This course is an introduction to the notion of risk, its relation to return, and the valuation of projects and companies. This is a capstone course to help you value projects and companies by applying your understanding of time value of money (TVM) and cash flows developed in the first three courses of this specialization. This course is part of a specialization titled “Foundational Finance for Strategic Decision Making” and is helpful if you are interested in applying to an MBA degree program or learning the foundations of finance to be more effective in your career. The pedagogy of the course is applied and problem-based with assignments covering every part of the course that each contain multiple problems that, by design, are introductory and simpler than the more real-world applications you will confront in the real world and more advanced courses. The assignments are all designed by the faculty lead and machine graded.
3.13 Mega Example: Question 5 & Analysis
Skills You'll Learn
Calculating the return of a project, Calculating the risk of a project, Valuing Projects, Valuing Companies
Reviews
This is the best course I have done in a while, I want to learn more from this professor. This has been better than anything there on Netflix
Mega example in week 3 is the highlight of the entire course it covered every aspect of the course and explained properly.
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.
Taught By
Gautam Kaul
Professor of Finance & Fred M. Taylor Professor of Business Administration
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