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Fundamentals of Finance

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.

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What's inside

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.

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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

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Reviews summary

Solid foundation in corporate finance basics

According to learners, this course provides a solid and comprehensive foundation in corporate finance fundamentals. Many commend the clear explanations and structured approach to complex topics like NPV, fixed-income valuation, and equity valuation. Students appreciate Professor Wachter's ability to simplify challenging concepts, making them accessible for both beginners and those needing a refresher. While the course delivers strong theoretical grounding, some note that deeper application might require further study. Overall, it's considered an excellent starting point for understanding crucial financial decision-making for firms, though it requires dedication to absorb the material.

Demands active engagement for full comprehension.

"The course covers a lot of ground quickly, so staying focused is key to grasping everything."

"It's not a light course; be prepared to put in the time to truly understand the concepts."

"I found that consistent review and practice of the calculations were essential for success."

"You need to be attentive during lectures to follow the complex formulas and their derivations."

Excellent for theory, but some desire more practical application.

"The course is very strong on the theoretical underpinnings of finance, which I appreciated."

"I gained a deep understanding of why NPV works, but I wished for more real-world case studies."

"The hypothetical examples were good, but I would have liked more hands-on exercises or complex project simulations."

"It provides a solid academic perspective on finance, perfect for foundational understanding."

Catapults both new learners and those reviewing finance.

"As someone new to finance, I found the pace just right, not too overwhelming."

"It was a great refresher for me on some core concepts I hadn't touched since business school."

"Some topics felt a bit basic, but it was still a useful review of the fundamentals before diving deeper."

"The course managed to be accessible enough for novices while providing value for those with some prior knowledge."

Builds a robust base for corporate finance principles.

"This course provided me with a strong foundation, especially for understanding things like annuities and perpetuities."

"I feel much more confident in the basic principles of finance after completing this course."

"It's a perfect starting point for anyone looking to grasp corporate finance from the ground up."

"The modules covered exactly what I needed to refresh my understanding of core financial concepts."

Excellent explanations make complex finance topics accessible.

"The instructor breaks down complex finance concepts into easily digestible lessons."

"Professor Wachter is excellent; she explains everything with such clarity, even the most challenging parts."

"I really appreciated how the lectures simplified NPV and equity valuation for a complete beginner like me."

"The course structure and teaching method made the fundamentals of corporate finance very clear."

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.

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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.

Browse courses on Financial Statement Analysis

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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.

See salaries and explore the career path for Financial Analyst

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.

See salaries and explore the career path for Investment Banker

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.

See salaries and explore the career path for Portfolio Manager

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.

See salaries and explore the career path for Risk Manager

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.

See salaries and explore the career path for Corporate Finance Manager

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.

See salaries and explore the career path for Financial Advisor

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.

See salaries and explore the career path for Auditor

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.

See salaries and explore the career path for Tax Accountant

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.

See salaries and explore the career path for Budget Analyst

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.

See salaries and explore the career path for Credit Analyst

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.

See salaries and explore the career path for Financial Planner

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.

See salaries and explore the career path for Investment Analyst

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.

See salaries and explore the career path for Quantitative 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

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

Reading list

We've selected 13 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Fundamentals of Finance.

Corporate Finance, Global Edition

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Provides a comprehensive overview of corporate finance, covering topics such as capital budgeting, capital structure, and dividend policy. It valuable resource for students and professionals alike who want to learn more about corporate finance.

Corporate Finance, Global Edition

Paperback

$$$

Corporate Finance: The Core, Global Edition

Paperback

$$$

Fundamentals of Corporate Finance, Global Edition

Paperback

$$$

Corporate Finance plus MyFinanceLab with Pearson...

Paperback

$$$

Loose-Leaf for Principles of Corporate Finance

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Classic textbook on corporate finance. It provides a clear and concise introduction to the subject, covering all the essential topics. It good choice for students who are new to corporate finance.

Loose-Leaf for Principles of Corporate Finance

Paperback

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Loose-Leaf for Principles of Corporate Finance

Kindle Edition

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The Little Book of Valuation

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Practical guide to corporate finance. It covers all the essential topics, but it does so in a way that is accessible to non-finance professionals. It good choice for students who want to learn more about corporate finance without getting bogged down in the details.

The Little Book of Valuation

Paperback

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The Little Book of Valuation

Kindle Edition

Check price

Fundamentals of Financial Management

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Comprehensive textbook on financial management. It covers all the essential topics, but it does so in a way that is accessible to students and professionals alike. It good choice for students who want to learn more about financial management.

Fundamentals of Finance

What's inside

Syllabus

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Reviews summary

Solid foundation in corporate finance basics

Activities

Career center

Reading list

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