GRA 6298 Financial Statement Analysis and Valuation
GRA 6298 Financial Statement Analysis and Valuation
Auditors must have knowledge of financial statement analysis and valuation. The course exposes students to these topics.
At the end of the course, students will have knowledge about:
- Strategic financial and non-financial goals of different types of organizations.
- Accounting quality analysis and reformulation of financial statements.
- Cost of capital estimation, payout policy, and different capital structure theories.
- Strategy analysis and construction of pro forma statements taking into account sustainability issues that affect the firm.
- Different valuation methods and tools for assessing their accuracy.
At the end of this course, students should be able to:
- Identify and evaluate strategic and non-financial objectives of organizations.
- Analyze the accounting quality of the financial statements.
- Adjust the financial statements to correct for distortions.
- Reformulate the income statement and the balance sheet, and calculate FCFF and FCFE.
- Perform a strategy analysis and use it to make consistent pro forma statements.
- Estimate the cost of equity, WACC and the required rate of return on operating asset, and assess how capital structure affects the cost of capital.
- Choose a proper valuation method given the characteristics of the firm and estimate the value of the firm given the chosen method.
By the end of the course the student will have acquired the capacity to critically use the financial statements for valuation purposes and make the proper adjustments when the situation requires it. The student will also be in a position to identify which valuation method is most appropriate in every situation. Furthermore, the students will be aware of how the way that firms handle sustainability issues has an impact on future cash flows and, therefore, on the value of the firm.
- Strategic Financial and non-financial objectives of different types of organizations.
- Accounting quality analysis.
- Accounting quality: adjustments.
- Financial statement analysis.
- Reformulation of the financial statements. Calculation of FCFF and FCFE.
- Cost of capital, return on operating assets and the impact of capital structure or payout policy
- Strategy analysis.
- Construction of pro-forma statements.
- Different valuation methods.
There is a consistent and continuous integration of computer-based tools across all course topical areas. Students can expect to perform most, if not all, coursework online, using various computer tools.
Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class.
All exams must be passed to get a grade in this course.
All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.
Disclaimer
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
| Assessments |
|---|
Exam category: Submission Form of assessment: Submission PDF Exam/hand-in semester: First Semester Weight: 30 Grouping: Group/Individual (1 - 3) Duration: 2 Week(s) Exam code: GRA 62981 Grading scale: ECTS Resit: Examination when next scheduled course |
Exam category: School Exam Form of assessment: Written School Exam - pen and paper Exam/hand-in semester: First Semester Weight: 70 Grouping: Individual Support materials:
Duration: 3 Hour(s) Exam code: GRA 62982 Grading scale: ECTS Resit: Examination when next scheduled course |
All exams must be passed to get a grade in this course.
| Activity | Duration | Comment |
|---|---|---|
Teaching | 24 Hour(s) | Lectures consist of several activities: explanations, cases, discussions, and so on. |
Digital resources
| 12 Hour(s) | Asynchronous activities such as: videos, cases, articles, discussions, group work, etc. |
Examination | 36 Hour(s) | Work on the mid-term assignment |
Prepare for teaching | 36 Hour(s) | Preparation of lectures, for example, working with proposed cases to be discussed and/or solved in the next lecture. |
Examination | 52 Hour(s) | Preparation for final exam. |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.