Preferred-stock valuation

Preferred-stock valuation

Bachelor of Business Studies (BBS) — Second Year

Subject: Fundamentals of Financial Management (MGT 215)

Unit 5: Financial Assets Valuation

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of preferred-stock valuation.
• Apply the relevant financial model, calculation or analytical approach and explain its assumptions and decision implications.

Curriculum Scope

• Valuation of preferred stock

Detailed Microsyllabus

1. Preferred-stock valuation

   1. Dividend entitlement and payment assumptions.
   2. Perpetual preferred-dividend model where applicable.
   3. Required return matched to the security.

2. Calculation and interpretation

   1. Calculate value from supplied dividends and required return.
   2. Consider stated maturity or redemption terms.
   3. Explain model assumptions and sensitivity.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 41-43.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.