About this Course
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Flexible deadlines

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Intermediate Level

Approx. 23 hours to complete

Suggested: 5 hours/week...

English

Subtitles: English
Learners taking this Course are
  • Accountants
  • Financial Analysts
  • Chief Executive Officers (CEOs)
  • Data Analysts
  • Project Managers

100% online

Start instantly and learn at your own schedule.

Flexible deadlines

Reset deadlines in accordance to your schedule.

Intermediate Level

Approx. 23 hours to complete

Suggested: 5 hours/week...

English

Subtitles: English

Syllabus - What you will learn from this course

Week
1
5 hours to complete

Why Finance Matters? Net Present Value. How to Calculate NPV

10 videos (Total 79 min), 6 readings, 2 quizzes
10 videos
1.1. Introduction – the idea of value6m
1.2. The game plan – a jumbo jet taking off5m
1.3. The valuation model – key assumptions11m
1.4. The opportunity cost of capital6m
1.5. Introducing PV and NPV12m
1.6. PV calculation shortcut (1) – perpetuities9m
1.7. PV calculation shortcut (2) – annuities6m
1.8. A fixed rate mortgage – an example of PV11m
1.9. The general NPV formula4m
6 readings
Konstantin Kontor10m
AIBEc. The American Institute of Business and Economics10m
Grading10m
Handouts – an important comment10m
1.1. Introduction: why finance matters1h
1.2. How to calculate present value10m
2 practice exercises
1 (Practice)20m
1 - The power of PV calculations1h
Week
2
4 hours to complete

Applications of NPV. Valuing Bonds and Stocks

10 videos (Total 68 min), 3 readings, 2 quizzes
10 videos
2.2. Valuing riskless debt6m
2.3. Bond cash flows and other parameters. Yield to maturity10m
2.4. Calculating spot rates8m
2.5. Forward rates – the idea and calculation8m
2.6. Valuing common stocks – the expected rate of return5m
2.7. The general stock valuation formula. The “tail”7m
2.8. The model of growth. PVGO5m
2.9. A constant growing company – an example10m
2.10. – What’s ahead?2m
3 readings
2.1. Application of NPV (1) – valuing riskless bonds1h
2.2. Application of NPV (2) – valuing common stocks10m
2.3. Analyzing growth10m
2 practice exercises
2 (Practice)20m
2 - PV of bonds and stocks – models and market values1h
Week
3
4 hours to complete

Making the Choice of Good Investment Projects. NPV and Other Criteria. Why Is NPV Better?

12 videos (Total 106 min), 2 readings, 2 quizzes
12 videos
3.2. Other criteria – pluses and minuses8m
3.3. Internal rate of return (IRR)8m
3.4. Problems with IRR – it’s not exactly like NPV!12m
3.5. Using NPV – what should we know3m
3.6. NPV and cash flows. Some accounting details11m
3.7. Sunk costs – opportunity costs – relevant costs10m
3.8. Depreciation – an overview relevant to cash flows5m
3.9. Discount rates – nominal and real. The role of inflation6m
3.10. Projects of different length. Equivalent annual cost (EAC)9m
3.11. EAC – an example11m
3.12. Conclusions and unanswered questions10m
2 readings
3.1. Equivalent annual cost (EAC)1h
3.2. Case – comparing two heating systems10m
2 practice exercises
3 (Practice)20m
3 - The problems of IRR and the power of EAC1h
Week
4
5 hours to complete

Risk and Return – From Basics to Reality

11 videos (Total 100 min), 4 readings, 2 quizzes
11 videos
4.2. The expected return and the standard deviation for a portfolio of securities. Some empirical evidence9m
4.3. Diversification. “Special” portfolios6m
4.4. Contribution to the portfolio risk. β6m
4.5. Efficient portfolios. The market portfolio’s efficiency7m
4.6. Capital asset pricing model (CAPM). Examples9m
4.7. The company cost of capital (CCC) rule10m
4.8. Applying CAPM – a no debt case4m
4.9. Applying CAPM – the general case. WACC13m
4.10. Steps in applying CAPM – an example15m
4.11. Conclusions. The roadmap to determining WACC. Some objections to using normal distributions7m
4 readings
4.1. Mathematics of risk – an overview1h
4.2. Risk and return (1) – the game plan and diversification10m
4.3. Risk and return (2) – market risk and asset pricing10m
4.4. Risk and return (3) – cost of capital10m
2 practice exercises
4 (Practice)20m
4 - Returns, betas, and the cost of capital1h

Instructor

Avatar

Konstantin Kontor

Director and Professor of Finance and Strategy
American Institute of Business and Economics (AIBEc)

About Moscow Institute of Physics and Technology

Московский физико-технический институт (Физтех) является одним из ведущих вузов страны и входит в основные рейтинги лучших университетов мира. Институт обладает не только богатой историей – основателями и профессорами института были Нобелевские лауреаты Пётр Капица, Лев Ландау и Николай Семенов – но и большой научно-исследовательской базой. Основой образования в МФТИ является уникальная «система Физтеха», сформулированная Петром Капицей: кропотливый отбор одаренных и склонных к творческой работе абитуриентов; участие в обучении ведущих научных работников; индивидуальный подход к отдельным студентам с целью развития их творческих задатков; воспитание с первых шагов в атмосфере технических исследований и конструктивного творчества с использованием потенциала лучших лабораторий страны. Среди выпускников МФТИ — нобелевские лауреаты Андрей Гейм и Константин Новоселов, основатель компании ABBYY Давид Ян, один из авторов архитектурных принципов построения вычислительных комплексов Борис Бабаян и др....

About American Institute of Business and Economics

The American Institute of Business and Economics (AIBEc) offers a wide variety of business courses in finance, accounting, marketing, strategy, HR, business law, economics, general management, business psychology, as well as course projects and the Field study. AIBEc provides for flexibility and customization of programs and schedules....

About the Understanding Modern Finance Specialization

This Specialization is designed for a wide audience of those interested in finance either professionally or just of curiosity, including managers of different levels specializing in finance, accounting, business planning, strategy, consulting, and project management, IT specialists engaged in the area of finance, fin-tech, big data, and valuation, etc. Through four courses and the final Project, you will cover the theory and practice of capital markets and financial institutions, corporate finance and project valuation, financial and managerial accounting as applied to finance, as well as the M&A market as the ultimate judge of financial efficiency and value creation. The Specialization will prepare you to understand and use the applications of financial ideas, concepts, models, strategies, and tools to build a successful career in finance and in business, as well as to take advantage of opportunities offered by financial markets....
Understanding Modern Finance

Frequently Asked Questions

  • Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.

  • When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.

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