In this module, you will examine how financial markets support price discovery, capital allocation, and the flow of information across the economy. You will learn the differences between primary and secondary markets, including how new securities are issued and traded, and you will explore the roles of key financial institutions such as commercial banks, investment banks, institutional investors, and rating agencies. The module also introduces the major trade-offs between debt and equity financing in terms of cost, control, risk, and WACC (Weighted Average Cost of Capital), along with the main features of debt and equity instruments, including the IPO (Initial Public Offering) and seasoned equity offering processes. Finally, you will evaluate strategic financing considerations such as signaling effects, market timing, and long-term capital planning.

In this module, you will explore the core financial statements and the analytical tools used to evaluate a firm’s performance and financial health. Students will learn the purpose and structure of the balance sheet, income statement, and statement of cash flows, and how to reconcile net income to operating cash flow using the indirect method. The module also develops the ability to calculate and interpret key profitability ratios, including margins, ROA (Return on Assets), and ROE (Return on Equity), as well as liquidity and solvency measures such as the current ratio, quick ratio, and coverage ratios. In addition, students will apply trend analysis, common-size analysis, and industry benchmarking to assess performance over time and compare a firm against its peers.

In this module, you will learn the core principles of time value of money and why money available today is worth more than the same amount received in the future. You will compute present and future values for single cash flows, annuities, annuities due, and growing perpetuities, and you will construct loan amortization schedules to better understand how loans are repaid over time. The module also shows how time value of money concepts are applied to capital allocation decisions and the valuation of future obligations.