Study Guide and Practice Questions

Readings, Videos, and Guided Examples

Provided below are details for the reading, videos, and Guided Examples for this week, which are sourced from myBusinessCourse (MBC). You should cover and attempt these MBC resources and activities, as well as the Practice Problems (with solutions) for this week's self-study.
	Readings	eLecture Videos	Guided Examples
Module 12	12-1 to 12-18	eLecture 12-1 eLecture 12-2 eLecture 12-3 eLecture 12-4	Review 12-1: Pas 12-11 Present value of future dividends and future selling price; Price of the stock Review 12-2: Page 12-14 Beta value; Cost of equity capital Review 12-3: Page 12-16 After-tax cost of debt capital Review 12-4: Page 12-18 Weighted average cost of capital (WACC)
Module 14	14-1 to 14-18	eLecture 14-1 eLecture 14-2 eLecture 14-3 eLecture 14-4	Review 14-1: Page 14-16 Equity valuation models (Dividend discount model; DCF model; ROPI model) Review 14-2: Page 14-11 Apply ROPI to obtain the stock price estimate; Compare it with the actual stock price Review 14-3: Page 14-15 Steady state in valuation Review 14-4: Page 14-18 For each of the operating activities: explain the likely effect on ROPI (NOPAT and NOA); identify the potential negative consequences
Module 15	15-12 to 15-23	eLecture 15-3 eLecture 15-4	Review 15-3: Page 15-18, 19 Equity intrinsic value and PB/PE ratios Review 15-4: Page 15-22, 23 Interpreting and reverse engineering the PB ratio