A companion workbook for the Second Edition of Equity Asset Valuation In the Second Edition of Equity Asset Valuation, experts Jerald Pinto, Elaine Henry, Thomas Robinson, and John Stowe, fully detail the contemporary techniques used to determine the intrinsic value of an equity security, and show you how to successfully apply these techniques in both foreign and domestic markets. In the Second Edition of the Equity Asset Valuation Workbook, they offer you a wealth of practical information and exercises that will further enhance your understanding of this discipline. This detailed study guide-which parallels the Second Edition of Equity Asset Valuation chapter by chapter-contains concise summary overviews of the chapters, challenging problems, and a complete set of solutions. An all-inclusive study companion to the Second Edition of Equity Asset Valuation Topics covered include the equity valuation process, discounted dividend valuation, free cash flow valuation, and residual income valuation Challenges readers with question/answer sections for each chapter in the main book Engaging and accessible, the Second Edition of the Equity Asset Valuation Workbook reviews essential concepts you must be familiar with in order to excel at this endeavor.

Table of Contents

PART I Learning Outcomes, Summary Overview, and Problems CHAPTER 1 Equity Valuation: Applications and Processes 3 Learning Outcomes 3 Summary Overview 3 Problems 5 CHAPTER 2 Return Concepts 7 Learning Outcomes 7 Summary Overview 7 Problems 9 CHAPTER 3 Discounted Dividend Valuation 13 Learning Outcomes 13 Summary Overview 14 Problems 16 CHAPTER 4 Free Cash Flow Valuation 25 Learning Outcomes 25 Summary Overview 26 Problems 28 CHAPTER 5 Residual Income Valuation 41 Learning Outcomes 41 Summary Overview 42 Problems 43 CHAPTER 6 Market-Based Valuation: Price and Enterprise Value Multiples 49 Learning Outcomes 49 Summary Overview 50 Problems 52 CHAPTER 7 Private Company Valuation 59 Learning Outcomes 59 Summary Overview 60 Problems 61 PART II Solutions CHAPTER 1 Equity Valuation: Applications and Processes 71 Solutions 71 CHAPTER 2 Return Concepts 73 Solutions 73 CHAPTER 3 Discounted Dividend Valuation 77 Solutions 77 CHAPTER 4 Free Cash Flow Valuation 85 Solutions 85 CHAPTER 5 Residual Income Valuation 99 Solutions 99 CHAPTER 6 Market-Based Valuation: Price and Enterprise Value Multiples 107 Solutions 107 CHAPTER 7 Private Company Valuation 113 Solutions 113 About the CFA Program 117

Author Biography

JERALD E. PINTO, PhD, CFA, is Director, Curriculum Projects, in the Education Division at CFA Institute. Before coming to CFA Institute in 2002, he consulted to corporations, foundations, and partnerships in investment planning, portfolio analysis, valuation, and quantitative analysis. Pinto also worked in the investment and banking industries in New York and taught finance at NYU's Stern School of Business. He holds an MBA from Baruch College, a PhD in finance from the Stern School, and is a member of CFA Virginia. ELAINE HENRY, PhD, CFA, is an Assistant Professor of Accounting at the University of Miami, where she teaches courses in accounting, financial statement analysis, and valuation. After working in corporate finance at Lehman Brothers, strategy consulting at McKinsey & Company, and corporate banking at Citibank, she obtained a PhD from Rutgers University where she majored in accounting and minored in finance. THOMAS R. ROBINSON, PhD, CFA, CPA, CFP, is Managing Director of the Education Division at CFA Institute. He joined CFA Institute as head of educational content in 2007 from the University of Miami, where he was an associate professor of accounting and director of the Master of Professional Accounting Program. Robinson was also concurrently managing director of a private wealth investment advisory firm. He was active locally and nationally with the CFA Institute prior to joining the staff. JOHN D. STOWE, PhD, CFA, is O'Bleness Chair Professor of Finance at Ohio University. He previously served as Head of Curriculum Development and Director of Exam Development at CFA Institute. Stowe has also been professor of finance and associate dean at the University of Missouri--Columbia, where he taught investments and corporate finance. Stowe has won several teaching awards and has published frequently in academic and professional journals in finance. He is also coauthor of a college-level textbook in corporate finance. Stowe earned his BA from Centenary College and his PhD in economics from the University of Houston. He obtained his CFA charter in 1995.