Status Updates From Corporate Finance, Canadian...

I basically now have a lay of the land, where evaluation is concerned. Time for the real work to start. Knowledge is only half the battle.

At 19.2, "Business Plan". Running figures in a plan is very important to investors and creditors.

Skimmed through Chapter 18, which is ultimately using 3 different methods to value a firm and the effects of taking into account debts, taxes and the dynamics of a firm's capital structure.

Will have to review a number of concepts in this chapter (Chapter 16)

Moving into Chapter 16. Learning about bankruptcy.

That was a surprising run today. Will leave the remainder of Chapter 15 (15.8) for tomorrow.

Oops! Curiosity led me into Part 5 of this book. I think I will proceed and return to review the most difficult chapters in Part 4

So far into Chapter 13, I think the ideas presented are mostly to "beat the market". This may be the anti-thesis to Benjamin Graham's philosophy on stock trading. This is most certainly something that Warren Buffett may not engage in: calculating betas and alphas and using all manner of mathematical approaches to beat the market.

It's still good to learn these concepts. Just for fun.

Now at Chapter 13. Will have to review the vitally important material on estimating cost of capital from Chapters 11 and 12.

May have to review all previous chapters to get intuition about estimating betas and cost of capital.

You can use Machine Learning tools to plot the line of best fit from a history of stock prices and market indices

Skipped Sections 11.6, 11.7 and 11.8 to go through high-level concepts. Will revert back to 11.3, 11.4, 11.5, 11.6, 11.7 and 11.8

Chapter 11 is a detour from calculating the intrinsic value of a company (and, hence a stock). It is about creating the most efficient portfolio possible. This is also very useful and very interesting.

I will need to review some of the formulas in this chapter but I get the main concept.

Covariance is an elusive concept that I have yet to grasp.