The valuation of securities and practical issues – ACCA Financial Management (FM)
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Hi Sir,
What about the valuation using discounted cash flows am I missing it in these 3 chapters or it is explained to us in a different chapter?
Thank you
Hi Sir, the technical article says that net realisable value is the best approach for asset basis however here you say its the replacement cost. Which is right?
Neither the article nor my lectures say that one approach is always the best. Which approach is the most suitable depends on who is placing a value on the company, and why. That is something you need to be able to discuss in the exam (given that 50% of the exam is discussion).
Hi sir,
For confirmation,
Do we need to value intangible assets( brand value, goodwill,..) for the valuation of equity based on Replacement value.
It just contradicted with your notes.
It does not contradict my notes.
The maximum you would pay for the company would be how much it would cost to buy the same assets and create the company yourself (i.e. the replacement value of the assets). However if the company already has goodwill and so is already making profits then you would likely be prepared to pay more. You will not be expected to value goodwill in the exam.
Hi sir i have a question , are these lectures and enough for this paper ? or do we need to study book along with these notes ? thank you x
You do not really need a study text if you are watching all the lectures. However it is vital that you buy a Revision Kit from one of the ACCA approved publishers. They contain lots of past exam and exam-standard questions for practice, and practice is essential to passing the exam.