37299 - Financial Analysis

Learning outcomes

This course aims at introducing students to the analysis of financial information presented in firms' financial reports. At the end of the course students will be able to:

• Describe and apply the basic techniques of financial statement analysis;
• Explain the relationship between strategic business analysis, accounting analysis and financial analysis;
• Identify and utilise value-relevant information contained within financial statements;
• Recognise and explain the fundamental role of accounting numbers in the valuation of firms;
• Understand the impact of financial reporting choices on the usefulness of reported earnings to predict future performance;
• Prepare a written analysis of a listed company, on the basis of notions and techniques covered in the course.

Course contents

The course includes two main modules:

• Module 1, which introduces and develops a framework for business analysis and valuation using financial statement data;
• Module 2, which shows how such framework can be applied to a variety of specific decisions, such as equity security analysis, credit analysis, and the estimation of a firm's value.

The following main topics will be explored:

• Framework for business analysis and valuation using financial statements;
• Review of business activities and financial statements;
• Profitability analysis and interpretation;
• Cash-flow-based valuation;
• Equity security analysis and interpretation;
• Credit risk analysis and interpretation;
• Accounting-based valuation models.

Readings/Bibliography

Title: Business Analysis and Valuation: IFRS edition, 4th Edition

Authors: Palepu/Peek/Healy

ISBN10: 1-4737-2265-9

ISBN13: 978-1-4737-2265-1

© 2016

Paperback (£ 54.99) o E-book (£ 45.83)

Teaching methods

The pedagogical approach is based on a combination of lectures, exercises, discussion questions and case studies. Attendance is highly recommended. It is expected that students come to class ready to contribute to classroom discussions. Students are strongly encouraged to interact with the teacher, asking questions, making comments, and providing answers.

Assessment methods

Compulsory written exam.

The final mark will be calculated as the average mark of two mid-term exams. Only by passing the first mid-term test (min 18/30), it is possible to take the second mid-term test. In case of failure of the first mid-term, or passing the first mid-term but failing the second mid-term, it is possible to take the full exam (June, July, and September).

Exams include: 15 multiple choice questions, 2 exercises, and 1 open question.

Only calculators are permitted during the exams (no mobile phones, no other tools).

Teaching tools

Supplement materials (free access) is available on the Student Companion Site: http://www.cengagebrain.com/cgi-wadsworth/course_products_wp.pl?fid=M20b&product_isbn_issn=9781473722651

All news and information related to the course and further teaching materials will be available on the e-learning platform (https://elearning-cds.unibo.it).

Office hours

See the website of Cristina Gianfelici