BOOK 4 — CORPORATE FINANCE, PORTFOLIO MANAGEMENT, AND EQUITY INVESTMENTS Readings and Learning Outcome Statements .. Study Session 11 ~ Corporate Finance... Self-Test — Corporate Finance... Study Session 12 ~ Portfolio Management... Self-Test ~ Portfolio Management Study Session 13 — Market Organization, Market Indices, and Market Efficiency ... 206 Study Session 14 ~ Equity Analysis and Valuation svn Self-Test ~ Equity Investments... Formulas... Index...Page 2 SCHWESERNOTES™ 2012 CFA LEVEL I BOOK 4: CORPORATE FINANCE, PORTFOLIO MANAGEMENT, AND EQUITY INVESTMENTS ©2011 Kaplan, Inc. All rights reserved, Published in 2011 by Kaplan, Inc, Printed in the United States of America. ISBN: 978-1-4277-3615-4 ! 1-4277-3615-4 PPN: 3200-1727 If this book does not have the holograr with the Kaplan Schweser logo on the back cover, was dliseribuced without permission of Kaplan Schweser, a Division of Kaplan, Inc. and isin ect violation of global copyright laws. Your asiscance in pursuing potential violaors of this law is greatly appreciated. Required CFA Insute® disclaimer. “CFA® and Charered Financal Anaya? are wademarks owned by CEA Insure. CFA Instat (formerly che Assocation for Investment Management and Resetch) does nav endorse, promote review, or wartané the accuracy of the products or services offered by Kaplan Schwesen” (Certain materials contained within this cexe are the copyrighted property of CFA Institue. The flloving isthe copyright disclosure for chese materials: "Copyright, 2012, CFA Insitute, Reproduced and ‘epublished fom 2012 Learning Outcome Statement, Level Il, and If questions fom CFA® rogcam Macerials, CFA Inscicure Standards of Professional Conduct, and CFA Institue’s Global lavestment Peformance Standards with petmisson fom CFA Insite All RightsReserved.” ‘These materials may not be copied without written permission from the author. The unauthorized duplication of chese notes is a violation of global copyright laws and the CFA Institute Code of Ethics. Your assistance in pursuing pocencial violators of thi law i greatly appreciated. Disclaimer: The SchweserNotes should be used in conjunction with the original readings as set forth by. (CEA Institute in cheit 2012 CFA Level I Study Guide. The informacion contained in these Notes covers topics coneained in the readings referenced by CFA Insitute and is believed ro be accurate. However, their accuracy cannot be guaranteed nor is any warranty conveyed as to your ultimate exam succes. The authors of the referenced readings have not endorsed or sponsored these Nott ©2011 Kaplan, Ine.READINGS AND LEARNING OUTCOME STATEMENTS READINGS The following material is a review of the Corporate Finance, Portfolio Management, and Equity Investments principles designed to address the learning outcome statements set forth by CFA Institute. STUDY SESSION 11 Reading Assignments Corporate Finance, CFA Program Curriculum, Volume 4 (CFA Institute, 2012) 36. Capital Budgeting page I 37. Cost of Capital page 35, 38, Measures of Leverage page 60 39. Dividends and Share Repurchases: Basics page 75 40. Working Capital Management page 89 41, Financial Statement Analysis page 104 42. The Corporate Governance of Listed Companies: A Manual for Investors page 113 STUDY SESSION 12 Reading Assignments Portfolio Management, CFA Program Curriculum, Volume 4 (CFA Institute, 2012) 43. Portfolio Management: An Overview page 134 44, Portfolio Risk and Return: Part I page 145 45. Portfolio Risk and Return: Part II page 168 46 Basics of Porefolio Planning and Construction page 192 STUDY SESSION 13 Reading Assignments Marke: Organization, Market Indices, and Market Efficiency, CFA Program Curriculum, Volume 5 (CFA Institute, 201 47. Market Organization and Structure page 206 48, Security Market Indices page 234 49. Market Efficiency page 253 STUDY SESSION 14 Reading Assignments Equity Analysis and Valuation, CEA Program Curriculum, Volume 5 (CEA Institute, 2012) 50. Overview of Equity Secusitics page 266 51. Introduction to Industry and Company Analysis page 279 52. Equity Valuation: Concepts and Basic Tools page 299 ©2011 Kaplan, Ine. Page 3