have never worked in this field. Therefore it is a 4 star instead of 5 star."
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This course covers the Business Valuations section of the ACCA Financial Management (FM) paper.
The topics covered are:
1. Nature and purpose of the valuation of business and financial assets.
2. Models for the valuation of shares.
3. The valuation of debt and other financial assets.
4. Efficient Market Hypothesis (EMH) and practical considerations in the valuation of shares.