Financial Analysis, Valuation, and Ethics

This unit develops advanced skills for analyzing financial statements, computing and comparing key ratios, and performing bond and equity valuations using DCF, terminal value, and simulation techniques. It also examines regulatory rules, analyst responsibilities, conflict management, and historical case studies to ground valuation practice in ethical and risk-aware decision making.

Learning Objectives

• Analyze a company’s financial statements and cash flows by calculating and interpreting profitability, efficiency, liquidity, and leverage ratios to compare peer performance and assess bondholder position
• Apply valuation techniques — including discounted cash flow models with terminal value, Monte Carlo sensitivity analysis, bond pricing, and per-share valuation — to produce quantitative valuation ranges and scenario results
• Demonstrate the ability to create and present an investment banking analysis and proposed deal structure that adheres to analyst rules, proxy disclosure requirements, and best practices for managing potential conflicts of interest
• Evaluate historical failures and enforcement examples (e.g., Enron, mortgage crisis, Lehman) to identify accounting misstatements, regulatory shortcomings, and market risks, and recommend controls and mitigation strategies to protect investors