Course Code: 542413 Marks: 100 3 Credits Class Hours: 45

Course Title: Financial Analysis and Business Valuation

1. A Framework for Business Analysis and Valuation Using Financial Statements: Overview
of Financial Statement Analysis: Business Analysis, Financial Statement- Basis of Analysis,
Financial Statement Analysis Preview ;Financial Reporting and Analysis.
2. Basic Financial Statement Analysis Techniques: Broad Guidelines for Financial Statement
Analysis, Techniques of Financial Statement Analysis, Absolute Studies: Comparative
Statements, Time Series Techniques, Trend Statements, And Supplementary Statements.
3. Financial Analysis: Ratio Analysis- Liquidity, Solvency/leverage, Profitability/Efficiency of
Assets Ratio, DuPont Analysis,-Assumption and Properties of Financial Ratio; Cash flow
analysis.
4. Business Activities and Financial Statement: The cash flows, Business Activities, All Stocks
and flows, FCF, Disposition of FCF, Drivers of Dividend, Business Profitability.
5. The Analysis of the statement of shareholders’ equity: Reformulating the statement of owners
equity, Dirty Surplus Accounting, Hidden Dirty surplus.
6. The analysis of balance sheet and Income statement: Reformulation of balance sheet and
income statement, comparative analysis of the balance sheet and income statement, ratio.
7. The analysis of the cash flow statement: Calculation of FCF, GAAP Statement of cash flow
and reformulated cash flow statement, Cash flow from operation.
8. The analysis of profitability: Cutting to the core of operation, First Level, Second Level, Third
Level, Break down.
9. The analysis growth and sustainable earnings: What is growth, Introduction to growth
analysis, The analysis of changing profitability and sustainable earnings, The analysis of growth
in shareholder security.

Recommended Books:
1. Palepu, Bernard & Healy, (2000). Business Analysis & Valuation Using Financial Statement,;
3rd edition; South-Western, College Publishing.
th
2. Subramanyam, K.R. and Wild, John J., (2008). Financial Statement Analysis, 10 Edition,
McGraw-Hill
3. Penman,S.H. (2010).Financial Statement Analysis and Security Valuation, 5th Edition,
McGraw-Hill.
nd
4. Foster, George (1998). Financial Statement Analysis, 2 Edition, Prentice Hall.