| |
Dec 15, 2025
|
|
|
|
|
MFE 6250 - Financial Managment and Equity Valuation
This course presents tools and theories used by investors to identify and evaluate equities and examines in depth the relationship between investment risks and returns. It has two modules. The first module is based on financial management. It covers finance and investment decisions from the profit-maximizing firm’s perspective. The second module is based on equity valuation. It covers the principles of valuation for common stock (equities) and the principles of portfolio management for equity portfolios.
Requisites:
Credit Hours: 4
Repeat/Retake Information: May not be retaken.
Lecture/Lab Hours: 4.0 lecture
Grades: Eligible Grades: A-F,WP,WF,WN,FN,AU,I
Learning Outcomes:
- Students will be able to analyze the features and benefits of securities issued by corporations, institutions and governments.
- Students will be able to compare major pricing theory models including CAPM, APT and F-F 3 factor models.
- Students will be able to calculate the value of a financial asset based on a valuation model.
- Students will be able to analyze agency problems in corporate governance.
- Students will be able to analyze the cost of capital and how it relates to a firm’s growth prospects.
- Students will be able to explain various equity valuation models and select the appropriate ones to value a given company.
- Students will be able to estimate the required return on an equity investment.
- Students will be able to apply dividend discount models to value a company’s common shares.
- Students will be able to estimate stock values using market-based price and enterprise value multiples.
- Students will be able to calculate residual income and use residual income valuation models to value shares.
- Students will be able to determine whether a stock is overvalued, fairly valued, or undervalued by using appropriate equity valuation techniques.
Add to Portfolio (opens a new window)
|
|
