BOOK 4 — EQUITY INVESTMENTS AND ALTERNATIVE ASSET VALUATION Readings and Learning Outcome Statemients Study Session 10 - Equity Investments: Valuation Concepts..... Study Session 11 ~ Equity Investments: in a Global Context.. Industry and Company Analysis ++ 197 Study Session 12 — Equity Investments: Valuation Models... Self-Test - Equity Investments Study Session 13 — Alternative Asset Valuation ee 463 Self-Test — Alternative Investments. Formulas. 467 Index.Pace 2 LEVEL 2 BOOK 4: EQUITY INVESTMENTS AND ALTERNATIVE ASSET VALUATION ©2008 Kaplan Schweser. All rights reserved. Published in September 2008 by Kaplan Schweser. Printed in the United States of America, ISBN: 1-60373-237-3 / 978-1-60373-237-6 PPN: 45548CFA If this book does not have the hologram with the Kaplan Schweser iogo on the back cover, ie was distributed withour permission of Kaplan Schweser, 2 Division of Kaplan, lnc., and is in direct violation of global copyright laws. Your assistance in pursuing potential violators of this law is greatly appreciated, Required CFA Inscitute® disclaimer: "CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. CRA Insciuce (formerly che Association for Investment Management and Research) does not endorse, promore, review, oF watrant the accuracy of the products or services offered by Kaplan Sehweser” Certain materials contained within this text are che copyrighted property of CFA Institute, The following is the copyright disclosure for these materials: “Copyright, 2009, CFA Insticute. Reproduced and republished from 2009 Learning Outcome Statements, Level 1, 2, and 3 questions from CFA® Program Marerials, CFA Insticute Standards of Professional Conduct, and CFA Institute's Global Investment Performance Standards wich permission from CFA Institute. All Rights Reserved.” ‘These materials may noc be copied without written permission from the author. The unauthorized duplication ofthese notes is a violation of global copyright laws and the CFA lnsticute Code of Echics, Your assistance in pursuing potential violators of eis law is greatly appreciated Disclaimer: The Schweser Notes should be used in conjunction with the original readings as set forth by CFA Insticuce in their 2009 CFA Level 2 Study Guide. The information contained in these Notes covers opics contained in the readings referenced by CFA Insticute and is believed to be accurate. However, their accuracy cannot be guaranteed nor is any warranty conveyed as to your ultimate exam success. The authors of the referenced teadings have not endorsed or sponsored these Notes. ©2008 Kaplan SchweseeREADINGS AND LEARNING OUTCOME STATEMENTS READINGS The following material is « review of the Equity Investments and Alternative Asset Valuation principles designed to address the learning outcome statements set forth by CFA Institute. STUDY SESSION 10 Reading Assignments Asset Valuation and Equity, CEA Program Cusriculum, Volume 4, Level 2 (CEA Institute, 2008) 33. A Note on Asset Valuation 34. The Equity Valuation Process 35. Equity: Markets and Instruments 36. Return Concepts STUDY SESSION 11 Reading Assignments Asset Valuation and Equity, CEA Program Curriculum, Volume 4, Level 2 (CFA Institute, 2008) 37. Equity: Concepis and Techniques 38. The Five Competitive Forces that Shape Strategy 39. Indusery Analysis 40. Valuation in Emerging Markets 41, Discounted Dividend Valuation STUDY SESSION 12 Reading Assignments Asset Valuation and Equity, CFA Program Curriculum, Volume 4, Level 2 (CFA Instituce, 2008) 42. Free Cash Flow Valuation 43, Market-Based Valuation: Price Multiples 44, U.S. Portfolio Strategy: Seeking Value—Anatomy of Valuation 45. Residual Income Valuation ©2008 Kaplan Schweser page 13 page 15 page 28 page 48 page 71 page 98 page 116 page 128 page 149 page 197 page 242 page 286 page 292 Page 3