BUS5111- Financial Management

Learning Guide Unit 5

Unit 5: Methods of Computing Company Valuations

Topics:

· Market Capitalization and its Measurement

· Accounting Book Value and its Implications

· Valuation of Expected Future Earnings

Learning Objectives:

By the end of this Unit, you will be able to:

1. Evaluate market capitalization of a company.

2. Discuss the advantages and disadvantages of market cap and the book value method.

3. Develop the skills for identifying cash, identifying cash outflows, and applying time-value of money methods (NPV) to company valuation methods.

Tasks:

· Peer assess Unit 4 Written Assignment

· Read the Learning Guide and Reading Assignments

· Participate in the Discussion Assignment (post, comment, and rate in the Discussion Forum)

· Complete and submit the Written Assignment

· Respond to the Portfolio Activity