Learning Outcome

Financial Reporting and Analysis

INCOME STATEMENT RATIOS AND COMMON-SIZE ANALYSIS

Financial Reporting and Analysis 2

INCOME STATEMENT RATIOS AND COMMON-SIZE ANALYSES

Derivatives

Explain the pricing of futures contracts at inception.

Equity

Describe income statement ratios (e.g., gross profit margin, net profit margin, operating profit margin, and pretax margin) and evaluate a company using common-size income statements.

Equity

Describe income statement ratios

Fixed Income

Explain the time value of money and its application in fixed income and equity valuation.

Fixed Income

Explain the concept of cash flow additivity.