COURSE GUIDE
Course Title: Valuation Concepts and Methods
Course Code: Elec 2
Credit Units: 3 units
Course Description:
This course will provide the students with practical tools and methods to value a broad range of assets within a business entity. It covers
business valuation, equity valuation, fixed income valuation, and option valuation. Students should be able to utilize various capital and
investment management and techniques in making long-term business decisions such as the time value concept of money; capital
investment decision factors; non-discounted and discounted capital budgeting techniques; project screening, project ranking, and capital
rationing; and sensitivity analysis. Students should also be able to differentiate the different types and measurement of risks and apply
their relationships with the rate of returns.
Course Outcomes:
After completing the course, students will be able to:
1. Explain the role of the organization’s financial managers in realizing these strategic objectives.
2. Evaluate the different sources of corporate finance (e.g. equity, debt, retained earnings).
3. Explain the impact of risk and cost of capital on investment appraisal and how such factors affect the value of a capital project.
4. Explain how the corporation’s capital structure, payout policy and risk policy impact upon investment decisions.
Course Outline:
Time Frame Topics
Introduction
Week 1
Goals and Governance of the Corporation
Time Value of Money
Discounted Cash Flow Estimation
Week 2
Interest Rates and Bond Valuation
Equity Markets and Stock Evaluation
Net Present Value and Other Investment Criteria
Week 3 Making Capital Investment Decisions
Project Analysis
Risk and Return
Week 4
Cost of Capital
Leverage and Capital Structure
Week 5 Dividends and Dividends Policy
Raising Capital
Long-term Financial Planning
Week 6
Short-term Financial Planning
Mergers, Acquisitions and Corporate Control
Week 7 Options
Risk Management
Week 8 Working Capital Management (Bonus Topic)
Instructor:
Ray Patrick S. Guangco, CPA
Accountancy Program Coordinator
In case you have trouble in understanding the topics, please contact me:
Cellphone number: 09555661550
Facebook/Messenger: Ray Patrick Sajulga Guangco
Email: pguangco@ckcgingoog.ph.education