After a diagnostic quiz on the six financial functions of one and a brief review, General Appraiser Income Approach/Part 2 opens with a thorough treatment of discounted cash flow (DCF) analysis. Topics include identifying components of a DCF, projecting cash flows, analyzing leases, solving for value in a variety of common situations, and supporting the discount rate. The effects of debt financing including cash equivalence and equity analysis are covered in detail. Income patterns and property models including residual and other applications are followed by selecting and supporting the discount rate. Also presented are the strengths and weaknesses of direct and yield capitalization. The final section reviews and summarizes the mathematical concepts involved with income capitalization and prepares the participant for not only the course exam but also the certification exam.
My year spent studying my Masters degree in International Shipping and Finance at the ICMA Centre was both one of the most challenging and rewarding periods of my life. Whilst being a very demanding course, it also presented great opportunities for interactions with industry experts and leading academics through various seminars, workshops and field trips – which I enjoyed very much. Perhaps my favourite aspect of the course was the truly international environment and feel of it; working and socializing with other students from a variety of different countries and backgrounds along with the term spent studying abroad in Athens really did typify global nature of Shipping. It was very much an all-encompassing course where I learned so much about both shipping and finance that I feel like I was pushed to enrich my knowledge far beyond that which I thought I was capable of and I am very appreciative of this and hope it provides me a very strong foundation to excel in my career.
Given the choice between the two funds, which would you include in your portfolio? Over this period the Vanguard fund returned a paltry % annually and the Vulcan fund a blistering %. If you could only own one fund in your portfolio, the Vulcan fund is probably the better choice as it benefits from exposure to market risk and therefore has a much higher expected return. However, if you are looking for the fund that enhances the risk-adjusted return of portfolio, there isn’t enough information to say at this point; it is meaningless to compare a fund with market exposure with a market neutral fund on a total return basis.