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Corporate Finance #9 - Bond, Common And Preferred Stock Valuation

Learn the valuation methods for financial assets including bonds, common stock, and preferred stock. Read more.

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Course Skill Level
Intermediate
Time Estimate
9h 5m

Robert (Bob) Steele CPA, CGMA, M.S. Tax, CPI

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About This Course

Who this course is for:

  • Business students
  • Business professionals

What you’ll learn: 

  • Explain valuation methods for financial assets
  • Calculate the valuation of bonds
  • Calculate the valuation of preferred stock
  • Calculate the valuation of common stock

Requirements: 

  • A general understanding of corporate finance concepts

This course will cover the valuation of financial assets including bonds, common stock, and preferred stock.

We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.

The general concept used to value financial assets is to take the present value of future cash flows from the financial asset. Therefore, we will need to use present value concepts and calculations.

The cash flow related to bonds will generally consist of a series of interest payments and a principal payment at maturity of the bond. We can use annuity calculations to determine the present value of the interest payments and present value of one calculation to determine the present value of principal at maturity.

Preferred stock has characteristics similar to bonds in that the payments are often standardized. However, we do not have a maturity date as we do with bonds.

Common stock can be more complex as we consider the future cash flow of dividends in an attempt to value the securities. The common stock dividends are more likely to change over time and we do not have a maturity date as we do with bonds.

Our Promise to You

By the end of this course, you will have learned how to calculate valuations of financial assets. 

10 Day Money Back Guarantee. If you are unsatisfied for any reason, simply contact us and we’ll give you a full refund. No questions asked.

Get started today and learn more about valuation.

Course Curriculum

Section 1 - Introduction
Financial Asset Valuation 00:00:00
Bond Issued At Par 00:00:00
Bonds Market Rate Vs Contract Rate 00:00:00
Issue Bond At A Discount%2C Calculate%2C And Record Interest Payment 00:00:00
Bond Issued At Premium 00:00:00
Bonds Present Value Formulas 00:00:00
Bond Price Present Value Tables 00:00:00
Bond Price Excel Formula 00:00:00
Preferred Stock Valuation 00:00:00
Common Stock Valuation 00:00:00
Section 2 - Practice Problems - Valuation Bonds, Common Stock And Preferred Stock
Bond Value Different Yield Rates Problem 1 00:00:00
Bond Value Different Yield Rates Problem 2 00:00:00
Principal As A % Of Bond Price 00:00:00
Bond Value Different Maturity Dates 00:00:00
Bond Sale Percentage Profit (ROI) 00:00:00
Bond Sale Percentage Profit (ROI) Long Term Sale 00:00:00
Calculate Bond Rate And Change In Rate 00:00:00
Calculate Bond Rate And Change In Rate Problem 2 00:00:00
Find Bond Market Rate Or Yield 00:00:00
Find Bond Market Rate Or Yield Semiannual 00:00:00
Bond Value Semiannual Payments 00:00:00
Bond Value Semiannual Rate Change 00:00:00
Section 3 - Excel Problems - Valuation Bonds, Common Stock And Preferred Stock
Downloadable Practice Files 00:00:00
Bond Value Different Yield Rates Problem 1 00:00:00
Bond Value Different Yield Rates Problem 2 00:00:00
Principal As A % Of Bond Price 00:00:00
Bond Value Different Maturity Dates 00:00:00
Bond Sale Percentage Profit (ROI) 00:00:00
Bond Sale Percentage Profit (ROI) Long Term Sale 00:00:00
Calculate Bond Rate And Change In Rate 00:00:00
Find Bond Market Rate Or Yield 00:00:00
Calculate Bond Rate And Change In Rate Problem 2 00:00:00
Find Bond Market Rate Or Yield Semiannual 00:00:00
Bond Value Semiannual Payments 00:00:00
Bond Value Semiannual Rate Change 00:00:00
Preferred Stock Value 00:00:00
Preferred Stock Yield Or Rate Of Return 00:00:00
Common Stock Price No Growth Assumed 00:00:00
Common Stock Value Calculate Stable Growth 00:00:00
Estimated Earnings Per Share And Dividends 00:00:00
Common Stock Rate Of Return Constant Growth Rate 00:00:00
Common Stock Value Multiple Methods 00:00:00

About This Course

Who this course is for:

  • Business students
  • Business professionals

What you’ll learn: 

  • Explain valuation methods for financial assets
  • Calculate the valuation of bonds
  • Calculate the valuation of preferred stock
  • Calculate the valuation of common stock

Requirements: 

  • A general understanding of corporate finance concepts

This course will cover the valuation of financial assets including bonds, common stock, and preferred stock.

We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.

The general concept used to value financial assets is to take the present value of future cash flows from the financial asset. Therefore, we will need to use present value concepts and calculations.

The cash flow related to bonds will generally consist of a series of interest payments and a principal payment at maturity of the bond. We can use annuity calculations to determine the present value of the interest payments and present value of one calculation to determine the present value of principal at maturity.

Preferred stock has characteristics similar to bonds in that the payments are often standardized. However, we do not have a maturity date as we do with bonds.

Common stock can be more complex as we consider the future cash flow of dividends in an attempt to value the securities. The common stock dividends are more likely to change over time and we do not have a maturity date as we do with bonds.

Our Promise to You

By the end of this course, you will have learned how to calculate valuations of financial assets. 

10 Day Money Back Guarantee. If you are unsatisfied for any reason, simply contact us and we’ll give you a full refund. No questions asked.

Get started today and learn more about valuation.

Course Curriculum

Section 1 - Introduction
Financial Asset Valuation 00:00:00
Bond Issued At Par 00:00:00
Bonds Market Rate Vs Contract Rate 00:00:00
Issue Bond At A Discount%2C Calculate%2C And Record Interest Payment 00:00:00
Bond Issued At Premium 00:00:00
Bonds Present Value Formulas 00:00:00
Bond Price Present Value Tables 00:00:00
Bond Price Excel Formula 00:00:00
Preferred Stock Valuation 00:00:00
Common Stock Valuation 00:00:00
Section 2 - Practice Problems - Valuation Bonds, Common Stock And Preferred Stock
Bond Value Different Yield Rates Problem 1 00:00:00
Bond Value Different Yield Rates Problem 2 00:00:00
Principal As A % Of Bond Price 00:00:00
Bond Value Different Maturity Dates 00:00:00
Bond Sale Percentage Profit (ROI) 00:00:00
Bond Sale Percentage Profit (ROI) Long Term Sale 00:00:00
Calculate Bond Rate And Change In Rate 00:00:00
Calculate Bond Rate And Change In Rate Problem 2 00:00:00
Find Bond Market Rate Or Yield 00:00:00
Find Bond Market Rate Or Yield Semiannual 00:00:00
Bond Value Semiannual Payments 00:00:00
Bond Value Semiannual Rate Change 00:00:00
Section 3 - Excel Problems - Valuation Bonds, Common Stock And Preferred Stock
Downloadable Practice Files 00:00:00
Bond Value Different Yield Rates Problem 1 00:00:00
Bond Value Different Yield Rates Problem 2 00:00:00
Principal As A % Of Bond Price 00:00:00
Bond Value Different Maturity Dates 00:00:00
Bond Sale Percentage Profit (ROI) 00:00:00
Bond Sale Percentage Profit (ROI) Long Term Sale 00:00:00
Calculate Bond Rate And Change In Rate 00:00:00
Find Bond Market Rate Or Yield 00:00:00
Calculate Bond Rate And Change In Rate Problem 2 00:00:00
Find Bond Market Rate Or Yield Semiannual 00:00:00
Bond Value Semiannual Payments 00:00:00
Bond Value Semiannual Rate Change 00:00:00
Preferred Stock Value 00:00:00
Preferred Stock Yield Or Rate Of Return 00:00:00
Common Stock Price No Growth Assumed 00:00:00
Common Stock Value Calculate Stable Growth 00:00:00
Estimated Earnings Per Share And Dividends 00:00:00
Common Stock Rate Of Return Constant Growth Rate 00:00:00
Common Stock Value Multiple Methods 00:00:00

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