This course provides a brief introduction to the fundamentals of finance, emphasizing their application to a wide variety of real-world situations spanning personal finance, corporate decision-making, and financial intermediation. Key concepts and applications include: time value of money, risk-return tradeoff, cost of capital, interest rates, retirement savings, mortgage financing, auto leasing, capital budgeting, asset valuation, discounted cash flow (DCF) analysis, net present value, internal rate of return, hurdle rate, payback period.
PART OF WHARTON’S BUSINESS FOUNDATIONS SPECIALIZATION
See Geoffrey Garrett, Dean of the Wharton School, talk about the Specialization here.
This course provides a framework, concepts, and tools for analyzing financial decisions based on fundamental principles of modern financial theory. You’ll learn the language and key components of corporate finance and investments including calculating present values, the valuation of bonds and stocks, the NPV rule, measuring risk, capital budgeting and the capital asset pricing model. At the end of this course, you’ll be able to read, understand, and explain corporate financial management and investment decisions.
Complete this course as part of Wharton's Business Foundations Specialization, and you'll have the opportunity to take the Capstone Project and prepare a strategic analysis and proposed solution to a real business challenge from Wharton-governed companies like Shazam and SnapDeal or to a challenge faced by your own company or organization. Wharton-trained staff will evaluate the top submissions, and leadership teams at Shazam and SnapDeal will review the highest scoring projects prepared for their companies.
Watch this video to learn more about the Wharton Foundation Series on Coursera:
For more information about courses offered online at Wharton, please go to online.wharton.upenn.edu
Topic 1: Time Value of Money
Topic 2: Interest Rates
Topic 3: Discounted Cash Flow Analysis (DCF)
Topic 4: Return on Investment
A thorough understanding of basic mathematical concepts is suggested.
The course materials consist of short videos containing the lectures for the course, and problem sets to be completed at the end of many videos.
Each topic is largely self-contained but the lectures are best viewed sequentially as many lectures build off of preceding ones. The purpose of each lecture is to introduce a concept and illustrate its usage. Mastery of the concept comes from working the problems.
I want to emphasize this last point. The full value of the course can only be realized through a combination of viewing the videos and working the problems at the end of the videos. The problems have been designed to mimic, as much as possible, financial problems that you will confront in your personal and professional life. While I provide detailed solutions to the problems, I strongly encourage you to first work the problems without looking at the solution. Even if your answer is incorrect or you are unable to even come to a solution, there is value to just thinking about how to solve the problem.
There will be an exam at the conclusion of the course. The format will be somewhat similar to that of the problem sets, which offer the best form of preparation.
I took one of these courses in an earlier version. Will I get credit for it in this Specialization?