Email account of professor:
Course valuation:
-Exam accounts for 50%
-Project accounts for 50%
The final mark is converted into the six-point scale, as according to BG standards.
Course objectives:
Literature:
-Principles of Corporate Finance, 12th Global Edition, MCGraw-Hill Higher Education
-Becker professional education. Financial Management F9, ACCA study system
-Financial Management (FM), (ACCA APPROVED) – Study Text, Practice & Revision
Kit
-Ненков, Д. ,,Определяне на стойността на компаниите“, ИК на УНСС, София,
2015 г.
-Ненков, Д., Христозов, Я,,Корпоративни фирнанси-учебно помагало“ ИК на
УНСС
-Ненков, Д., ,, Фианнсов Мениджмънт- кратък курс“
Additional Sources
-Damoudaran, Aswath, @Investment Valuation – Tools and techniques for
determining the value of any asset@, John Wiley & Sons
-Koller, t., Goedhart, M., Wessels, D., @Valuation – Measuring and Managing the
value…”
Determining the Value of a Going-Concern Company:
Objectives of the Assignment:
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To apply modern methods and models for determining:
 The fair value of the company
 The value of a stock
Required features of the valued enterprise:
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The enterprise must be from the real sector
The enterprise must operate predominantly in Bulgaria
The enterprise may be a joint stock company, a limited liability company, etc.
The enterprise may be public (on stock exchange) or private (not on stock
exchange)
Banks, insurance companies, and mutual funds are out of consideration
Specific tasks – 1 and 2
1) Survey and analysis of the possible approaches and methods for determing
the value of “…”. All there main approaches shall be explored for potential
methods and models to be applied. Selection of the appropriate combination
of methods from the three approaches.
2) Determine the fair value of the company using the net value of assets (NVA)
method.
3) Determine the fair value of the company (the firm value, the value of equity
and the value per share) applying relative evaluation methods (multiples
approach).
4) Determine the fair value of the company a pplying a combination of two
discounted cash flows models
-Combination A
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Discounted Dividends Model (DDM)
DCF Enterprise Valuation Model
-Combination B
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DCF Equity Valuation Model
Economic Profit (Economic Value Added) Model.
5) Determine and justify the weight of each of the applied methods/models for
the final assessment.
6) Comment on the difference between the final value per share of common
stock from your assessment and the current market price per share of
common stock
Recommendations regarding the selection of a company
-To select an enterprise, for which the financial and other data is sufficient for making
the valuation
-In this regard, it is appropriate to choose a public joint-stock company, which is
traded on the Bulgarian Stock Exchange-Sofia
-The enterprise may also be private (non public), but the students need to have the
needed private information, to use for the valuation
-The enterprise should be stable, with good financial indicators and good
perspectives to continue operations
-For the assignment, you need the income statement (profit and loss statement) and
the balance sheet (statement of financial position) of the company
Final Deliverables:
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Excel-file containing the calculations/analaysis
A Powerpoint presentation summarizing the findings
Final Exam Components:
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One case study+short answer questions
The case study covers a distinct topic from the one on the assignment