Financial Analysis and Valuation

This unit builds on foundational finance concepts to develop core skills in analyzing financial statements, measuring firm performance, and valuing financial instruments. Students apply time-value-of-money methods, evaluate capital structure and debt management choices, and interpret market instruments and risks to prepare for advanced corporate finance decision-making.

Learning Objectives

• Analyze income statements and related financial data to compute and interpret liquidity, solvency, profitability, and efficiency ratios, including common-size comparisons for benchmarking
• Apply time value of money techniques to calculate future value, present value, bond prices, yields, and net present value for cash flows and capital projects
• Evaluate financing options and capital structure by comparing debt, equity, and hybrid instruments, assessing cost of capital, bond ratings, interest rate and inflation risk, and strategies for maintaining healthy debt
• Demonstrate understanding of market instruments and trading mechanisms by distinguishing order types, options characteristics, exchange-rate impacts, and by preparing investor communications that summarize investment implications