||This course aims to develop students understanding of the relation between
accounting numbers and underlying economic activity, and to develop students ability
to use accounting numbers in several decision contexts including corporate performance
evaluation, financial reporting strategy, and valuation. Accordingly, the course
will focus on several factors essential to this goal. These include (1) understanding
process that generates accounting numbers and its implications for the quality of those
numbers for decision purposes, (2) understanding the business environment a firm operates in and the
firms financial, accounting and operating strategies, (3) tools for assessing a
firms performance including ratio and cash flow analysis,
and (4) using accounting numbers to forecast future earnings and cash flows and to estimate firm value.
This course is intended for students with little or no practical work
experience in security valuation. However, the course does presume
an understanding of basic corporate finance theory and financial
accounting. This course should be of value to students who expect to
be in senior positions within corporations and will determine financial
reporting policies, as well as those in investment banking, venture
capital, investment management, consulting or public accounting.
MODE OF INSTRUCTION: Lecture and Case Discussion
GRADE DISTRIBUTION: Class Participation (30%), a Group Project and Paper (30%), and web-based exercises (40%).
APPROPRIATENESS: Non-GSB students need permission of instructor
CAPACITY: Limited to 66 students