Financial Statement Analysis and Equity Valuation

DESCRIPTION:
Review and analysis of financial statements. Tools and techniques for financial valuation using cash flow information and present value analysis. Topics of ratio analysis, liquidity, capital structure, trend analysis, profitability, industry standards, changes in working capital, changes in financial position, sources and uses of funds, business valuation techniques, and analysis of earnings quality.

RATIONALE: 
Through this course, students will gain knowledge and understanding of the tools employed in fundamental analysis and equity valuation. This course is designed primarily for students who expect to be intensive users of financial statements as part of their professional responsibilities.

LEARNING OUTCOMES: 
As a result of taking this course, the student should be able to:
1. Analyse and manipulate financial data so as to assess corporate strategy
2. Perform financial projections and apply various methods for valuating securities
3. Critically evaluate the usefulness of financial and non-financial information in the valuation of securities and corporate strategy
4. Summarize the effects that different accounting measurements have on equity valuation

METHOD OF TEACHING AND LEARNING:
In congruence with the teaching and learning strategy of the college, the following set of tools are used:
− Class lectures, interactive learning (class discussions and group work) and practical problems (case studies) worked in class.
− Homework assignments: Exercises and primary source documents are assigned as homework, and the solution of which are reviewed in class.
− Guest lectures
− Office hours: students are encouraged to make full use of the office hours of their instructor.
− Use of blackboard.