ANALYSIS, USING AND UNDERSTANDING FINANCIAL STATEMENTS OF THE FIRM [AUFSF2010]

10.04.23

ANALYSIS, USING AND

UNDERSTANDING FINANCIAL

STATEMENTS OF THE FIRM

ANALYSIS, USING AND UNDERSTANDING FINANCIAL STATEMENTS OF THE FIRM [AUFSF2010]2

ANALYSIS, USING AND UNDERSTANDING FINANCIAL STATEMENTS OF THE FIRM

E-mail: GRZEGORZ.MICHALSKI@UE.WROC.PL

www: HTTP://MICHALSKIG.UE.WROC.PL/

Mobile: +48503452860

5 lectures + 1 exam (individual homework sent via email + test)

Next lecture: 6th October.

Michalski G., Prediction cooperator future condition using financial statements (In Polish: Ocena kontrahenta na podstawie sprawozdań finansowych), ODDK, Gdańsk, 2008.

D.R.Harrington, B.D. Wilson, Corporate Financial Analysis, Irwin.

ANALYSIS, USING AND UNDERSTANDING FINANCIAL STATEMENTS OF THE FIRM [AUFSF2010]3

Basic financial aim of the firm

Firm value maximization:

Where: FCFn = free cash flows,

CC = cost of capital financing the firm (WACC)

n = period in which FCFn will be generated

n

tt

tp

CC

FCFV

1 1

ANALYSIS, USING AND UNDERSTANDING FINANCIAL STATEMENTS OF THE FIRM [AUFSF2010]

ANALYSIS, USING AND UNDERSTANDING FINANCIAL STATEMENTS OF THE FIRM [AUFSF2010]

ANALYSIS, USING AND UNDERSTANDING FINANCIAL STATEMENTS OF THE FIRM [AUFSF2010]