Analysis of financial statements
Associate Professor Steve Easton
One 3-hour session per week * Second semester * Clayton * Prerequisite: AAF3140 or MBA5190 * Corequisite: AAF4140 or with approval of lecturer
Synopsis The subject concentrates on the analysis and interpretation of financial statements for public companies. It combines the practicalities of financial ratio analysis for public companies with the conceptual issues raised by the efficient capital market hypothesis, portfolio theory and risk adjustment. Topics covered will be drawn from financial ratio analysis, analysis of short-term financial stability, properties of accounting numbers and financial ratios, predicting company failure - methodology and results, fundamental analysis, risk and financial information, `event study' methodology, share returns and financial information (including forecasts), timeliness of accounting information, options and financial information.
Assessment Written (3 assignments): 80% * Class presentation: 20%