15.535 | Spring 2003 | Graduate

Business Analysis Using Financial Statements

Calendar

LEC # TOPICS KEY DATES
1 Introduction: Accounting Scandals, Business Valuation and Market Efficiency

2 The Basics of Company Valuation: DCF Foundations Setting the Stage for Using Accounting Information

3 Cash Flow Analysis: Is Cash King?

4 Using Accounting Earnings for Valuation - Why Earnings and Not Cash Flow? Submit group names and select company for Project
5 Comparative Analysis: What Do Analysts Do?

6 Turbo Accounting I - A Review of How to Read a Financial Statement Homework #1 Due
7 How Companies Cook the Books

8 Detecting Earnings Management: Applied Analysis

9

  1. Quiz #1 - In Class

  2. Final Guidance/Overview on Part 1 of Project

Optional Review Session scheduled day before Quiz

You must e-mail Part 1 of your team’s report to me and to the due diligence team by 5:00 pm the day after class 9.
10 Analyst Team Presentations and Due Diligence Response by Matched Teams “Cash Flow Projections and Earnings Quality”
11 Analyst Team Presentations and Due Diligence Response by Matched Teams “Cash Flow Projections and Earnings Quality”
12 Risk Assessment: Do Financial Statements Capture Risk?

13 Risk I: Cost of Capital: Is CAPM Dead?

14 Risk and Accounting Trading Strategies: Do Investors Understand Accounting?

15 Risk II: Accounting #’s in Contracts: Ratio Analysis and Bankruptcy Detection

16 Mergers and Acquisitions: Impairment of Goodwill, Writedowns, Private Firm Valuation Homework #2 Due
17 Employee Stock Options and Valuation: Should Options be Expensed? Understanding the current debate

18

  1. Quiz #2 - In Class

  2. Final Guidance/Overview on Part 2 of Project

Optional Review Session scheduled day before Quiz
19 Off Balance Sheet Activities - Deconstructing the Enron Debacle and Beyond

20 Pension Plans - The Next Accounting Disaster?

21 International Financial Analysis

22 Hot Topics in Accounting and Valuation: + Capstone Homework #3 Due

You must e-mail your team’s complete report (Part 1 and Part 2) to me and to the due diligence team by 5:00 pm the day after class 23.
23 Analyst Team Presentations and Due Diligence Response by Matched Teams “Company Valuation and Risk Assessment”
24 Analyst Team Presentations and Due Diligence Response by Matched Teams “Company Valuation and Risk Assessment”

Course Info

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Spring 2003
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