About this Course
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Flexible deadlines

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Beginner Level

An exposure to algebra and statistics and an introductory understanding of time value of money (TVM)

Approx. 12 hours to complete

Suggested: The workload for this course will vary between 3-5 hours a week....

English

Subtitles: English

What you will learn

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    To enable you to understand and calculate the risk and return of a project

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    Valuing projects and companies

Skills you will gain

Calculating the return of a projectCalculating the risk of a projectValuing ProjectsValuing Companies

100% online

Start instantly and learn at your own schedule.

Flexible deadlines

Reset deadlines in accordance to your schedule.

Beginner Level

An exposure to algebra and statistics and an introductory understanding of time value of money (TVM)

Approx. 12 hours to complete

Suggested: The workload for this course will vary between 3-5 hours a week....

English

Subtitles: English

Syllabus - What you will learn from this course

Week
1
9 hours to complete

week 1: What is Risk?

This course deals with the determination of the discount rate we have used in all previous courses to value projects, bonds and stocks. Combined with cash flows, the discount rate captures all aspects of financial valuation that is the main goal of this specialization and course. In the first week, we will try and understand risk as perceived by humans and develop a measure that is powerful and intuitive. Since this topic requires both art and science of finance, we will have three assignments in this course....
7 videos (Total 85 min), 3 readings, 2 quizzes
7 videos
1.1 Why Risk & Return?12m
1.2 Valuation & Risk Estimation11m
1.3 What is Risk?13m
1.4 Statistics: Mean & Variance18m
1.5 Statistics: Covariance & Correlation13m
1.6 Statistics: Regression13m
3 readings
Specialization Syllabus45m
Course 4-Syllabus30m
Note-Review of Statisticss
2 practice exercises
Practice Assignment 1s
Assignment 1s
Week
2
5 hours to complete

Week 2: Diversification, Risk & Return

During this second week of the course, we will introduce one of the most powerful and intuitive model of modern finance - the Capital Asset Pricing Model (CAPM) - that forms the basis of our understanding of the relation between risk and return....
7 videos (Total 134 min), 1 reading, 2 quizzes
7 videos
2.2 Diversification: 2 Assets24m
2.3 Diversification: Two Assets Intuition10m
2.4 Diversification: Bottom Line20m
2.5 Measure of Risk: Beta17m
2.6 Risk & Return: CAPM18m
2.7 Risk & Return: Market Analysis16m
1 reading
Note-Review of Statisticss
2 practice exercises
Practice Assignment 2s
Assignment 2s
Week
3
2 hours to complete

week 3: Leverage, WACC & Valuation

During this week, we will understand the discount rate in a world where a company has both equity ad debt. This will require us to evaluate the impact of debt (also known as leverage) on the equity holders of the firm. We will develop the weighted average cost of capital. Finally, we will put together cash flows and WACC and get our first exposure to valuation with a full-blown application....
16 videos (Total 99 min)
16 videos
3.2 Leverage & Risk14m
3.3 Leverage & WACC9m
3.4 Valuation : Mega Example Set Up15m
3.5 Mega Example: Question 12m
3.6 Mega Example: Question 1 Analysis5m
3.7 Mega Example: Question 254s
3.8 Mega Example: Question 2 Analysis5m
3.9 Mega Example: Question 31m
3.10 Mega Example: Question 3 Analysis4m
3.11 Mega Example: Question 41m
3.12 Mega Example: Question 4 Analysis7m
3.13 Mega Example: Question 5 & Analysis3m
3.14 Mega Example: Question 61m
3.15 Mega Example: Question 6 Analysis4m
3.16 Mega Example: Question 7 & Analysis6m
Week
4
6 hours to complete

Week 4: Putting it All Together!

This is the last week of this course and the specialization. We therefore wrap things up by providing some real world twists and a final assignment that evaluates your ability to put everything together....
1 video (Total 15 min), 2 quizzes
2 practice exercises
Practice Final Assignments
Final Assignments

Instructor

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Gautam Kaul

Professor of Finance & Fred M. Taylor Professor of Business Administration
Ross School of Business

About University of Michigan

The mission of the University of Michigan is to serve the people of Michigan and the world through preeminence in creating, communicating, preserving and applying knowledge, art, and academic values, and in developing leaders and citizens who will challenge the present and enrich the future....

About the Foundational Finance for Strategic Decision Making Specialization

Understand and apply the foundational principles of finance to most business problems and strategies. This integrated set of courses focuses on both the theory and practice of financial decision-making through an applied lens. Ideal for learners seeking to advance their career and/or pursue a business degree, such as a Master of Business Administration (MBA) degree, a great understanding of foundational concepts in finance will help you to understand the principles of personal finance and investing. After successful completion of the four-course program, you will be equipped to make thoughtful decisions based on a framework built using multiple advances in modern financial theory....
Foundational Finance for Strategic Decision Making

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.

More questions? Visit the Learner Help Center.