Week 8 Finc 351 and 440

Finc 351:

Final Exam

--Will send as soon as it is released

Finc 440:

Discussion:

1. Present Valuation of Financial and Banking Institution  -

Post the results of the valuation that you prepared of a financial and banking institution. 

What are the results of the valuation analysis? 

What special problems were encountered in the valuation?

 2.  Challenges of Firms With Negative, Low or Abnormal Earnings  -

What are some of the challenges, issues and remedies associated with valuing firms with negative, low or otherwise abnormal earnings?

 3.  Most Important Things Learned  –

What are the most important things you learned from the study of this week’s readings and assignments?

Assignment:

Prepare a valuation of a large financial and banking institution.  This should involve: (1) Dividend Discount Model valuation; and, (2) Valuation by Comparables (use multiples – Price to Earnings Ratio, Price to Book Value Ratio, etc.; Morningstar.com has several ratios under “Valuation”).

Explain the principal assumptions used in the DDM valuation?

Are the valuations consistent – why or why not?

What special challenges or issues did you encounter with the valuations?