Professional Documents
Culture Documents
Required Textbook
Financial Statement Analysis and Security Valuation 5th edition (2013) by Stephen H. Penman (McGraw-Hill Irwin)
Recommended Textbook
If you would like supplemental text as your reference for the course I would recommend the following textbooks:
Financial Statement Analysis and valuation 4th edition (2015) by Peter Easton, Mary Lea McAnally, Gregory Sommers, and Xiao-Jun Zhang
(Cambridge Business Publishers)
My commitment
I recognize that you are investing time and energy in this course with the goal of improving your understanding of accounting and financial
reporting. This course has been designed explicitly to help you realize this goal. However, if at any time you feel dissatisfied with your learning in
this course, please discuss those concerns and feelings with me. You can do this after class or during office hours. In addition, you also may make
an appointment to see me at a mutually convenient time. I will do my best to help you by explaining the material or by suggesting additional
resources and options. I am here to help you learn.
My policy is to address issues before they become problems. Consequently I encourage students to provide me with feedback about all
aspects of the course and my interactions with you. You can do this after class, during office hours, or at a mutually convenient time.
Your commitment
THE KEY TO SUCCESS IN THIS COURSE IS FOR EACH OF YOU TO DO THE ASSIGNED WORK EVERY DAY BEFORE COMING TO
THE CLASS. The homework and case preparation for each day is my way to get you to learn the technical bits and pieces you will need to
follow the discussion in class. Do the assigned reading and homework every day, and bring two copies of all homework to class. Turn in one
copy to me and keep the other for your use in class discussion. You will be called upon in class to present your solution to me and your fellow
students and to contribute to class discussion. Preparing for class presentation or contribution to discussion means reading the problem or case
and doing some thinking and forming solutions so that you can present it or participate in class discussion. No late work will be accepted under
any circumstances. No make-up work will be assigned.
Course Organization
The class will be conducted on a presentation/discussion basis with occasional lecture on important conceptual points. Time will be provided at
the start of each session for short questions about material covered in the preceding class. The remainder of the class will be devoted to the
material assigned for the day. Each student is expected to read and study the reading and other assigned material before each class meeting.
Students will be called upon in class to address the material of the day.
Grading
Number of
Points
25
% of
Total
12.5%
1. Individual homework
assignments
2. In-class quizzes
20
10%
3. Mid-term Exam
Date is as indicated on the schedule outline. The exam is to cover the material
discussed since the beginning of the course up to the mid-term exam.
30
15 %
4. Participation
10
5%
5. Group case
assignment
Full Write-up case. The due date is indicated on the schedule outline.
15
7.5%
6. In-class group
exercises
20
10%
7. Group Project
Final Project
20
10%
8. Final Exam
60
30%
200
100%
into groups of four students. As a group you will be required to conduct a complete analysis for the company. A road map of the steps you are going to follow
can be downloaded from the text books web site. Build your own analysis product (BYOAP) summarizes all the steps for the project. Complete firm analysis
has four parts: (1) a business analysis, which includes an analysis of the primary industry or industries in which the firm operates, and an analysis of the firms
competitive and corporate strategies; (2) reformulating the financial statements according to Penmans presentation; (3) a financial analysis, which includes
ratio analysis and cash flow analysis (specific focus will be given to the P/E and P/B; and (4) a prospective analysis, which includes forecasts of future
performance and a valuation analysis. The written report for all the groups will be due on Wednesday 12/9/2015 by 5:00 at my office.
6. Final Exam:
The final exam will be scheduled by the University. Once the instructor is informed of the time and location of the exam, he will share this
information with the students.
Course Outline:
General Topic
Section One: Financial Statements the Basis for Analysis
Overview of the course
1 M. 8/24
Reading Assignment
Session
2 W. 8/26
Accounting Clinic # 1
3. M. 8/31
Chapter Two
4. W. 9/2
Accounting Clinic # 2
M. 9/7
5. W. 9/9
Chapter Eight
Chapter Nine
7. W. 9/16
Chapter Nine
8. M. 9/21
Chapter Nine
9 . W. 9/23
10.M. 9/28
Accounting Clinic # 4
11. W. 9/30
Chapter Ten
12. M. 10/5
Chapter Ten
Chapter Eleven
Chapter Twelve
Homework # 3 is due
13. W. 10/7
14 M. 10/12
19. W. 10/28
20.M. 11/2
Chapter Five
21 W. 11/4
Chapter Five
22 M. 11/9
The value of operations and the evaluation of P/B and P/E ratios
Chapter Fourteen
Pages 436 - 442
In Class Quiz # Two
23. W. 11/11
24. M. 11/16
Chapter Six
25. W. 11/18
M. 11/23 till
F. 11/27
Section Four: Prospective Analysis and Forecasting
26. M. 11/30 Valuation and Active Investing
Chapter Seven
27. W. 12/2
28. M. 12/7
The value of operations and the evaluation of P/B and P/E ratios
29. W. 12/9
Chapter Six
Chapter Thirteen
Chapter Fourteen
Pages 443 - 450
Catch-up day and group project meetings
Projects are due by 5:00 PM at my office