ANALYSIS, USING AND UNDERSTANDING FINANCIAL STATEMENTS OF THE FIRM 2/6 2019-01-18
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 November. 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.
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
FCF – how to calculate? CC – cost of capital (cost of money), how to value?