This course is a study of the process of business analysis and valuation through the valuation of Financial Statements.

Topics include the analysis of financial statements, efficient markets, business analysis, accounting analysis, common ratios, discounted rates in valuation, the dividend discount and flows to equity models, free cash flow model and analysis.

On successful completion of this course, participants should be able to:

1. Describe and compare the incentive facing producers and users of financial statements.
2. Demonstrate the role of financial statements numbers in assessing financial performance.
3. Calculate the cost of capital and compare it to financial performance.
4. Analyze and link free cash flow and residual income valuation models.
5. Prepare, appraise, and combine assumptions to develop a model for forecasting free cash flows.
6. Calculate common ratios.
7. Compute weighted-average cost of capital.
8. Value preferred and common stock.
9. Calculate dividends.
10. Use the economic balance sheet to analyze cash flow.
11. Distinguish between the dividend discount and the flows to equity models.
12. Assess the difference between GAAP cash flow and free cash flow.