Business Analysis and Valuation Course unit title Business Analysis and Valuation Course unit code AKK610 Type of course unit (compulsory, optional) Optional Level of course unit (according to EQF: first cycle Bachelor, second cycle Master) Second Cycle Master Year of study when the course unit is delivered (if applicable) 2021–2022 Semester/trimester when the course unit is delivered 3rd semester Number of ECTS credits allocated 4,8 ECTS Name of lecturer(s) Dr. Wiwiek Dianawati, MSi, Ak. Prof. Dr. Hj Sri Maemunah Soeharto, SE Nartyan Adhana, SE., MBA. Learning outcomes of the course unit Students are able to understand the framework of business analysis and valuation using financial reports and business strategy analysis Students are able to understand and implement accounting and financial analysis Students are able to understand and implement prospective analysis consisting of forecasts, theories and concepts of valuation, as well as their implementation Students are able to understand and identify the capital market, financial information, pricing on assets, and financial statement information Students are able to understand and analyze decisions to lend, credit analysis, and distress prediction Students are able to understand corporate restructuring, financial information, communication and organizational management Mode of delivery (face-to-face, distance learning) Face-To-Face and Distance Learning (using AULA UNAIR) Prerequisites and co-requisites (if applicable) - Course content The role of financial reporting in capital market The demand and supply for financial statement information From business activities to financial statement From financial statement to business analysis Industry analysis Degree of actual and potential competition Bargaining power in input and output markets The power of supply and buyers Competitive strategy analysis Corporate strategy analysis Institutional framework for financial reporting Accrual accounting Delegation of reporting to management Factors influencing accounting quality Steps in performing accounting analysis Value of accounting data and accounting analysis Recasting financial statement Overstated and understated assets Understated liabilities Equity distortion Ratio analysis Decomposing profitability Assessing operating management Evaluating investment management Evaluating financial management Assessing sustainable growth rate Cash flow analysis Overall structure of forecast Practical framework of forecast Performance behavior Sales growth behavior Earnings behavior Relationship of forecasting to other analysis Making forecasts Sensitivity analysis Defining value for shareholder Discounted dividends valuation models Discounted abnormal earnings valuation models Valuation using price multiples Shortcut forms of earnings based valuation Discounted cash flow model Comparing valuation methods Computing a discount rate Detailed forecasts of performance Terminal values Computing assets and equity values Some practical issues in valuation Investor objective and investment vehicle Equity security analysis and market efficiency Active and passive management- investment approach Capital market reaction to firm oriented announcements Association between security returns and account earning Market efficiency anomalies Equilibrium theories of equity security expected returns (CAPM, APT and linkage between CAPM and APT) Equilibrium theory of option pricing Economic determinants of beta and variance Estimation of beta and variance Information source for loan decisions Descriptive analysis of existing loans decision Quantitative approach to loan decision Existing loan decision and accounting alternatives Rating of debt securities Market for credit Credit analysis process in private debt markets Financial statement analysis and public debt Prediction of distress and turnaround Explaining corporate restructuring behavior Source of value in corporate restructuring Information source about firm value Motivation for merger and acquisition Acquisition pricing Acquisition financing and form of payment Acquisition outcome Governance overview Management communication with investor Communication through financial reporting Communication through financial policies Alternate forms of investor communication Recommended or required reading and other learning resources/tools Palepu dan Healy, 2013. Business Analysis and Valuation, 5th edition, South-Western College Publishing. (code : PH) Subramanyan, 2014. Financial Statement Analysis, 11th edition, Mc Graw Hill (code: SUB) Ellis J. Williams, David, 1993. Corporate Strategy and Financial Analysis, Pearson Education Limited. Foster, George, 1986. Financial Statement Analysis, 2nd edition, Prentice Hall, New Jersey. (code : GF) Planned learning activities and teaching methods Lectures Discussion Individual assignments Language of instruction Bahasa Indonesia Assessment methods and criteria Midterms 40%, Finals 60%