Standard V (A) – Diligence and Reaso ...
Members and Candidates must: Exercise diligence, independence, and thoroughness in analyzing investments, making... Read More
Reading 18: Analysis of Dividends and Share Repurchases
-d. Explain how agency costs may affect a company’s payout policy;
-e. Explain factors that affect dividend policy in practice;
-h. Compare share repurchase methods;
-j. Calculate the effect of a share repurchase on book value per share;
-k. Explain the choice between paying cash dividends and repurchasing share;
-l. Describe broad trends in corporate payout policies;
-m. Calculate and interpret dividend coverage ratios based on 1) Net income and 2) Free cash flow;
-n. Identify characteristics of companies that may not be able to sustain their cash dividend;
Reading 19: Environmental, Social, and Governance (ESG) Considerations in Investment Analysis
-b. Evaluate the effectiveness of a company’s corporate governance policies and practices;
-d. Evaluate ESG risk exposures and investment opportunities related to a company;
Reading 20: Cost of Capital: Advanced Topics
-a. Explain top-down and bottom-up factors that impact the cost of capital;
-b. Compare methods used to estimate the cost of debt;
-c. Explain historical and forward-looking approaches to estimating an equity risk premium;
-d. Compare methods used to estimate the required return on equity;
-e. Estimate the cost of debt or required return on equity for a public and a private company;
-f. Evaluate a company’s capital structure and cost of capital relative to peers;
Reading 21: Corporate Restructuring
-a. Explain types of corporate restructurings and issuers’ motivations for pursuing them;
-b. Explain the initial evaluation of a corporate restructuring.;
-f. Evaluate corporate divestment actions, including sales and spin offs;
Offered by AnalystPrep
Daniel Glyn
2021-03-24
I have finished my FRM1 thanks to AnalystPrep. And now using AnalystPrep for my FRM2 preparation. Professor Forjan is brilliant. He gives such good explanations and analogies. And more than anything makes learning fun. A big thank you to Analystprep and Professor Forjan. 5 stars all the way!
michael walshe
2021-03-18
Professor James' videos are excellent for understanding the underlying theories behind financial engineering / financial analysis. The AnalystPrep videos were better than any of the others that I searched through on YouTube for providing a clear explanation of some concepts, such as Portfolio theory, CAPM, and Arbitrage Pricing theory. Watching these cleared up many of the unclarities I had in my head. Highly recommended.
Nyka Smith
2021-02-18
Every concept is very well explained by Nilay Arun. kudos to you man!
Badr Moubile
2021-02-13
Very helpfull!
Agustin Olcese
2021-01-27
Excellent explantions, very clear!
Jaak Jay
2021-01-14
Awesome content, kudos to Prof.James Frojan
sindhushree reddy
2021-01-07
Crisp and short ppt of Frm chapters and great explanation with examples.