1. Buying/Selling, Margin Loans and Short Selling

a. I buy 100 shares of IBM at $100 and sold it for $120 20/200=20%

b. I buy 10 shares of IBM at $100 n 50% margin loan at 10.0% and sold for $120 (120-50-5-50) = 15 = 15/50 = 30%

c. I buy 10 shares of IBM at $100 in 50% margin loan at 10%, received a dividend of $4 and sold at 120 . $120-50-5+4-50 = 19 .. 19/50 = 38%

d. I borrowed 100 shares of XYX at current stock price of $100 and bough at $80 100-80 / 100 = 20% short investment

2. Valuation methods

a. Using the Stock Price EV = EQ + D C , EQ = SO x SP

b. Intrinsic Value (P + D) / CAPM

c. DDM Div (1+g) / (CAPM g)

d. EBITDA Multiples EV = EBITDA Multiple x EBITDA

e. DCF (Basic Concepts of PV, FV of Cash Flows, Discount Rate) Equity CFs, TV and Debt (exit year) and discount back the future cash flows using Equity Return to get the Equity Value / Shares outstanding = Stock Price