Fundamentals of Finance from Coursera

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Syllabus

Module 1 - Introduction and Net Present Value (NPV)

This module was designed to give you foundational knowledge of corporate finance and the Net Present Value (NPV). You’ll identify the definition of both Present Value and NPV, why it works, and how to calculate the NPV. You’ll learn key concepts such as Separation Theorem, whether corporations should follow the same rules of NPV as individuals, and what are reasonable assumptions to make when calculating NPV. You’ll compare Compound versus Simple Interest, define important concepts such as Annuities and Perpetuities, and analyze Annual Percentage Rate (APR) and Effective Annual Interest Rate (EAR). By the end of this module, you’ll gain a better understanding of the fundamental concepts in corporate finance as well as broader knowledge regarding the factors that go into a firm’s most critical decision-making.

Module 2 - Fixed Income Valuation

In this module, you’ll examine fixed income valuation and delve deeper into the yield curve. Using the basic definition of bonds, you’ll be able to identify zero coupon bonds and calculate the return on those bonds. You’ll also discuss the differences between Yield to Maturity and Holding Period Returns, evaluate your investments, and be able to answer the question: “What does return on investment mean?” Through analyzing the Yield Curve, you’ll assess the opportunity cost of receiving money at various events in the future and accurately value investments. By the end of this module, you’ll be able to describe what a bond and zero coupon bond is, calculate the return on those bonds, and calculate a Yield Curve to better assess the value of your investments.

Module 3 - Equity Valuation

In this module, you’ll examine how to determine the value of stocks using present value methods. You’ll define what Equity is and develop an understanding of the important difference between fixed-income securities, such as bonds, and equity cash flows. You’ll discover the standard approach in valuing equity through its cash flow and how the principle of using multiples (such as price-earnings ratio) to value equity all comes from valuing equity as a stream of cash flows. By the end of this module, you’ll gain a better understanding of the theoretical basis behind applications of equity valuation and create models that determine dividend growth.

Module 4 - NPV vs. Internal Rate of Return

This module was designed to show you the difference between NPV and Internal Rate of Return (IRR). You’ll first explore both Internal Rate of Return and how it compares to the NPV, then debunk some of the common assumptions about IRR that may seem unrealistic when examined closely. Using hypothetical examples of projects, you’ll compare the values of NPV and IRR and what to do when they agree or disagree with each other. By the end of this module, you’ll gain a better understanding of the difference between NPV and IRR, plus be able to determine when to make the critical call on which value to accept or reject when making important decisions within your firm.

(Optional) Additional Course Topics and Resources

This module contains additional course topics related to the fundamentals of finance

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Taught by Jessica Wachter, who are recognized for their work in corporate finance

Develops NPV, Compound and Simple Interest, and Annuities versus Perpetuities, which are core skills in corporate finance

Suitable for learners who need a refresher in financial concepts or for those who are learning about corporate finance for the first time

Taught using hypothetical examples of corporate projects, which helps learners develop practical skills

Positions learners to assess the right set of financial information to achieve better returns for their firm

Assumes that corporations should follow the same rules of NPV as individuals, which may not always be the case

Reviews summary

Mathematical finance fundamentals

Learners say this course dives into the mathematical side of finance right away, assuming students have some familiarity with the terms and concepts. According to students, the notes and materials are really useful, but the quizzes are frustrating because the questions can be confusing and the grading seems inconsistent. They also mention that the instructor is knowledgeable, but her handwriting is difficult to follow and she speaks slowly.

The instructor provides clear and concise explanations of the concepts.

"The instructor provides clear and concise explanations of the concepts."

The assignments are engaging and help to reinforce the concepts.

"The assignments are engaging and help to reinforce the concepts."

This course is challenging, but it provides a comprehensive overview of finance fundamentals. The instructor is knowledgeable and the notes are helpful.

"This course is challenging, but it provides a comprehensive overview of finance fundamentals."

"The instructor is knowledgeable and the notes are helpful."

The course lacks real-world examples to help illustrate the concepts.

"The course lacks real-world examples to help illustrate the concepts."

The exams are difficult and require a strong understanding of the material.

"The exams are difficult and require a strong understanding of the material."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Fundamentals of Finance with these activities:

Create a glossary of corporate finance terms

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Improve your understanding of corporate finance terminology by creating a glossary of key terms and definitions.

Browse courses on Corporate Finance

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Identify the key terms covered in the course.
Define the terms and write brief explanations.
Organize the terms into a glossary.

Review Interest Rate Concepts

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Refresh your understanding of interest rate concepts to better grasp their role in corporate finance.

Browse courses on Interest Rates

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Review the definitions of simple and compound interest.
Calculate interest rates for different scenarios.
Analyze the impact of interest rates on investment decisions.

Review NPV Calculations

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Familiarize yourself with the concepts of Net Present Value (NPV) and how to calculate it to better understand the course material.

Browse courses on Net Present Value

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Revisit the definition of NPV.
Practice calculating NPV for simple examples.
Analyze the factors that affect NPV.

Five other activities

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Attend a Finance Industry Meetup

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Connect with professionals in the finance industry to gain insights and expand your knowledge.

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Find a relevant finance industry meetup in your area.
Attend the meetup and introduce yourself to others.
Participate in discussions and ask questions.

Practice NPV calculations

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Reinforce your understanding of NPV calculations by solving a variety of practice problems.

Browse courses on Net Present Value

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Find a set of practice problems online or in a textbook.
Work through the problems, step-by-step.
Check your answers against the provided solutions.

Watch tutorials on Fixed Income Valuation

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Enhance your understanding of fixed income valuation by exploring online tutorials that explain the concepts and techniques.

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Find reputable online tutorials on fixed income valuation.
Watch the tutorials and take notes on the key concepts.
Review the tutorials and reinforce your learning.

Analyze a company's financial statements

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Apply your knowledge of corporate finance by analyzing the financial statements of a real-world company.

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Choose a company to analyze.
Gather the company's financial statements.
Analyze the financial statements using the concepts covered in the course.
Write a report summarizing your findings.

Create a presentation on Equity Valuation

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Develop a deeper understanding of equity valuation by creating a presentation that explains the concepts and methods involved.

Browse courses on Equity Valuation

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Research different methods of equity valuation.
Choose a specific company or industry to focus on.
Apply the valuation methods to your chosen company or industry.
Create a presentation that summarizes your findings.

Career center

Learners who complete Fundamentals of Finance will develop knowledge and skills that may be useful to these careers:

Financial Analyst

Financial Analysts build financial models and make quantitative assessments of businesses, which can include advising on mergers and acquisitions. This course in Fundamentals of Finance will help build a foundation for your work in financial analysis, helping you develop a solid understanding of the principles underlying corporate financial decisions.

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Quantitative Analyst

Quantitative Analysts use mathematical and statistical models to analyze financial data. This course in Fundamentals of Finance will help you develop the skills you need to use mathematical and statistical models to analyze financial data, including how to calculate risk and return and how to use NPV to assess the value of investments.

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Investment Banker

Investment Bankers advise corporations and governments on a wide range of financial transactions, such as mergers and acquisitions, and public offerings. A knowledge of the fundamentals of finance, as taught in this course, is essential for a career as an Investment Banker.

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Portfolio Manager

Portfolio Managers are financial professionals who make investment decisions on behalf of clients. This course in Fundamentals of Finance will help you develop the skills you need to make sound investment decisions, including how to calculate risk and returns and how to use NPV to assess the value of investments.

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Risk Manager

Risk Managers identify, assess, and mitigate financial risks for organizations. This course in Fundamentals of Finance will help you develop the skills you need to identify and manage financial risks, including how to calculate risk and return and how to use NPV to assess the value of investments.

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Financial Planner

Financial Planners help individuals and families plan for their financial future. This course in Fundamentals of Finance will help you develop the skills you need to provide sound financial planning advice to clients, including how to calculate risk and return and how to use NPV to assess the value of investments.

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Credit Analyst

Credit Analysts assess the creditworthiness of borrowers. This course in Fundamentals of Finance will help you develop the skills you need to assess the creditworthiness of borrowers, including how to calculate risk and return and how to use NPV to assess the value of investments.

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Auditor

Auditors examine and assess the financial records of companies to ensure that they are accurate and compliant with regulations. This course in Fundamentals of Finance will help you develop the skills you need to conduct financial audits, including how to calculate risk and return and how to use NPV to assess the value of investments.

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Tax Accountant

Tax Accountants prepare and file tax returns for individuals and businesses. This course in Fundamentals of Finance will help you develop the skills you need to prepare and file tax returns, including how to calculate risk and return and how to use NPV to assess the value of investments.

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Corporate Finance Manager

Corporate Finance Managers oversee the financial operations of corporations, including budgeting, capital raising, and financial planning. This course in Fundamentals of Finance will help you develop the skills you need to manage the financial operations of a corporation, including how to calculate risk and return and how to use NPV to assess the value of investments.

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Budget Analyst

Budget Analysts develop and manage budgets for organizations. This course in Fundamentals of Finance will help you develop the skills you need to develop and manage budgets, including how to calculate risk and return and how to use NPV to assess the value of investments.

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Financial Advisor

Financial Advisors help individuals and families manage their finances, including retirement planning, investment management, and estate planning. This course in Fundamentals of Finance will help you develop the skills you need to provide sound financial advice to clients, including how to calculate risk and return and how to use NPV to assess the value of investments.

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Investment Analyst

Investment Analysts research and make recommendations on investments. This course in Fundamentals of Finance will help you develop the skills you need to research and make recommendations on investments, including how to calculate risk and return and how to use NPV to assess the value of investments.

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Securities Analyst

Securities Analysts research and make recommendations on securities, such as stocks and bonds. This course in Fundamentals of Finance will help you develop the skills you need to research and make recommendations on securities, including how to calculate risk and return and how to use NPV to assess the value of investments.

See salaries and explore the career path for Securities Analyst

Risk Management Analyst

Risk Management Analysts identify, assess, and mitigate financial risks for organizations. This course in Fundamentals of Finance will help you develop the skills you need to identify, assess, and mitigate financial risks for organizations, including how to calculate risk and return and how to use NPV to assess the value of investments.

See salaries and explore the career path for Risk Management Analyst