2

6/23/2021/

6/23/2021

3

6/28/2021/

6/28/2021

4

6/30/2021/

6/302021

5

7/7/2021/

7/7/2021

6

7/12/2021/ 7/12/2021

7

7/14/2021/

7/14/2021

8

7/19/2021/

7/19/2021

9

7/21/2021

7/21/2021

1

6/21/2021/6/21/2021

Ch. 3, 4 & 5, Session 2 notes.

Hand in Assignment 1: Kohl’s 2020

Ratio analysis

Ch. 5 review, Ch. 6, Prep. for Assignment 2

Session 3 notes.

Hand in cash flow Assignment 2 Kohl’s 2020. Ch. 7, 8, Session 4 notes.

Case: “The 80-minute (proforma) forecast”

Submit take-home Midterm Examination

Session 5 notes. Ch. 9, 10 (skip Section 10.2)

Ch. 10 (skip Section 10.2) continued.

Session 6 notes

Group presentations 1 Chs. 7-10 (review)

Session 7 notes.

Chs. 11, 12. Registration S-1 filings.

Discussion of recent IPO valuations. Session 8 notes.

Session 9 notes.  What are accounting-based return anomalies? What is earnings management? What is aggressive accounting?  Effects of social networks.

Chs. 1, 2, Kohls Form 10-K 2020.

Session 1 notes.

Breakouts: Kohl’s, Facebook, ExxonMobil

Accounting analysis. How to analyze a Form 10-K. Understanding the business.  Financial ratio analysis. Team discussion on ratios.

Cash flow reports. Reconstruct a public company cash flow statement.

Structured forecasting. Pro forma reports.  Review Chapters. 3-8.

Cost of capital. Data analysis.

Discounted free cash flow (FCF) valuation analysis.

Post-midterm review

Sensitivity analysis. Model validation. Valuation reports.

Group presentation 1. Apply the FCF valuation model to a company of your choice. Presentation examples.

Special valuation situations. Young and high-growth companies. Small companies. Initial public offerings. Identifying and valuing innovation.

Event studies and event-based valuation. Securities class actions and SEC actions. Damages in accounting-related securities litigation.

Information environment, Role of analysts.

Information collection from accounting reports.

7/26/2021/

7/26/2021

Group presentation 2

Class action web sites: securities.stanford

Course wrap-up.

Group presentation 2. Merits of “unsolved” securities fraud allegations about bad accounting.  Presentation examples

Evaluation of Financial Information Summer 2021: MGB-272 & MGP-272 (On-line)


Book: Lundholm, R. and R. Sloan, Equity Valuation and Analysis, Fifth Edition, 2019 (ISBN-13 978-1079983357).

10