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Please make sure you read the Announcement in NYU Brightspace for this course and read the details about highly recommended prework.

Overview

MBA ACCT-GB-3304 Specializations:

Various management disciplines teach you how to analyze and forecast parts of a business. Building on this foundation, this course will help you weave your forecasts into coherent spreadsheet-based pro-forma financials. Modeling financial statements provides a reality check on the forecasts, enables “what if” analysis, provides an integrated view of the business, and is a key step in valuation and credit risk analysis.

The course is indispensable to careers in investment banking, private equity, buy-side or sell-side research, credit research, corporate finance, valuation, project finance, and due diligence advisory. It gives a competitive edge during interviews, internships, and jobs. First-year and second-year students can both take this course.

Help and Office

Prerequisites

Administrative Issues

Materials and Course Design

Almaris Assignments

Attendance and penalty for missing classes

Requiring attendance is necessary for several reasons. First, many of you misjudge how much you miss out on learning when you miss classes. It is difficult to catch up once you miss a class. Watching a video (if available) is inadequate as it is cognitively far inferior to paying attention in a classroom. Second, less than 25% of the students who miss a class watch the video (if available). As a result, they are lost in subsequent classes, which provides wrong signals to me as an instructor. Third, there is diminished classroom interaction and poorer quality of class discussion if you are absent. Fourth, you do not get enough feedback if you do not work through the questions I pose in class. Fifth, I lose the feedback on how much you are learning with fewer questions in class.

The policy below will be in effect only after the add/drop period.

Without mandatory attendance, as much as half the class can be absent. Therefore, though I dislike doing this, I penalize absences. I understand that there are valid reasons for absences. If you anticipate being absent for good reasons, please email me well in advance. You can enter "Excused" on the attendance sheet described below to avoid the penalty if I approve. If you miss a class due to emergencies and cannot tell me in advance, do not panic. Take care of the emergency first and then email me. I will permit you to change the "absent" to "excused." But, if you miss a class without a valid reason, there is a penalty, as shown below.

For sections meeting in 150-190 minute sessions, you would lose one grade (A to A-, A- to B+, B+ to B, B to B-, and so on) for EVERY missed session unless you were explicitly excused via email. Thus, if you miss two class sessions, you would lose two grades, and so on.

For sections meeting in 75-80 minute sessions, you would lose one grade (A to A-, A- to B+, B+ to B, B to B-, and so on) for EVERY TWO missed sessions unless you were explicitly excused via email. Thus, if you miss four class sessions, you would lose two grades, and so on.

Please sit in the same seat in every class and display your name tags. After entering the class, please mark yourself present in the first 20 minutes in the OneDrive sheet (link posted on OneDrive after the add/drop period is over.) You will be marked absent if you are more than 20 minutes late unless it is because of factors beyond your control (traffic, subway, interviews running late). You will also be marked absent if you leave the class early unless you have my permission or get it afterward. You will get an F in the course if you are caught cheating on the attendance sheet.

Exams and Grading

Important computer tips for the final

Schedule

Module Topic
1

Deriving cash flows, enterprise or unlevered cash flows

2

Building blocks of models; Linking cash flow forecasts to value

3

Designing models, Customers; Suppliers, employees, and other expenses

4

Multiperiod models: Long-term accruals and deferrals

5

Excel tools for scenario analysis; Capacity: PP&E and depreciation

6

Modeling taxes

7

Modeling financing

8

Time value of money and bonds

9

Integrative analysis

10

Which cash flows should one discount

11

Prioritizing assumptions in models; sensitivity analysis