FIN543:WORKSHOP ON FINANCIAL ANALYTICS

Course Outcomes: Through this course students should be able to

CO1 :: analyze financial ratios to assess a firm’s past performance as well as problems and
suggest strategies for dealing with problems

CO2 :: use trend and regression analysis to forecast sales and any other financial variables

CO3 :: calculate the present value and future value of a stream of cash flows

CO4 :: apply several discounted cash flow (DCF) models to value a common stock

CO5 :: employ sensitivity and scenario analysis in capital budgeting decisions

CO6 :: demonstrate various bond valuation techniques to make investment decisions

List of Practicals / Experiments:

Financial statement analysis

• understanding of basic financial statements (balance sheet, income and cash flow)

• financial ratios (liquidity ratios, efficiency ratios, coverage ratios, leverage and profitability ratios)

• z score model for financial distress prediction

Financial forecasting
• forecasting the income statement

• forecasting assets on the balance sheet

• linear trend extrapolation

• regression analysis

Time value of money

• present value (single and multiple cash flows)

• future value (single and multiple cash flows)

• annuity

• perpetuity

• growing annuity

• loan amortization

• compounding interest rates

Business valuation models

• dividend discount models

• return on equity

• cost of equity (gordon growth model)

• analysis of beta

• capital asset pricing model

• weighted average cost of capital

• free cash flow to equity

• free cash flow to firm

• relative valuation approach

Capital budgeting and risk analysis

• net present value

• internal rate of return

• pay back and discounted payback period

• sensitivity analysis

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 • scenario analysis

Analysis of bonds and long term financing

• valuation of bonds

• current yield

• bond equivalent yield

• macaulay duration

• modified duration

• convexity

Text Books:
1. FINANCIAL ANALYSIS WITH MICROSOFT EXCEL by TIMOTHY R. MAYES AND TODD M.
SHANK, CENGAGE LEARNING
References:
1. MICROSOFT EXCEL 2010 DATA ANALYSIS AND BUSINESS- MODELING by WAYNE L.
WINSTONE, PRENTICE HALL

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