Description: Lecture and cases, three hours. Requisite: course 403. Focus principally on equity valuation from financial accounting data, with emphasis on construction of proforma financial statements and application of discounted cash flow and residual income valuation approaches. Consideration of complications posed by capital structure, recapitalizations, derivative securities, intercorporate investments, abandonment options, accounting restatements, and equity trading. Use of multiples in valuation and pricing anomalies. S/U or letter grading.

Units: 4.0