HARVARD UNIVERSITY EXTENSION SCHOOL MGMT E-2620 BUSINESS ANALYSIS AND VALUATION Fall 2015 SEMESTER (Preliminary) Faculty Lecturer Teaching Assistant Ned Gandevani, MBA, PhD Office Phone: 617-603-6951 Cellular Phone: 617-910-6256 E-mail: Gandevani@fas.harvard.edu Office hours: Tuesdays 5 to 5:30 and 7:30 to 8 pm Mr. Kanwar S. Anand Phone: (804) 512-4078 Email:kanwar_singh@g.harvard.edu Live online webinar: Saturdays 7 pm - 8 pm EST. Course Description Financial statements are important sources of insight as to the financial health, prospects, and value of a company. But just how accurate are these reports? Is management's view trustworthy or biased? What are the warnings? This course introduces a framework for the analysis of financial statements and financial plans, with particular focus on their usefulness in valuing and financing companies and evaluating corporate and management performance. (4 credits) Course Format The course format will be based on the assigned readings, exercises, and cases from the textbook. The homework and cases should enhance your understanding and comprehension of the material in the textbook. In addition, the cases should provide a link from the classroom to relevant business situations and problems. Online option in on-campus courses This course meets on campus each week, and the lectures are videotaped and posted online. If you enroll in courses with an online option, you can attend lectures in person; watch them online at your convenience, or both. Prerequisite Since this is very similar to a second year MBA course that builds on what was covered a number of core courses, a successful completion of graduate level finance and accounting
courses is also required here: Financial Accounting Principles MGMT E-1000. Managerial finance MGMT E-2020, Financial Statements Analysis and Valuation MGMT E-2600, and Corporate Finance MGMT E-2700 are helpful. Course Materials Required: Financial Reporting, Financial Statement Analysis and Valuation, 8th Edition James M. Wahlen, Stephen P. Baginski, Mark Bradshaw ISBN-10: 1285190904 ISBN-13: 9781285190907 2015 Exams There will be a mid-term and final examination in this course. Exams will be worth 60% towards your final course grade. These exams will occur on the date indicated on the syllabus, unless otherwise noted. The midterm exam will be online. The final exam will have two parts; online and take-home. The take-home project should be submitted on the date indicated on the syllabus. Note: the undergrad students may have a different take-home project from graduate students. Homework and Case Assignments Students are expected to review and complete homework and case assignments using the information that is provided below. These assignments will be worth 40% towards your final course grade: Each weekly assignment should be submitted to Canvas, the course website on the appropriate due date. No late submission is accepted. Grading The maximum score in this class is 1,000 points. The categories, which contribute to your final grade, are weighted as follows. Assignment Points Weighting Case Assignments and Problems 400 40% Mid-term Exam (online) 250 25% Final Exam (Parts A & B) 350 35% Participation Bonus Credit 50 5% Total 1050 105%
Letter Grade Grade % A 94 100% A- 90 93.9% B+ 87 89.9% B 83 86.9% B- 80 82.9% C+ 77 79.9% C 73 76.9% C- 70 72.9% F Below 70% Disability Services Office The Extension School is committed to providing an accessible academic community. The Disability Services Office offers a variety of accommodations and services to students with documented disabilities. Please visit www.extension.harvard.edu/resourcespolicies/resources/disability-services-accessibility for more information. Academic Honesty The Harvard University Extension School expects students to understand and maintain high standards of academic honesty. Examples of academic misconduct include, but are not limited to, the following: plagiarism, cheating and computer network abuse. All work submitted to meet the course requirements is expected to be the student s own work. In the preparation of work submitted to meet course requirements, students are expected to distinguish their own ideas and language from information derived from other sources. Without prior written approval by both instructors, students may not submit the same material for two courses. You are responsible for understanding Harvard Extension School policies on academic integrity (www.extension.harvard.edu/resources-policies/student-conduct/academic-integrity) and how to use sources responsibly. Not knowing the rules, misunderstanding the rules, running out of time, submitting "the wrong draft", or being overwhelmed with multiple demands are not acceptable excuses. There are no excuses for failure to uphold academic integrity. To support your learning about academic citation rules, please visit the Harvard Extension School Tips to Avoid Plagiarism (www.extension.harvard.edu/resources-policies/resources/tips-avoidplagiarism), where you'll find links to the Harvard Guide to Using Sources and two, free, online 15-minute tutorials to test your knowledge of academic citation policy. The tutorials are anonymous open-learning tools. Expectations and Assumptions It is important to your success in this course to remain current with the readings, homework and case assignments. Please be prepared to discuss the assigned readings, cases and homework. Homework, case assignments and examinations will occur on the date indicated on the syllabus. The submission of late case assignments or an unexcused absence from an
examination will not be accepted. I will have office hours by appointment throughout the semester. My office hours in campus are 30 minutes before and after each class. Students Participation To help students to gain a better learning experience, I offer 50 points bonus credit for attendance and participation. Students do no need this to obtain a full credit for the course. However, it s offered as a bonus for those students who participate in one of the four ways listed below: 1. Weekly in person class attendance in campus. 2. Weekly online class attendance; must be active in chat room to gain any credit. 3. Weekly attendance and asking questions in Sections conducted by TAs, at least one per week. 4. Posting a detailed summary for each chapter with proper APA format in-text and end-text citations in Canvas Undergrad Students Students who have signed up as an undergraduate course will need to take Part A of the final exam only. Lesson Plan WEEK DATE TOPIC READINGS ASSIGNMENT 1 9/1/2015 Overview of Financial Reporting, Financial Statement Analysis, and Valuation 2 9/8/2015 Asset and Liability Valuation and Income Recognition 3 9/15/2015 Income Flows versus Cash Flows: Understanding the Statement of Cash Flows 4 9/22/2015 Forecasting Financial Statements 5 9/29/2015 Forecasting Financial Statements Chapter 1 Chapter 2 Chapter 3 Chapter 10 Chapter 10 6 10/06/2015 Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach Chapter 11 7 10/13/2015 MIDTERM ONLINE EXAM: Chapters 1,2,3,10, & 11 8 10/20/2015 Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach Chapter 11
9 10/27/2015 Valuation: Cash-Flow Based 10 11/03/2015 Valuation: Cash-Flow Based 11 11/10/2015 Valuation: Earnings-Based 12 11/17/2015 Valuation: Earnings-Based 13 11/24/2015 Valuation: Market-Based 14 12/01/2015 Valuation: Market-Based 15 12/08/2015 Final Review Chapter 12 Chapter 12 Chapter 13 Chapter 13 Chapter 14 Chapter 14 16 12/15/2015 Due Date for Online and Take Home Parts of FINAL EXAM Final Exam Covers Chapters 1, 2, 3, 10, 11,12, 13 & 14