FE-1 Equity case studies
FE-1 Equity · Put your knowledge to work in context.
FE-1 Equity is a specialist certification for people who analyse, value, and write about publicly traded companies. It suits equity research associates, investment banking and corporate finance analysts, asset management staff, and finance students moving from general accounting knowledge into company-level valuation work. The FE-1 Equity case studies are 5 cases and about 4,397 words.
1The 3-for-7 Rights Issue: TERP, Control, and the Retail Holder's Choice
Meridian Logistics Ltd trades at HK 4.80. Before the open it announces a 3-for-7 rights issue at HK 3.20 per new share, raising roughly HK 1.9bn to repay a syndicated facility maturing in 14 months; net debt/EBITDA is 4.1x before the raise.
894 words, about 4 min2Cash Conversion That Isn't: Nordwind Software's Quality of Earnings
Nordwind Software reports FY revenue of 480m (prior year 400m), net income of 36m and operating cash flow of 92m. Capex was 18m, including 12m of capitalised development.
883 words, about 4 min3Terminal Value Discipline in the Arden Water Group DCF
A sell-side note on Arden Water Group carries a Buy rating and a 16.40 target price; the shares trade at 18.05. The model uses a WACC of 8.5%, terminal growth of 2.5%, and a five-year explicit forecast whose free cash flow to the firm has a present value of 620m.
844 words, about 4 min4Lease Accounting and a Cross-Atlantic Multiples Comparison
You are valuing Brenner Foods, a Frankfurt-listed grocer reporting under IFRS, against a US peer set reporting under US GAAP. Brenner's IFRS 16 EBITDA is €1,150m; lease depreciation is €300m and lease interest €100m.
873 words, about 4 min5A Concentrated Position, a Redemption Queue and a Beta Target
A long-only equity fund runs 850m against an equity benchmark. Its largest holding is 9.5% of the fund versus 3.0% in the benchmark; the stock has a 38% volatility, the benchmark 16%, and the correlation between them is 0.55.
903 words, about 5 min