Corporate Finance #9 Valuation-Bond, Common /Preferred Stock

Corporate Finance #9 Valuation-Bond, Common /Preferred Stock

Corporate Finance #9 Valuation-Bond, Common /Preferred Stock

Learn to value bonds, common stock, and preferred stock from a Certified Public Accountant (CPA)

Language: english

Note: 4.1/5 (47 notes) 22,906 students

Instructor(s): Robert (Bob) Steele

Last update: 2022-02-17

What you’ll learn

  • Explain valuation methods for financial assets
  • Calculate the valuation of bonds
  • Calculate the valuation of preferred stock
  • Calculate the valuation of common stock

 

Requirements

  • A general understanding of corporate finance concepts

 

Description

This course will cover the valuation of financial assets including bonds, common stock, and preferred stock.

We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.

The general concept used to value financial assets is to take the present value of future cash flows from the financial asset. Therefore, we will need to use present value concepts and calculations.

The cash flow related to bonds will generally consist of a series of interest payments and a principal payment at maturity of the bond. We can use annuity calculations to determine the present value of the interest payments and present value of one calculation to determine the present value of principal at maturity.

Preferred stock has characteristics similar to bonds in that the payments are often standardized. However, we do not have a maturity date as we do with bonds.

Common stock can be more complex as we consider the future cash flow of dividends in an attempt to value the securities. The common stock dividends are more likely to change over time and we do not have a maturity date as we do with bonds.

 

Who this course is for

  • Business students
  • Business professionals

 

Course content

  • Introduction
    • 1003 Financial Asset Valuation
    • 1005 Bond Issued at Par
    • 1010 Bonds Market Rate vs Contract Rate
    • 1015 Issue bond at a discount%2C calculate%2C and record interest payment
    • 1020 Bond Issued at Premium 7min
    • 1025 Bonds Present Value Formulas
    • 1030 Bond Price Present Value Tables
    • 1035 Bond Price Excel Formula
    • 1040 Preferred Stock Valuation
    • 1045 Common Stock Valuation
  • Practice Probs. – Valuation Bonds, Common Stock & Preferred Stock
    • OneNote Resource
    • 1011 Bond Value Different Yield Rates Prob 1
    • 1012 Bond Value Different Yield Rates Prob 2
    • 1014 Principal as a % of bond price
    • 1015 Bond Value Different Maturity Dates
    • 1018 Bond Sale Percentage Profit (ROI)
    • 1020 Bond Sale Percentage Profit (ROI) Long Term Sale
    • 1023 Calculate Bond Rate & Change in Rate
    • 1025 Calculate Bond Rate & Change in Rate Prob. 2
    • 1028 Find Bond Market Rate or Yield
    • 1030 Find Bond market Rate or yield Semiannual
    • 1031 Bond Value Semiannual Payments
    • 1032 Bond Value Semiannual Rate Change
  • Excel Probs. – Valuation Bonds, Common Stock & Preferred Stock
    • 1011 Bond Value Different Yield Rates Prob 1
    • 1012 Bond Value Different Yield Rates Prob 2
    • 1014 Principal as a % of bond price
    • 1015 Bond Value Different Maturity Dates
    • 1018 Bond Sale Percentage Profit (ROI)
    • 1020 Bond Sale Percentage Profit (ROI) Long Term Sale
    • 1023 Calculate Bond Rate & Change in Rate
    • 1025 Find Bond Market Rate or Yield
    • 1028 Calculate Bond Rate & Change in Rate Prob. 2
    • 1030 Find Bond Market Rate or Yield Semiannual
    • 1031 Bond Value Semiannual Payments
    • 1032 Bond Value Semiannual Rate Change
    • 1034 Preferred Stock Value
    • 1036 Preferred Stock Yield or Rate of Return
    • 1037 Common Stock Price No Growth Assumed
    • 1038 Common Stock Value Calculate Stable Growth 9min
    • 1041 Estimated Earnings Per Share & Dividends
    • 1042 Common Stock Rate of Return Constant Growth Rate
    • 1044 Common Stock Value Multiple Methods

 

Corporate Finance #9 Valuation-Bond, Common /Preferred StockCorporate Finance #9 Valuation-Bond, Common /Preferred Stock

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