Financial Analysis and Valuation

This unit develops foundational corporate finance skills: analyzing financial statements, applying valuation techniques, and evaluating debt and capital-structure choices. Students will work with ratios, time-value-of-money calculations, bond and hybrid instruments, and market concepts to prepare investment analyses and investor communications.

Learning Objectives

• Analyze income statements and common-size financial statements to compute and interpret key financial ratios (profitability, liquidity, efficiency, and leverage) for evaluating corporate performance
• Apply time value of money and valuation techniques to calculate future value, present value, net present value, bond pricing, yields, and rate-of-return measures for investment decision making
• Demonstrate understanding of capital structure and debt management by evaluating debt ratios, bond terms, hybrid securities, order types, and the impacts of inflation and exchange rates on risk
• Evaluate market concepts—including market efficiency and risk-adjusted returns—and prepare investor-focused analyses and communications using financial data and resources