Course overview The focus of this course is on financial theory and empirical evidence that are useful for investment decisions. The topics include: Financial theory: This include portfolio theory, CAPM, APT, discount factor model, they are important for decision-making in investments;

1. The following financial statement information is known about five separate proprietorships: Company Company Company Company Company A B C D E December 31, 2001 Assets

Role of financial management Career opportunities Forms of business organization Goals of the corporation Issues of the new millenium Agency relationships

Financial Reporting Environment Regulators Industry Alternative Information Practices Sources Economy and Industry Information

Prelude to Comprehensive Analysis Steps in Analyzing Financial Statements Explicitly define the analysis objectives Formulate specific questions and criteria consistent with the Macintosh PICT analysis objectives image format is not supported Identify the most effective and efficient tools of analysis

Analyzing Profitability Focus of Profitability Analysis Profitability analysis is key part of financial statement analysis All financial statements are pertinent to profitability analysis Emphasis of profitability analysis is on the income statement

Financial Analysis of Timber Investments 1. MODERN FINANCIALANALYSIS OF TIMBER INVESTMENTS 2. EVOLUTION OF TIMBERLAND AS AN ASSET CLASS 3. CONCLUSION

Outlines A General View of Financial statements Income statement Balance sheet Statement of owners'equity’ Simple Illustration

2.1 货币市场 2.2 债券市场 2.3 权益证券 2.4 股票和债券市场指数 2.5 衍生品市场

information needs. Questions will be raised as to examples of external users and internal users and their different information needs. Then differences of financial accounting and managerial accounting will be discussed. Financial accounting is the information accumulation, processing, and communication system designed to satisfy the investment and credit decision-making information