1. ANALYSIS, USING AND UNDERSTANDING FINANCIAL STATEMENTS OF THE FIRM 2/6

2. ANALYSIS, USING AND UNDERSTANDING FINANCIAL STATEMENTS OF THE FIRM
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5 lectures + 1 exam (individual homework sent via + 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.

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

4. FCF – how to calculate?
CC – cost of capital (cost of money), how to value?