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This course studies the core financial decisions that companies make with a particular emphasis on equity and firm valuation. We reformulate financial statements into their operating and financial components, for the purpose of valuation. We perform financial statement analysis based on the reformulated income, balance sheet, and cash flow statements to provide a better understanding of the underlying sources of firm profitability and firm growth. We apply the accounting-based equity valuation technique and other valuation technologies to value companies. Students learn how to estimate a firmís weighted average cost of capital. To better understand the financing decisions made by firms and the observed capital structures and shareholder payouts of firms, the course presents a detailed analysis of capital structure and dividend payout theories.