Business Analysis and Valuation

Analysis of Corporate Financial Statements: Income Statement and Balance Sheet. Procedure, Types of Financial Analysis.
Comparative, Common Size and Trend Analysis:
Comparative Financial Statement- Comparative Balance Sheet, Comparative P&L Account.
Common Size Financial Statement- Common size Balance sheet, Common size P&L Account. Trend Analysis- Trend Percentages, Trend Ratios.

Financial Interpretation Through Ratios Analysis: Liquidity, Solvency, Turnover, Profitability and Investment analysis ratios
Cash flow Statement: Meaning, Scope, major items affecting the cash flows and Preparation of Cash Flow Statement..

Time Value of Money: Concepts, Future value or compounding, Present value or Discounting.
Cost of Capital: Explicit and Implicit costs; Measurement of cost of capital; Cost of debt; Cost of perpetual debt; Cost of Equity Share; Cost of Preference Share; Cost of Retained Earning; Computation of over-all cost of capital based on Book value and Market weights.

Valuation of Goodwill: Concept and Factors affecting Goodwill, Basis of Goodwill Valuation, Methods of valuation of Goodwill- Years’ Purchase Method, Capitalization method, Annuity Method
Valuation of Shares: Needs, Methods of Valuation – Net asset Method, Yield Valuation method, Fair Value of Shares.

Concept, Types of Mergers, Financial consideration in merger, Benefits of Merger & acquisition, Disadvantages of Merger & acquisition, procedure of Merger & acquisition, Essentials for successful Merger & acquisition.