Faculty
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Paul Simko, Frank M. Sands Sr. Associate Professor of Business Administration |
Course Description
This course is designed to provide a foundation for developing an understanding of the interpretation, screening, forecasting, and valuation tools that help one analyze information in corporate financial reports. The course includes but is not limited to topics related to understanding assessments of earnings quality, predicting financial distress, the use of ratio analysis, and the use of earnings-based valuation models as complements to more conventional discounted cash flow models.
The course is expected to help solidify and integrate core concepts from other finance and accounting courses, particularly the FY core ACC course, the FY ACC elective, and the corporate valuation modules in the FMP courses. Prerequisites are not required, but a solid understanding of accounting financial statements is expected. The FY core ACC course meets this need.
The course should benefit students planning careers in security analysis, investment banking, financial management or corporate finance. The course should also be beneficial to those interested in developing their own framework for using accounting data in their own investment decisions.
Course Objectives
- Strengthening students understanding of the accounting framework.
- Application of detailed ratio analysis for a variety of purposes, including using accounting data to provide a historical perspective on firm activities, assessing current profitability, and predicting financial distress.
- Development of detailed and complete financial statement forecasting techniques
- Understanding the application and links across common valuation techniques, including discounted cash flow, multiples, and earnings based valuation methods.
- Identification and interpretation of unique accounting factors that may affect the evaluation of company, including adjustments for off-balance sheet assets, understated liabilities, evaluating earnings accretion, and identifying potential earnings management.