Financial Analysis and Control

Course Code: FIN 412

Credit Hour: 3

Course Group: Specialization Courses: Finance

Framework and Need for Financial Statement Analysis; Financial Information and Capital Markets; Objectives of FA; Demand for and Supply of Financial Statement Information; Regulatory and market forces; costs associated with Disclosure; Accounting Information; Financial Equilibrium; Free cash flow and Sustainable Growth; Introductory Techniques- Ratio Analysis- Liquidity, Solvency/leverage, Profitability/Efficiency of Assets Ratio, DuPont Analysis, Assumption and Properties of Financial Ratio; Cross-Sectional analysis of FSA-Criteria used to select peer groups; Aggregation options in cross-sectional analysis; Industry Comparisons of financial Ratio; TimeSeries analysis of FSA- Issues & Approaches; Earnings Management and Smoothing; Statistical Tools for TimeSeries Analysis; Analysis of Financial Statement: A Synthesis- Adjusted Financial Ratio; Projection of Financial Requirements; Pro-forma statement; Financial Planning and Forecasting; Distress Analysis and Financial Information- Univariate Models of Distress Prediction, MDA, Altman’s Model-Z Score analysis; Loan Decision/Credit Analysis and Financial Information; Quantitative Scoring Model; Credit Rating Score; LRA analysisassessment of business risk; Financial Control- Corporate governance and Financial control; Control system for social and economic management; Financial control of portfolio management decisions.

Texts:

George Foster, Financial Statement Analysis – 2nd Edition, 1998.

Penman, S. H. Financial Statement Analysis and Security Valuation- 4th Edition, 2010.

White, Sondhi and Fried, The Analysis and Use of Financial Statement – 3rd Edition, 2003.