Enroll Course: https://www.coursera.org/learn/finance-fundamentals
Are you looking to build a solid foundation in corporate finance, whether you’re new to the subject or need a refresher? The ‘Fundamentals of Finance’ course on Coursera, designed by Professor Jessica Wachter for Wharton MBA pre-term students, is an excellent choice. This comprehensive course breaks down complex financial concepts into digestible modules, making it accessible to a wide range of learners.
From the very beginning, Module 1 dives into the core concept of Net Present Value (NPV). You’ll learn not only how to calculate NPV but also understand why it’s a crucial tool for decision-making. The module clearly explains the difference between compound and simple interest, defines annuities and perpetuities, and analyzes APR vs. EAR. By the end of this section, you’ll have a firm grasp on the foundational elements that drive critical corporate financial decisions.
Module 2 shifts focus to Fixed Income Valuation, specifically exploring bonds and the yield curve. You’ll learn to identify zero-coupon bonds, calculate their returns, and differentiate between Yield to Maturity and Holding Period Returns. Understanding the yield curve becomes second nature, enabling you to accurately assess the opportunity cost of future cash flows and thus, better value your investments.
Moving on to Module 3, the course tackles Equity Valuation. Here, you’ll define equity, understand its distinction from fixed-income securities, and learn the standard approach to valuing equity through cash flows. The module demystifies valuation using multiples like the price-earnings ratio, showing how they all stem from the principle of valuing equity as a stream of cash flows. You’ll even get hands-on experience creating models for dividend growth.
Finally, Module 4 addresses a common point of confusion: NPV vs. Internal Rate of Return (IRR). Professor Wachter expertly compares these two metrics, debunks common IRR assumptions, and uses practical examples to illustrate when they agree or disagree. This module equips you to make informed decisions about accepting or rejecting projects based on these critical financial tools.
Overall, ‘Fundamentals of Finance’ is a highly recommended course for anyone seeking to enhance their financial literacy. Its clear explanations, structured syllabus, and expert instruction make it an invaluable resource for students, aspiring finance professionals, or business owners. The optional additional topics and resources further enrich the learning experience, providing a well-rounded understanding of corporate finance.
Enroll Course: https://www.coursera.org/learn/finance-fundamentals