KCQ Preface and Chapter 1
The regulatory transparency of firm’s financial statements, I believe is super helpful for investors to understand more about a firm. I was surprised to know that this was not always publicly available. I wonder how financials statement would have been written before this, and how this affected investors decisions.
The comments on ‘business reality’ and utilising the information within financials statements ALONG SIDE other gathered information to value a firm is such an important and overlooked concept.
I really value your comment regarding having the opportunity to disagree with the information within the study guide and unit because in previous units, this broad subject has been presented to me as sort of a black and white case and doesn’t encourage alternatives.
I really interested in this unit because as you as it will tie my knowledge together. I also am very looking forward to having a working excel spreadsheet that values firms that I will definitely use in the future. I believe a very base level of information from this unit should be taught in high school.
I was taught in economics that the share price of a company represents its true value and the market will adjust shares to reflect such. I now understand that there is the opportunity to see where the market has not represented a stocks true value using analysis of many factors of a firm, not only the financials statements. It is very reassuring to be taught fundamental analysis in this unit and to know that the market doesn’t always value stocks perfectly. I have worked with DCF models before in previous units and I very much enjoy them. To me they make a lot of sense and are so much fun to construct and play around with in excel.