Introduction to Corporate Finance and Valuation

Overview

• Lecturer is not an accountant and does not aim to become one.
• Importance of understanding accounting for corporate finance and valuation.
• Accounting class is considered overkill for this purpose by the lecturer.

Objective

• Teach enough accounting to be useful in corporate financial evaluation.
• Practical and pragmatic approach to accounting in finance.
• Will take shortcuts and simplify accounting concepts.

Class Structure

1. Financial Statements Overview

   • Income Statement
     • What it measures.
     • Accountants' approach and imperfections.
   • Balance Sheet
     • What it measures.
     • Accountants' approach and imperfections.
   • Statement of Cash Flows
     • What it measures.
     • Accountants' approach and imperfections.

2. Financial Ratios

   • Useful for analysis when used judiciously.
   • Danger of overkill with too many ratios.

Target Audience

• Those who want to learn accounting for corporate finance without becoming accountants.
• Not suitable for accounting purists due to shortcuts and simplified approach.

Conclusion

• Aim to learn enough accounting to be effective in finance.
• Encouragement to join the class and best wishes.