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Session |
1 |
2 |
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3 |
4 |
5 |
6 |
7 |
9 |
10 |
11 |
12 |
13 |
14 |
15 |
Exam |
|
Date |
8/22 |
8/29 |
9/2 |
9/12 |
9/19 |
9/26 |
10/3 |
10/10 |
10/17 |
10/24 |
10/31 |
11/7 |
11/14 |
11/21 |
11/28 |
12/5 |
|
Day |
Mon |
Mon |
Fri |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
|
Session |
Date |
Assignment |
Name |
|
1 |
22-Aug |
|
|
|
2 |
29-Aug |
Current Developments 1 |
SEC Charges Ernst & Young At Bally |
|
3 |
2-Sep |
|
|
|
4 |
12-Sep |
Quiz 1 |
Cash Flow |
|
5 |
19-Sep |
Quiz 2 |
Financial Statements and ratios |
|
6 |
26-Sep |
Case 1 |
Integrated Analysis Pfizer Takeda |
|
7 |
3-Oct |
Quiz 3 |
Inventories |
|
8 |
10-Oct |
Case 2 |
Nucor |
|
9 |
17-Oct |
Exam |
Midterm |
|
10 |
24-Oct |
Current Developments 2 |
Worldcom |
|
11 |
31-Oct |
Case 3 |
Texaco |
|
12 |
7-Nov |
Quiz 4 |
Investments |
|
13 |
14-Nov |
Case 4 |
Coca Cola |
|
14 |
21-Nov |
Current Developments 3 |
Lehman |
|
15 |
28-Nov |
Quiz 5 |
Debt and Equity Markets |
|
Exam |
5-Dec |
Exam |
Final |
 1 Introduction
110826
3
Reading:
Chapter 1,
Notes ,
First Day
Assignments,
2 Financial statements: The raw data of analysis; Accrual
concept of income; Analysis of cash flow information.
Reading: Chapters 2 and 3
Ignore: Nonrecurring
items (p. 52-61);
Notes
Bad Debts and CFO
03-Lucent-1999-10K-Valuation (1 page)
Lucent-1999 Financials
Lucent-1999 l 10-K
Lucent-2000
Financials
Ford 2003
Ford 2004
Kraft & Cadbury
Apple and iphones
Class discussion:
3-4
3-10; Homework:
3-09 3-12
03-01,02,03,05
SEC,
Ernst & Young and Bally Total Fitness
3 Foundations of Ratio and Financial Analysis; Common
size statements; Categories of ratios; Integrated ratio analysis. Earnings per
share; Alternate capital structures.
Reading: Chapter 4
Notes
Financial Assets Financial Analysis of
Pfizer
Dell 04 10K
(Look at Cash Cycle in page 22)
Class discussion:
04-07 & 08
04-20 & 21;
Homework:
4-Rest
4 Analysis of inventories:
Impact of change in prices; Alternative methods of computing cost; Adjustments
from LIFO to FIFO; Financial ratio effect; Reporting and measurement issues;
Empirical perspectives; Market reactions to method changes; Is a change to LIFO
good news or bad news?
Reading: Chapter 6
Notes
IRS Rules
IRS
Court cases
Form 970
Class discussion:
06-08 & 09; Homework:
06-01 to 04
06-rest
5 Capitalization versus Expensing: Acquiring the asset: The
capitalization decision; Capitalization of interest costs; Intangible assets
Analysis of Long Lived Assets
Reading: Chapter 7 Ignore Asset Revaluation and Regulated Utilities
p. 240-242
Chapter 8 Ignore Impairment of Long Lived assets and Impairment p. 275-282
Long lived assets notes
Long lived assets example
Estimation notes 1
Estimation notes 2
Class discussion:
07-09 (Pfizer)
8-14; Homework:
07-01, 07, 12
07-rest
8-5 to 10
6 Income taxes
Deferred taxed; effective tax rate; analysis of tax footnote disclosures;
permanent and temporary tax differences.
Reading: Chapter 9
Income tax notes
Class discussion:
Tax disclosures of Pfizer
Tax related disclosures in
GE statements Look for deferred tax assets and tax related disclosures in
Amazon statements
Amazon Taxes
Homework:
9-6, 7, 10, 12, 14
7 Analysis of financing liabilities: Long term debt; debt
with equity features; effects of changes in interest rate; retirement of debt;
Bond covenants; accounting based constraints; Leases and incentives, financial
reporting for leases; Off-balance sheet activities.
Reading: Chapter 10, Chapter 11
(Ignore: Appendix 11) Notes
Class discussion:
10-23
Off-balance-sheet activities and Lease Notes
Denominator Year Notes
Look at lease disclosures in:
Sears 1999
J C Penney 1999
11-19 to 22 Sears
Homework:
10-03 & 04;
10-rest;
11-17;
11-Rest
 DUE
2
Inventory
Analysis of Nucor Nucor 10-K
8 Off Balance Sheet Financing Techniques
Class discussion: Review
Watch:
Tax me if you can on
Frontline
Responses form the leasing industry:
ELA Online
DUE
2 Worldcom
9 Mid-term Examination: Open Book and Notes
10 Intercorporate Investments
Investment in securities; Analysis of marketable securities; Equity method of
accounting; Consolidations and comparison
Reading: Chapter 13;
Notes
Class discussion:
Marketable Securities
Example
Part 1
Part 2
13-13 ExxonMobil:
10K,
Fill-in,
Analysis
13-16 Coke segments
13 Rest
11 Business Combinations and Subsidiaries Off-balance sheet
activities and avoiding non-consolidation
What happened at Enron?
Notes
Reading: Chapter 14;
Notes
The Overleveraged Disneyland: Will Disney Take Losses in France?
DUE
3 Texaco Assignment
Texaco 1999 Annual Report
Texaco 1999 10-K
12 Accounting Based Measures of Risk
Prediction of Bankruptcy; the Prediction of Debt Risk and Equity Risk; Debt
ratings and covenants; Cost of debt prediction using accounting variables
Reading: Chapter 18,
Notes
S&P
Corporate criteria (115 pages - not everything!)
S&P ratings (7 pages)
S&P
Rating methodology
(35 pages)
Altman Paper: Revisiting the Z-score and Zetaฎ models
18 Appendix
Class discussion:
18-1 to 3,
18-4 Coke; Homework:
18 -05 to 07 (Westvaco financial statements);
18-08 to 10
13 Equity Analysis (Empirical Methods)
Classical Approach; Fundamental Analysis; Market Based Research; Positive
Accounting Research.
Reading: Chapter 5
Notes;
Class
discussion:
05-08,09;
Homework:
05-rest
DUE
4
Coca-Cola and
Coca-Cola Enterprises
14 Empirical Analysis II
Presentations
DUE 3
Senate Investigation of rating agencies in the aftermath
of Enron
Enron and the credit rating agencies
Is Enron Overpriced? Mar-05-01-Fortune
15 Review
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