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Security Analysis

General

Prefix

FIRE

Course Number

474

Course Level

Undergraduate

College/School

Herberger Business School

Description

Equity valuation application, process, and analysis, discount rate estimate, capital asset pricing model, multifactor models. Introduction of valuation models such as discounted dividend valuation model, free cash flow valuation model, and relative valuation technique.

Prerequisites

Credits

Min

3

Max

3

Repeatable

No

Goals and Diversity

MN Goal Course

No

Cultural Diversity

No

Learning Outcomes

Outcome

Describe the application and process of equity valuation and apply top-down approach to the valuation of an individual security.

Outcome

Apply capital market theory, capital asset pricing model, and multifactor models to estimate the return for a portfolio or an individual security.

Outcome

Apply discounted cash flow valuation technique including dividend discount model and free cash flow model to determine equity and firm value.

Outcome

Apply relative valuation technique to determine equity and firm value.

Course Outline

Course Outline

Description of valuation application, process, and analysis - 10% Application of capital market theory, capital asset pricing model, multifactor models, and build-up methods to estimate the return for an investment - 20% Application of dividend discount model to value stocks - 20% Application of free cash flow model to value stocks and firms - 20% Application of relative valuation technique to value stocks and firms - 20% Application of spreadsheets in security valuation and data analysis - 10%

Dependencies

Programs

FIRE474 is a completion requirement for: