Financial Statement Analysis Equity Investments VOLUME 3 CFA Institute - Solutions

Unlock the potential of your financial analysis skills with "Financial Statement Analysis Equity Investments VOLUME 3" by CFA Institute. Discover a treasure trove of resources including an online answers key, solutions manual, and comprehensive solutions PDF. Dive into expertly solved problems, detailed questions and answers, and a robust test bank. Benefit from chapter solutions and step-by-step answers crafted to enhance your understanding. Explore the textbook with confidence, supported by an instructor manual and the opportunity for a free download. Elevate your learning with these invaluable guides, tailored to provide unparalleled insights.

Identify at least seven additional sources of financial reporting information (beyond financial statements)that are useful for analysis.
Explain why financial statements are important to the decision-making process in financial analysis. Also, identify and discuss some of their limitations for analysis purposes.
Identify and discuss the four primary financial statements of a business.
Explain how financial statements reflect the business activities of a company.
Identify and discuss the four major activities of a business enterprise.
Identify at least five different internal and external users of financial statements.
Describe financial statement analysis and identify its objectives.
Describe the importance of accounting analysis for financial analysis.
What are the various component processes in business analysis? Explain with reference to equity analysis.
What is fundamental analysis? What is its main objective?
What are the main differences between credit analysis and equity analysis? How do these impact the financial statement information that is important for each type of analysis?
Describe the different types of business analysis. Identify the category of users of financial statements that applies to each different type of business analysis.
Explain the claim: Financial statement analysis is an integral part of business analysis.
Describe business analysis and identify its objectives.
describe asset-based valuation models and their use in estimating equity value
describe enterprise value multiples and their use in estimating equity value
calculate and interpret the following multiples: price to earnings, price to an estimate of operating cash flow, price to sales, and price to book value
explain the rationale for using price multiples to value equity, how the price to earnings multiple relates to fundamentals, and the use of multiples based on comparables
identify characteristics of companies for which the constant growth or a multistage dividend discount model is appropriate
calculate and interpret the intrinsic value of an equity security based on the Gordon (constant) growth dividend discount model or a two-stage dividend discount model, as appropriate
calculate the intrinsic value of a non-callable, non-convertible preferred stock
explain advantages and disadvantages of each category of valuation model
explain the rationale for using present value models to value equity and describe the dividend discount and free-cash-flow-to-equity models
describe dividend payment chronology
describe regular cash dividends, extra dividends, stock dividends, stock splits, reverse stock splits, and share repurchases
describe major categories of equity valuation models
evaluate whether a security, given its current market price and a value estimate, is overvalued, fairly valued, or undervalued by the market
describe the use of scenario analysis in forecasting
explain approaches to forecasting a company’s capital investments and capital structure
explain approaches to forecasting a company’s operating expenses and working capital
explain approaches to forecasting a company’s revenues
explain principles and approaches to forecasting a company’s financial results and position
evaluate the competitive strategy and position of a company
analyze an industry’s structure and external influences using Porter’s Five Forces and PESTLE frameworks
determine an industry’s size, growth characteristics, profitability, and market share trends
describe industry classification methods and compare methods by which companies can be grouped
describe the purposes of, and steps involved in, industry and competitive analysis
evaluate a company’s capital investments and capital structure
evaluate a company’s operating profitability and working capital using key measures
evaluate a company’s revenue and revenue drivers, including pricing power
determine a company’s business model
describe the elements that should be covered in a thorough company research report
compare a company’s cost of equity, its (accounting) return on equity, and investors’ required rates of return
contrast the market value and book value of equity securities
explain the role of equity securities in the financing of a company’s assets
compare the risk and return characteristics of different types of equity securities
describe methods for investing in non-domestic equity securities
compare and contrast public and private equity securities
describe differences in voting rights and other ownership characteristics among different equity classes
describe characteristics of types of equity securities
describe behavioral finance and its potential relevance to understanding market anomalies
describe market anomalies
explain the implications of each form of market efficiency for fundamental analysis, technical analysis, and the choice between active and passive portfolio management
explain factors that affect a market’s efficiency contrast weak-form, semi-strong-form, and strong-form market efficiency
contrast market value and intrinsic value
describe market efficiency and related concepts, including their importance to investment practitioners
describe indexes representing alternative investments
describe types of fixed-income indexes
compare types of security market indexes
describe types of equity indexes
describe uses of security market indexes
describe rebalancing and reconstitution of an index
calculate and analyze the value and return of an index given its weighting method
compare the different weighting methods used in index construction
describe the choices and issues in index construction and management
calculate and interpret the value, price return, and total return of an index
describe a security market index
describe objectives of market regulation
describe characteristics of a well-functioning financial system
describe how securities, contracts, and currencies are traded in quote-driven, order-driven, and brokered markets
define primary and secondary markets and explain how secondary markets support primary markets
compare market orders with limit orders
compare execution, validity, and clearing instructions
calculate and interpret the leverage ratio, the rate of return on a margin transaction, and the security price at which the investor would receive a margin call
compare positions an investor can take in an asset
describe types of financial intermediaries and services that they provide
describe the major types of securities, currencies, contracts, commodities, and real assets that trade in organized markets, including their distinguishing characteristics and major subtypes
describe classifications of assets and markets
explain the main functions of the financial system
explain considerations in the choice of an explicit forecast horizon and an analyst’s choices in developing projections beyond the short-term forecast horizon
explain how to forecast industry and company sales and costs when they are subject to price inflation or deflation
explain how the competitive position of a company based on a Porter’s five forces analysis affects prices and costs
explain how behavioral factors affect analyst forecasts and recommend remedial actions for analyst biases
demonstrate the development of a sales-based pro forma company model
describe how ratio analysis and other techniques can be used to model and forecast earnings
describe the uses of industry-specific ratios used in financial analysis
demonstrate the application of DuPont analysis of return on equity and calculate and interpret effects of changes in its components
describe relationships among ratios and evaluate a company using ratio analysis
calculate and interpret activity, liquidity, solvency, and profitability ratios
describe tools and techniques used in financial analysis, including their uses and limitations
describe accounting warning signs and methods for detecting manipulation of information in financial reports
describe accounting methods (choices and estimates) that could be used to manage earnings, cash flow, and balance sheet items
describe presentation choices, including non-GAAP measures, that could be used to influence an analyst’s opinion
describe mechanisms that discipline financial reporting quality and the potential limitations of those mechanisms
describe motivations that might cause management to issue financial reports that are not high quality and conditions that are conducive to issuing low-quality, or even fraudulent, financial reports
explain the difference between conservative and aggressive accounting
describe a spectrum for assessing financial reporting quality
compare financial reporting quality with the quality of reported results (including quality of earnings, cash flow, and balance sheet items)
analyze disclosures relating to deferred tax items and the effective tax rate reconciliation and explain how information included in these disclosures affects a company’s financial statements and financial ratios
calculate, interpret, and contrast an issuer’s effective tax rate, statutory tax rate, and cash tax rate

Showing 600 - 700 of 5656

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Financial Statement Analysis Equity Investments VOLUME 3 CFA Institute - Solutions

Step by Step Answers