This 2-unit spring course is designed to help students develop financial statement analysis and valuation skills. We will start with a review of corporate financial statements and disclosures. Students will then learn the use of financial ratios for measuring financial risks and returns, and learn the use of various accounting concepts and tools, including accruals, to identify red flags of financial distress or earnings manipulations. We will also learn to apply the analytical techniques to develop forecasted financial statements and use the information to value a firm’s equity. The course will be relevant for students in the Law and Business program of study, and to others who wish to prepare for careers in capital markets, corporate transactions, commercial litigation, mergers and acquisitions, and other related areas.
Prerequisite: Prior accounting coursework of at least one college level course on accounting, or work experience dealing with financial statements.