Business Analysis And Valuation

Financial Statements are the basis for a wide range of business analysis. There is strong demand among business students for course materials that provide a framework for using financial statement data in a variety of business analysis and valuation contexts. Business Analysis and Valuation Using Financial Statements, 2nd Edition by Palepu/Healy/Bernard provides that framework.

Benefits:
• NEW! REVENUE RECOGNITION. New coverage detailing the challenges in revenue recognition such as how to account for payment in advance, multi-period contracts, and bundled services or products has been added. Discussion of the credit-worthiness of customers and dissatisfaction about service performance has also been added.
• APPLICATIONS INCLUDED: Applications of financial statement analysis include (1) Credit analysis (2) Security analysis (3) Analysis of mergers, acquisitions, and other corporate restructuring (4) Analysis of financing policies: capital structure and dividend policy (5) Analysis of management communication strategies. Where applicable, relevant institutional details and results of academic research are also incorporated.
• TEXTUAL SUPPORT. Cases are supported by textual material that will explain the techniques to be used, the theory and evidence behind them, and the detailed institutional context in which the practical applications are conducted to assure that students develop strong practical skills using real world applications.
• NEW! EXPENSE RECOGNITION AND ALLOCATION. Coverage of depreciation, amortization, asset cost allocation, current revenue cost rises, and asset devaluation as they effect the financial statements is now included.
• NEW! LIABILITIES AND EQUITY. Discussion of when to recognize changes in the value of liabilities, contingencies for obligations, and accounting for obligations (i.e. lease contracts, warranties) is found. Equity is covered in detail as well.
• NEW! NEW CASES. Approximately 12 new cases have been added to the book. Cases are supported by textual material that will explain the techniques to be used, the theory and evidence behind them, and the detailed institutional context in which the practical applications are conducted to assure that students develop strong practical skills using real world applications.
• NEW! ENTITY ISSUES. Explanation of how to measure a multi-business unit firm's value is given in detail.
• NEW! END OF CHAPTER MATERIAL. Quality 'Discussion Questions' (about 10 per chapter) have been added to the book to give students the opportunity to apply the concepts learned in the text without having to assign one of the may cases.
• TEACHING MANUAL: For students who need more help working a case, the Teaching Manual includes a set of detailed questions that can be handed out before class. For students requiring less structure, there are recommended questions at the end of each case.
• DECISION CONTEXT: Each case presents business analysis and valuation issues in specific decision contexts, which makes the material more interesting and exciting for students.
• FOUR TYPES OF FINANCIAL STATEMENT ANALYSIS: Coverage includes: (1) Business strategy analysis for developing an understanding of a firm's competitive strategy (2) Accounting analysis for representing the firm's business economics and strategy in its financial statements, and for developing adjusted accounting measures of performance, (3) Financial analysis for ratio analysis and cash flow measures of operating, and (4) Prospective analysis.