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TOPICS COVERED

Introduction to the Securities Industry

1

1

The investment world, The primary market, Types of underwriting, The securities industry, Investment banking

Introduction to Equity Securities

2

2

Common & Preferred stock, Warrants, Convertible bonds, Characteristics of common stock

Introduction to Debt Securities

2

2

Corporate bonds, US government bonds and agency securities, Municipal bonds, Valuation: credit ratings and yield, Zero coupon bonds

Trading Securities in the Secondary Markets

2

2

Exchange markets, Types of orders, Margin, Over-the-counter markets, Analysis, Short sales

Processing Securities Transactions

1

1

Order processing, Operations departments, Settlement and delivery

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Common Stock

2

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Why people own stock, Business risk associated with common stock, Types & characteristics of common stock, Reading stock listings

Preferred Stock

1

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Preferred stock vs. bonds, Identifying preferred stock, Calculating return on preferred stock, Risk associated with preferred stock, Types of preferred stock

Equity-Linked Issues

2

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Subscription rights, Warrants, Convertible bonds, ADR's and EDR's

Indexes

2

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Stock indexes, Stock index mutual funds, Index options

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TOPICS COVERED

Introduction to Brokerage Operations

1

1

The importance of Brokerage Operations, Sales Department, Account Types, New Accounts Department

Back Office: The Order Room

1

1

Order Processing, Order Routing, The Order Form, Basic Order Form, Basic Order Types, Special Orders

Back Office: Purchase and Sales

1

1

Purchase and Sales Department, Recordation, Figuration, Calculating Bond Trades, Comparison, Trade-for-Trade versus Systematized

Back Office: The Margin

1

1

Buying on Margin, Margin Accounts, How Margin Accounts Work, Calculating Equity and Debit Balance, Reg T Excess and Buying Power, Margin Regulation, Close Out

Back Office: The Cashier's Department

1

1

Good Delivery, The Depository, Stock Transfer, Reorganizations and Corporate Actions, Settlement

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TOPICS COVERED

Bonds and Their Features

1

1

Defining a bond, Bond Terminology, Interest Rates and Bond Price, Pricing bonds, Bond Yields, Bond Price Factors, Physical characteristics of bonds

The Fixed Income Marketplace

1

1

Treasury Bonds, Treasury Notes, STRIPS, TIPS, Municipal Bonds, Corporate Bonds, Money Market  Securities, Treasury Bills, Bond Equivalent Yields, T-Bill Auctions, T-Bill Quotes

The Fixed Income Regulatory Environment

1

1

Duration and convexity, The Federal Reserve System, Implementing FED Policies, Call features Put Options, Bond Risks

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TOPICS COVERED

Basics of Forwards and Futures

2

2

Definitions of forwards and futures, Spot vs. forward delivery, Basics of pricing, Characteristics of Futures, Margin, Cash settlement vs. physical delivery

Introduction to Options

2

2

Leveraging Investment, Strategies for Investing with Options, Speculating with Options, Writing Puts, Writing Calls, Covered Versus Uncovered Writing, Writing Covered Puts, Option Pricing Terminology, Intrinsic Value and the Time Value of Options, Factors Affecting Option Pricing, The Underlying and the Strike Price, Volatility, Risk Free Interest Rate, The Greeks, Other Option Types

Trading Derivatives

1

1

Exchanges, Brokers and Dealers, Auction Exchanges, International Option Exchanges, International Option Exchanges, OTC Exchange, Internet Exchanges, Margin on Futures

Introduction to Swaps

2

2

Interest Rate Swaps, Currency Swaps, Interest Rate Swap Pricing, Swap Facilitators

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TOPICS COVERED

Investor Profiling

1

1

Determining the client's time horizon, Determining the client's risk tolerance, Determining the client's tax rates and implications, Constructing an appropriate investment approach

Portfolio Management and Duration

1

1

Defining duration, Immunizing a portfolio, Duration of stocks, Mixing Duration, Duration and Risk

Introduction to Portfolio Risk

1

1

Diversification and the different investment vehicles, Assets - not investments, Investments as assets, Picking asset classes

Asset Allocation and Taxation

1

1

Choosing an asset mix, Mutual funds vs. direct investment, Market timing vs. dollar averaging, Which investments, which account, Planning for the next generation

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DURATION IN HOURS

TOPICS COVERED

Introduction to Financial Statements

1

1

Understanding business as a financial system where management makes decisions in three key areas: investment, financing and operations; Description of profit & loss, balance sheet, and cash flow statements, Using profitability and risk ratios to compare companies across different sizes and industries

Risk Analysis Using Ratios

2

2

Risk Ratios analysis, Two different perspectives on analyzing companies using financial statements, Selecting the ratios to use in your analysis  

The Impact of Accounting Principles

2

2

Adjusting for difference in reporting to put companies on a comparable basis, Accounting principles governing income recognition and valuation of assets, Accounting principles governing liability recognition, Valuation of corporate acquisitions

Valuation Basics

2

2

Tools and techniques for valuing companies for acquisition, legal or investing purposed, Developing pro for a financial statements, Cash-flow based approach to valuation, Guideline companies approach to valuation

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TOPICS COVERED

Introduction to the Hedge Fund Industry

2

2

Characteristics that define hedge funds, Popular misconceptions, History, Size and Growth, Legal Structures, Industry players

How a Hedge Fund Works

2

2

Sources of Return. Statistical measures, Management and incentive fees, Leverage, Portfolio construction. Risk management techniques

Hedge Fund Strategies

2

2

Long/short equity, Global macro, Event-driven, Emerging Markets, Equity market/neutral, Convertible bond arbitrage, Dedicated short bias, Managed futures, Fixed income arbitrage

Issues for Hedge Fund Investors

2

2

Due diligence, Constructing a hedge fund portfolio, Risk management strategies, Transparency issues, Liquidity issues, Client suitability, sources of information on hedge funds, Fund-of-funds

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DURATION IN HOURS

TOPICS COVERED

Introduction to Trusts

1

1

Definition of a trust, Definition of a fiduciary relationship, Interested parties: Beneficiaries, Remaindermen and Trustees, The trust document and trust term; The trust document and trust term

Trusts and Taxation

1

1

Capital Gains Tax, Transfer Taxes, Estate and Gift Taxes, Generation Skipping Transfer Taxes

Characteristics of Trusts

1

1

Determining Trust Characteristics: Including Testamentary and intervivos, Revocable/irrevocable Trusts, Principals and Income, Trust Beneficiaries and Vested and Contingent Interest in a Trust; Trust Distribution Characteristics: Including Per Stripes Distributions and Per Capita Distribution; Trust Terminating Events; Trust Taxability Characteristics: Including Tax-paying Entities and Simple versus Complex Trusts; Trust Disposition Characteristics: Including Disposition of Trust Principal and Disposition of Trust Income; Trust Situs

Types of Trusts

1

1

Marital Trusts, Credit Shelter/Bypass Trusts, Charitable Trusts, Generation Skipping Transfer Trusts (GSTs), Grantor Retained Annuity Trusts (GRATs), Insurance Trusts, Qualified Personal Residence Trusts (QPRTs), Dynasty Trusts, Revocable Trusts, Coordination of Trusts and Wills

Duties of a Trustee

1

1

Duties and responsibilities of the trustee, Trustee investments, The Prudent Man Rule versus the Prudent Investor Rule, Trust accountings, Formal and informal settlements, Events precipitating accountings

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DURATION IN HOURS

TOPICS COVERED

Overview and History of Short Term Trading

2

2

Evolution of short-term trading, Who is today's short-term trader?, SOES and scalping, Contribution of new technologies, Getting started as a short-term trader

Market Indicators and Information

2

2

Market indicators and analysis, Market indicators to watch, Economic news releases and market information

Technical Analysis for Day trading

2

2

Charting, time frames and prices; Trendlines; Volumes; Pattern analysis; Moving averages

Research, Planning, and Executing Day Trades

2

2

Properly planning and preparing for a trading day, Correlation and its affect on trading, Risk and money management, Executing the trade, Setting time parameters and re-evaluating

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TOPICS COVERED

The Nature of Money

1

1

Functions of Money, Properties of Money, Monetary vs. non-monetary economies, The gold standard

Measuring Money

1

1

How to define money, US Federal Reserve definitions, Calculating aggregates

Creating Money

1

1

Deposits and lending, Multi-bank transactions, Federal Reserve transactions, Creation of money by the banking system

Creating the Federal Reserve System

1

1

History, Current structure, Roles of the Federal Reserve

Theory of Monetary Policy

1

1

The classical approach, The Keynesian approach, The monetarist approach, The new classical theory, The new-economy argument, European Union

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DURATION IN HOURS

TOPICS COVERED

The Institutional Investor

1

1

The portfolio management process, Types of institutional investors

The Individual Investor

1

1

Five way model, Risk and the individual Investor: an examination of portfolio goals, Individual vs. Institutional investors

Money Markets and Portfolio Management

1

1

Different types of money market funds, Advantages of different types of money market funds, Government treasury bills including bank discount basis and bond equivalent yields, selecting investment vehicles based on the needs of a hypothetical client

Managing Portfolios with Bonds

1

1

Characteristics of long-term debt instruments, Key terms related to the bond market, Assessing the utility of different debt instruments

Managing Portfolios with Equities

1

1

Compare and Contrast methods for valuing equities; Dividends, earnings and assets, Identifying attractive equities for investment

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DURATION IN HOURS

TOPICS COVERED

Introduction to Margin Requirements

1

1

Defining margin, Brief history of margin regulations, Types of account and marginable securities, Risks and benefits of using margin, The margin agreement

Margin Transactions

2

2

Basic margin account requirements, Computation of Regulation T and maintenance excess,  Special memorandum account, Liquidations, withdrawals and substitutions

Margin Calls

2

2

Maintenance calls on long positions, Maintenance calls of short positions, Buying power, Meeting Regulation T and maintenance calls, Functions of the margin department

Margin Requirements for Day-Trading and Bonds

1

1

Day-trading requirements and margin calculations, Margin requirements for bonds (convertibles, exempt securities, and non-convertibles), Restricted accounts

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DURATION IN HOURS

TOPICS COVERED

Understanding Mutual Funds

2

2

Industry overview and brief history, Net asset value, Fund families, Benefits and drawbacks of mutual funds

Various Mutual Fund Products

2

2

Equity and fixed income mutual funds, Hybrid securities, Multifunds, Closed-end funds, Alternatives to mutual funds

Selecting the Right Mutual Fund

2

2

Understanding fund objectives, Determining risk tolerance, Deciding asset allocation, Researching funds, Small-cap vs. large cap and value vs. growth

Operation of a Mutual Fund Company

2

2

Organization of mutual funds,  Open-end fund structure, Participants in a mutual fund, fund fee structures, Buying and redeeming shares

Trends in the Mutual Fund Industry

2

2

Boom industry, Shift to Defined-Contribution pension plans, Developments in fund types, Distribution channels, Global deregulation, Future of global mutual fund investing

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DURATION IN HOURS

TOPICS COVERED

Bond Valuation

1

1

Discounted cash flow, Valuing fixed income instruments, Theories behind the yield curve

Portfolio Volatility and Duration

1

1

Factors affecting bond volatility; Duration, modified duration and convexity

Advanced Equity Valuation Techniques

1

1

Dividend discount models, Free cash flow approach, Capital asset pricing model

Advanced Portfolio Management Theory

1

1

Modern portfolio theory, Asset pricing theory, Arbitrage pricing theory

Global Investing and Alternative Investments

1

1

Advantages of global investing, Emerging markets, Types of alternative investments, Assessing investor suitability for alternative investments

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DURATION IN HOURS

TOPICS COVERED

Margin for Options: An Introduction

1

1

Review of margin, definitions, terminology and requirements for equity securities; Regulation T and maintenance calls; Options background and terminology

Cash Account Option Transactions

1

1

Long option purchases and sales, Exercising long options, short options

Long Options in Margin Accounts

1

1

Making option purchases in margin accounts, Regulation T and maintenance requirements for long option purchases and sales, Off-setting purchases and sales, Buying Power

Covered and Uncovered Calls in Margin Accounts

1

1

Covered Calls, Uncovered Calls, Covering and expiration of uncovered calls

Covered and Uncovered Puts in Margin Accounts

1

1

Covered puts, Uncovered puts, Covering and expiration of uncovered puts

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DURATION IN HOURS

TOPICS COVERED

Introduction to Corporate Finance

1

1

Decisions of the Corporate finance manager, Maximizing the welfare of stockholders, Managing the flow of funds, Maintaining access to markets and managing risk, The implications of efficient markets

The Time Value of Money

1

1

Simple present value concepts, Present value formulas and examples, Simple future value concepts, Future value examples

More Time Value Applications

1

1

Prices and returns of bonds and equities

Capital Budgeting Overview

1

1

Merits of using net present value vs. internal rate of return, Special capital budget problems, Examples: capital rationing, projects of different lives, After-tax weighted average cost of capital as discount rate, Calculating cost of debt, equity and cash flows on investments

The Financing Decision

1

1

Modigliani and Miller propositions, Impact of bankruptcy and ownership structure on financing decisions, Impact of leverage on firm valuation

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DURATION IN HOURS

TOPICS COVERED

Overview of Mergers and Acquisitions

1

1

Business expansion decisions: build it or buy it?, Key advantages of acquisitions, Acquisition of public vs. private companies, The players in the world of acquisitions, The acquisition process, Basics of financing the deal

Risk Considerations for Mergers and Acquisitions

1

1

Risk vs. Return analysis, Due diligence and uncovering incorrectly valued and unrecorded assets and liabilities, Conducting business through subsidiaries, Contingent liabilities, Turnaround candidates, Operational vs. financial problems

Valuing the Acquisition Candidate

1

1

Determining the fair market value of a target company, Financial forecasting, Economic vs. accounting valuation, Valuation and overseas acquisitions

Financing the Acquisition

1

1

Techniques for evaluating financial alternatives, Establishing the target capital structure, Financing with cash, secured debt, unsecured debt and stock, Structuring bank financing, Mezzanine financing

Integrating the Acquisition

1

1

Dealing with people and systems, Divestment strategies, IPO's, Adding value in the new economy, Setting desired rate of return

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DURATION IN HOURS

TOPICS COVERED

Introduction to Financial Centres

1

1

Overview of the city and other major financial centres, Major developments and significant milestones affecting the city, Roles served by the world's financial centres, Nature and need for primary and secondary markets

Major Players in a Global Financial Centre

1

1

Central bank, Types of banks and their major functions, Savings and investments vehicles and intermediaries, Role of insurance companies and pension funds as financial institutions, Brokerage functions, Venture capital sources and how venture capitalists operate

Money Markets Around the World

1

1

Overview of the money markets and how banks facilitate international trade, Money market instruments, Eurocurrencies and Euromarkets, Overview of interest rates

Initial Public Offerings in the UK

1

1

History of the development of the stock markets; Importance, motives, advantages and disadvantages of listing on a recognized exchange, London Stock Exchange and the alternative investment market; Different methods for floating shares, including their advantages and disadvantages; Basics of pricing shares, Alternatives to going public

Public Companies in the UK

1

1

Different types of shares, Rights and bonus issues, Buying and selling shares in the secondary markets, Valuing shares using P/E ratios

Bond Markets Around the World

1

1

Government bonds; Corporate bonds and the importance of credit ratings; Convertible bonds, warrants, floating rate notes; Relationship between bond prices and interest rates; International and Eurobond markets

FX and the City

1

1

Foreign exchange markets and players; Floating vs. Fixed rate exchange regimes; Spot vs. Forward transactions; Effects of exchange rates on trade; Impact of demand and supple for currencies on exchange rates; Hedging, arbitrage and speculation; Euro; Emerging market currencies

Introduction to Derivatives and Risk Management

1

1

Evolution of derivatives as risk management instruments, Futures contracts, Options contracts, Swaps

Insurance and Reinsurance

1

1

Role of insurance as an integral part of the financial services market, General insurance, Long-Term insurance: life assurance and pensions, How insurance companies earn income from investing premiums, Role of reinsurance and coinsurance, Factors that affect insurance prices, Developments in insurance distribution

Regulation in the UK Financial Services Markets

1

1

Why regulation is critical to the financial markets, History and evolution of regulation in the city, European Union regulatory developments, Need for regulation at an international level

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TOPICS COVERED

Introduction to Financial Management

1

1

What is financial management?, Financial management goals, Introduction to key accounting concepts

Key Financial Statements

1

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Balance sheet; Income statement; Statement of cash flows; Notes to financial statements

GAAP and Audits

1

1

Generally accepted accounting principles; The audit, including the management letter and auditor's report

Recording Financial Information

1

1

Key concepts; Recording financial events in journals and ledgers; Using financial information to improve decision making, budget planning, proposals and communication of information

Budgeting for Nonfinancial Managers

1

1

Elements of a budget; Using a budget to set goals, evaluate results and improve decision-making effectiveness, communication and coordination; Preparing a budget; Break-even analysis; Reading, understanding, organizing, and using departmental budgets

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DURATION IN HOURS

TOPICS COVERED

Options Terminology

1

1

Call and put options, Exchange-traded vs. over-the-counter (OTC) options, Call option valuation at expiration, Payoff and value profiles, Option valuation before expiration

Fundamentals of Options Products

1

1

Stock (or equity) options, Index options, Futures options, Options on interest bearing securities, Currency options, Interest rate options: caps, floors and collars

Option Combination Strategies

1

1

Horizontal and vertical spreads: bull and bear spreads; Portfolio strategies: protective puts and writing covered calls; Volatility plays: straddles and strangles

Factors That Impact an Option's Value

1

1

Put-call parity, Expected value model, Single- and multi-period binomial lattice models, Factors that determine the value of options

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TOPICS COVERED

Introduction to Risk Management

1

1

Understanding risk management, How risks arise, Risk Categories

Identifying Risks

1

1

Understanding and implementing the risk, Types of Risk, Defining and utilizing natural hedging

Managing Foreign Exchange Risk Using Derivatives

1

1

Defining foreign exchange risk, Applying derivative risk management techniques

Managing Short-Dated Domestic Interest Rate Risk using Derivatives

1

1

Defining short-dated domestic interest rate risk, Applying derivative risk management techniques

Managing Long-Dated Domestic Interest Rate Risk using Derivatives

1

1

Defining long-dated domestic interest rate risk, Applying derivative risk management techniques

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DURATION IN HOURS

TOPICS COVERED

Introduction to Forwards and Futures

1

1

Definitions of forwards and futures, Spot vs. forward delivery, Basic of pricing, Characteristics of Forwards, Characteristics of Futures, Margin, Cash settlement vs. physical delivery

Forward Rate Agreements (FRAs)

1

1

Defining an forward rate agreement, Hedging with forward rate agreements, Speculating with forward rate agreements, How forward rate agreements are priced, How the forward curve is constructed

Short-Term Interest Rate Futures

1

1

Characteristics of short-term interest rate futures, Quoting conventions: forward rate agreements vs. short-term interest rate futures, How futures are listed, Applications of short-term interest rate futures, Role of Eurodollar futures in pricing other products

Note and Bond Futures

1

1

Contract specifications, Conversion factors and cheapest to deliver, Invoice amount and accrued interest, Pricing: Cash and Carry, Find the cheapest to deliver, Hedging with bond and note futures

Stock Index Futures

1

1

Underlying indices, Characters and specifications of stock index future contracts, Determining the fair futures price, Using stock index futures Adjusting hedge ratio for beta

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DURATION IN HOURS

TOPICS COVERED

Introduction to Asset Backed Securities

1

1

Defining an asset-backed security, Evolution of the ABS market, Players in the ABS market, Comparing the ABS market to other fixed income markets

Structure and Rating of Asset Backed Securities

1

1

Assets, Special purpose vehicles, Cash flows, Rating agencies and credit ratings, Credit enhancements

Major Sectors of the Asset Backed Securities Market

1

1

Mortgage-backed securities, credit card receivables, Auto loans, Equipment leases, Collateralized debt obligations

Pricing and Trading of Asset Backed Securities

1

1

Mechanics of pricing, Determining the spread, Relative pricing of ABS compared to other fixed income sectors, Relative pricing among ABS

The Future of Asset Backed Securities Market

1

1

Development of new assets as collateral, Future development of existing ABS products, Use of derivatives, New structuring techniques. Growing global investment base for ABS products

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DURATION IN HOURS

TOPICS COVERED

Introduction to Corporate Credit Analysis

1

1

What is corporate credit analysis and why do banks do it?, Categories and types of loans, The lending process, Sources of Information

Industry and Company Forecasting

1

1

Industry analysis and trends, Industry metrics, Corporate analysis, Sensitivity and scenario analysis

Financial Analysis

1

1

Profitability and performance ratios, Liquidity and solvency ratios, Coverage Ratios, Capital structure ratios, Corporate financing and credit ratios, limitations of financial credit  analysis

Non-Financial Analysis

1

1

Industry and economic factors, Industry structure: Porter's Model, Key Market forced: PEST, Corporate strategies and implementations, Corporate structure, SWOT analysis, Non-financial analysis

Credit Ratings and Credit Scoring

1

1

Role of credit rating agencies; Ratings definitions, process and methodology; Credit scoring models

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DURATION IN HOURS

TOPICS COVERED

Introduction to Business Valuation

1

1

Why determine a business valuation?, The role of the public markets in business valuation, Common valuation methodologies, Why discounted cash flow is the best approach, Introducing Kellogg's as our case study

The Foundations of Free Cash Flows

1

1

Cash flow vs. free cash flow, Determining free cash flow, Reconciling free cash flow with the consolidated statement of cash flow, Value Drivers, Projecting Kellogg's free cash flow for the project period based on the value drivers

The Weighted Average Cost of Capital (WACC)

1

1

Introducing the weighted average cost equation, Calculating the after-tax expected cost of debt, Using CAPM to calculate the expected cost of equity, Calculating the weighted average cost for Kellogg's before and after the Keebler acquisition

Terminal Value

1

1

Defining terminal value and its impact on the DCF valuation, Methods for determining terminal value, Determining the most appropriate terminal value for Kellogg's