Valuation and Financial Statements
B8110/B7110 (Yee's Version)

Why do earnings announcements move markets? Why do analysts forecast earnings and not dividends? How much should you pay for earnings growth? B8110/B7110 is an accounting-based valuation course that answers these questions and more! It introduces you to modern valuation methods and M&A appraisal analysis. It does NOT overlap with my other course, Earnings Quality (B8100).

• overview of B7110 and B8110
• broad course outline <-- applies to both B7110 and B8110
  
  • detailed B7110 course syllabus <-- executive MBA students
  • detailed B8110 course syllabus <-- MBA students

• Spring 2003 midterm exam
• Spring 2003 final exam ( eBay financials for final exam)

• Download the 6 homework assignments, spreadsheets, and notes from the Course Website:

  http://www.gsb.columbia.edu/faculty/kyee/indb8110.html

• Grading
  I expect that final grade distribution will approximate 40% H, 40-60% HP and 0-20% P (or lower, where compelling). Occasionally, I will assign an even higher grade distribution based on superior class performance.
• Book Report
  Students are asked to submit one book report for homework credit. Students may also do a second (optional) book report for extra homework credit (to replace missed or points lost on regular homework assignments). The instructions contain a set of pre-approved books.
• Other supplementary course materials and announcements are on BOLD.

  Note to students from outside the GSB

  B8110 is not a substitute for an strong accounting course. I urge *non*-MBA students who have not recently taken an MBA-level accounting course to take or audit Earnings Quality (B8100) concurrently. Valuation relies on knowledge MBA students learn in B6013 (core financial accounting). Students who come in completely unfamiliar with accounting concepts like "deferred tax assets", "comprehensive income," "purchase price adjustments," and "minority interest" should plan to do significant extra self-study with an accounting text. In the past, GSB students have, on average, completed this course with excellent grades whereas a few students from outside the GSB have had difficulties with the level of financial accounting assumed.