Course Summary
This course provides an introduction to the fundamental concepts of Finance. Topics include financial statements, time value of money, risk and return, valuation, and capital budgeting.Key Learning Points
- Understand the basics of financial statements and how to interpret them
- Learn about the time value of money and its importance in finance
- Gain knowledge about risk and return and how to measure them
- Get an introduction to valuation techniques and capital budgeting
- Explore the world of finance and its impact on individuals and organizations
Job Positions & Salaries of people who have taken this course might have
- USA: $60,000 - $80,000
- India: ₹5,00,000 - ₹10,00,000
- Spain: €25,000 - €35,000
- USA: $60,000 - $80,000
- India: ₹5,00,000 - ₹10,00,000
- Spain: €25,000 - €35,000
- USA: $100,000 - $150,000
- India: ₹10,00,000 - ₹25,00,000
- Spain: €45,000 - €60,000
- USA: $60,000 - $80,000
- India: ₹5,00,000 - ₹10,00,000
- Spain: €25,000 - €35,000
- USA: $100,000 - $150,000
- India: ₹10,00,000 - ₹25,00,000
- Spain: €45,000 - €60,000
- USA: $80,000 - $120,000
- India: ₹8,00,000 - ₹20,00,000
- Spain: €35,000 - €50,000
Related Topics for further study
Learning Outcomes
- Interpret financial statements and make informed decisions based on them
- Understand the importance of time value of money and apply it to financial problems
- Measure and manage risk and return in different financial scenarios
Prerequisites or good to have knowledge before taking this course
- Basic knowledge of algebra
- Familiarity with Excel
Course Difficulty Level
BeginnerCourse Format
- Self-paced
- Online
Similar Courses
- Corporate Finance Essentials
- Introduction to Financial Accounting
- Investment Management
Related Education Paths
Notable People in This Field
- Warren Buffett
- Suze Orman
- Robert Kiyosaki
Related Books
Description
In this course, you’ll learn the basic fundamentals of corporate finance. Based on the pre-term qualifying courses for Wharton MBA students, Professor Jessica Wachter has designed this course for learners who need a refresher in financial concepts, or for those who are learning about corporate finance for the first time. You’ll identify foundational concepts in corporate finance, such as NPV, Compound and Simple Interest, and Annuities versus Perpetuities. You’ll also learn how to apply the NPV framework to calculating fixed-income valuation and Equity, using hypothetical examples of corporate projects. By the end of this course, you’ll have honed your skills in calculating risk and returns to optimize investments, and be able to assess the right set of financial information to achieve better returns for your firm.
Outline
- Module 1 - Introduction and Net Present Value (NPV)
- Course Introduction (1:24)
- Present Value Concepts (7:39)
- NPV Rule (10:39)
- Separation Theorem (2:06)
- Simple vs. Compound Interest (7:56)
- Annuities and Perpetuities (12:40)
- Growing Delayed Annuities and Perpetuities (7:45)
- Compounding Within the Year and the Effective Annual Interest Rate (13:59)
- Summary of NPV Rule
- Topic 1 Lecture Slides
- Topic 1 Lecture Notes
- Summary of Computing Effective Annual Rates
- Topic 2 Lecture Slides
- Topic 2 Lecture Notes
- Module 1 Quiz
- Module 2 - Fixed Income Valuation
- Introduction to Fixed Income Valuation (4:53)
- Valuation of Pure Discount Bonds (6:06)
- Yield to Maturity vs. Holding Period Return (13:11)
- Prices and Returns on Coupon Bonds (17:17)
- Semi-Annual Bonds (6:27)
- The Yield Curve (16:50)
- Holding Period Return and Yield to Maturity for Zero-Coupon Bonds
- Calculating the Holding Period Return on a Coupon Bond
- Topic 3 Lecture Slides
- Topic 3 Lecture Notes
- Module 2 Quiz
- Module 3 - Equity Valuation
- Introduction Equity Valuation (9:50)
- Applying Infinite Horizon Formulas (4:06)
- Determining Dividend Growth (17:32)
- Summary of Equity Valuation Formulas
- Summary of NPVGO and the Constant Growth Model
- Topic 4 Lecture Slides
- Topic 4 Lecture Notes
- Module 3 Quiz
- Module 4 - NPV vs. Internal Rate of Return
- Definition of Internal Rate of Return (IRR) (11:18)
- Comparing NPV and IRR: Accept or Reject Decision (9:34)
- Comparing NPV and IRR: Exclusive Projects (13:15)
- Course Conclusion (0:36)
- Topic 5 Lecture Slides
- Topic 5 Lecture Notes
- Module 4 Quiz
- (Optional) Additional Course Topics and Resources
- Capital Budgeting in Practice
- Expected Returns and Risk
- Portfolio Analysis
- Capital Asset Pricing Model (CAPM)
- Market Efficiency
- Capital Structure
- Valuation and Capital Budgeting with Leverage
- Option Definitions and Strategies
- Option Valuation