MPSE FIN 7002
The aim of the course is (i) to familiarize students with the tools used in financial statement analysis (ii) to apply these tools in the evaluation of ICT companies and (iii) to introduce students to the fundamental concepts and tools in capital budgeting and portfolio theory.
The course thus allows students to master fundamental techniques used in business management to integrate the ICT sector with a good knowledge of managerial dimension while enabling them to apply theoretical knowledge to new and concrete situations.
At the end of this course students are expected to
• Analyze a company’s financial statements to evaluate its performance using ratio analysis
• Break down key ratios using a DuPont analysis and compare and interpret changes in ratios across companies and over time
• Analyze financial statements of companies in the ICT sector
• Evaluate projects based on NPV and IRR analyses
• Describe a stock portfolio in terms of its expected returns and riskiness
• Understand the fundamental asset pricing model(s), CAPM
• Describe the elements of cost of capital and estimation of its components
• Attendance and participation in class
• Written report and presentation
• Final Exam
Jonathan Berk and Peter DeMarzo
4th Edition, Pearson
Financial Accounting, An International Approach
Jagdish Kothari and Elisabetta Barone
2006, Prentice Hall
Students are expected to be familiar with the fundamental notions of financial accounting
The course rests on lectures and in-class exercises to introduce key concepts and their applications. Students are also expected to carry out a financial statement analysis of an ICT company of their choice in groups and present their results at the end of the course as well as hand in a 10-15-page written report.
Master of Science