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1 ) calculate the YTM of a bond, its current yield, capital gains yield and will need to determine if it will be called 2

1) calculate the YTM of a bond, its current yield, capital gains yield and will need
to determine if it will be called
2) calculate the expected return of a stock given a scenario analysis, calculate the
required rate of return per CAPM, decide on whether or not to invest in it
understand how RFR and MRP impact SML
3) calculate the valuation of a stock using a dividend discount model with constant
growth occurring in year 1, its dividend yield and capital gains yield (assuming
equilibrium) and price one year from today know what impacts valuation (from 3
variables)
4) calculate the WACC for a company (using only the CAPM and cost of debt) simple
approach, understand how interest rates, risk and flotation costs impact WACC

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