Finc 440 and Finc 351 Week One

Homework 8/17/14

Finc 440: Security Analysis and Valuation

Discussion:

1. Role of Valuation -

Explain the role of valuation in the field of financial management? What are several examples of how a company might use the valuation process?

2. Bias in Valuation and Equity Research –

What are the risks of bias and how concerned should financial managers be about bias in the process of valuation and equity research? What specific things can analysts (or students) do to prevent bias from contaminating valuation and equity research work?

3. Profiting from Valuation Research –

It might be observed that to profit from valuation and equity research, an analyst needs to assume or believe that markets are inefficient. Do you agree with that view or is it appropriate to assume that markets are efficient and that valuation and equity research can be profitable because they deliver superior insight about future performance?

4. Present Results of Financial Ratio Analysis -

Post the results of the Financial Ratio Analysis that you prepared for this week’s assignment that is to be submitted to the Gradebook (see instructions below).

5. Most Important Things Learned –

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

Assignment - Financial Ratio Analysis:

Using the Financial Ratio Analysis Model (excel document) and data from the Mergent financial database (Library), prepare a financial ratio analysis of the company that you selected. What are the principal conclusions (strengths and weaknesses) that you derive from this analysis (this requires a written analysis)?

Finc 351 Risk Management:

Book is online—login information will be provided upon agreement

Discussion Questions:

Ch 1: Question 4

Ch 2: Question 3

Ch 3: Question 4

These questions are located in the Application Questions of the end of each chapter.

Homework Questions:

Chapter 1 Review and Practice Questions # 1,4,5,6,7,8,13,14