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Week 4: March 26-April 2

Homework:
1. Read Chapter 8 "Stock Valuation".
2. Listen to recorded lesson "chapter 8".
3. Finish homework for chapter 7&8 3-8 (submit to TA before April 11 with bond
valuation questions in the same problem set).
4. Discussion question for chapter 8 (Group work). Each group submit one work
before April 11.
Chapter 8 is about stock features and stock valuation. After studying this chapter, you
should have a solid understanding of stock valuation. Please try to answer the
following question. For a long time, Buffet refused to invest in the shares of many
technology companies, including Apple, because he believes that valuation is
particularly important, and valuation of technology companies is obviously very
complicated. In this chapter, we learned some valuation models. Do you think they
are suitable for valuation of young growth companies? why? What important factors
would you consider when valuing these companies?

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