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Accounting and Financial Analysis (MiM)

While financial statements represent the standard way to analyze past business activities, they are also the primary tool used to forecast future business activities to derive cash flows. We will use a structured framework that allows analyzing the key value drivers of a firm's or projects value. Cash flows are used as inputs in discounted cash flowornet present value analyses. To perform these analyses effectively, students needa solid understanding of the relation betweena project's risk, the risk-contribution of its funding with equity or debt, and the return that investors that fund projectsrequire.
Course code
ACCT503
Course type
MSc Course
Weekly Hours
2,5
ECTS
5
Term
HS 2020
Language
Englisch
Lecturers
Dr. Michael Erkens, Dr. Ying Gan
Please note that exchange students obtain a higher number of credits in the BSc-program at WHU than listed here. For further information please contact directly the International Relations Office.
We will cover basic finance concepts such as value and capital budgeting rules, risk and returns, and capital structure. We will also cover basic accounting concepts such as financial ratio analysis, forecasting, and valuation in general.
Date Time
Thursday, 03.09.2020 08:00 - 13:00
Monday, 07.09.2020 13:45 - 18:45
Thursday, 10.09.2020 08:00 - 11:15
Thursday, 01.10.2020 15:30 - 18:45
Monday, 05.10.2020 15:30 - 20:30
Thursday, 08.10.2020 11:30 - 15:15
- Intermediate Accounting - IFRSedition;Kieso, Weygandt, Warfield; 3rdedition - Corporate Finance; Welch, 4th edition (available for freeviahttp://book.ivo-welch.info/home/)- Equity Valuation and Analysis, Lundholm and Sloan, any edition is fine (available via the library)- Line-Item Analysis of Earnings Quality, Melumad/Nissim (available for free viahttp://www.columbia.edu/~dn75/Line-Item%20Analysis%20of%20Earnings%20Quality.pdf)
Lectures based on conceptual examples, theoretical and practical exercises, and accessible scientific evidence. There will be exercises to revisit the concepts from the lectures (primarily on a voluntary basis).
Exam
Because the course is right at the beginning of students Master studies, the only prerequisite is some memory of introductory Finance and Accounting classes at the BSc level.
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