Complex Financial Instruments (CFI) - Foundational
Issued by
Grant Thornton US
Earners of this badge become familiar with the different types of financial instruments valued by the complex financial instruments (CFI) group, as well as the methodologies and tools used in the valuation of the financial instruments. Upon completion of this learning, the earners of the CFI badge will be able to meaningfully contribute on the following engagements: allocation of the privately held equity securities using the Option-Pricing Method or the Hybrid Method, valuation of debt using
- Type Learning
- Level Foundational
Skills
- Allocation of equity among various equity securities using Option-Pricing Method
- Estimation of expected volatility
- Estimation of incremental borrowing rates
- Estimation of market yield
- Valuation of debt using Yield Method
- Valuation of financial instruments
Earning Criteria
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Apply: Ability to recall and recognize concepts, tools and techniques and demonstrate understanding of concepts in real-world situations and through internal/external conversations.
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Assess: Successful completion of learning activities and 70% or better in online courseware assessments and/or quizzes.
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Disclaimer: Grant Thornton makes no representations or warranties related to the Grant Thornton badging program, including, but not limited to, representations or warranties of quality, performance, or expertise. The issuance of a Grant Thornton badge to a particular individual should not be relied upon for any reason. Grant Thornton’s badging program is based upon internal, subjective criteria determined at the time of issuance.
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the Yield Method, development of the market yield and incremental borrowing rate(s), estimating synthetic credit rating of a company using Ordered Logit Model, and estimating the expected volatility. Earners of this badge will also become familiar with the methodologies used in the valuation of contingent considerations and earnouts, redeemable debt, convertible debt, and debt issued by private companies which converts into the next round of equity financings.