Introduction to Finance: The Basics

Introduction to Finance: The Basics

Instructor: Xi Yang

Access provided by ExxonMobil

79,193 already enrolled

4 modules

Gain insight into a topic and learn the fundamentals.

542 reviews

Beginner level

No prior experience required

Flexible schedule

2 weeks at 10 hours a week

Learn at your own pace

96%

Most learners liked this course

4 modules

Gain insight into a topic and learn the fundamentals.

542 reviews

Beginner level

No prior experience required

Flexible schedule

2 weeks at 10 hours a week

Learn at your own pace

96%

Most learners liked this course

What you'll learn

Build a financial knowledge base by understanding essential topics in modern finance.
Develop an understanding of the issues managers must consider when making financial decisions.
Be ready to conduct analysis using information from financial statements.
Understand and apply the time value of money in order to value financial and real asset investments and to make investment decisions.

Skills you'll gain

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Assessments

25 assignments¹

AI Graded see disclaimer

Taught in English

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There are 4 modules in this course

In the Introduction to Finance I: The Basics course, you will be introduced to the basic concepts needed to understand the financial manager’s decision-making process. To achieve that, you will learn about the basic forms a business can take and the goal of the financial manager. You will also learn the fundamentals of financial statements and how to measure a company’s financial health using financial ratios. In addition, you will explore how to allocate capital across time to create value. After learning the course, you should be familiar with major topics in modern finance and communicate with others within and outside of the business world. With a deep understanding of the financial side of the business, you will be in a better position to make informed decisions and plan for the financial future.

In this module, you will be introduced to three basic forms to organize a business based on the nature of the business and its financing needs. Examining the goal of financial business helps us to develop a concrete framework to evaluate a corporate manager’s financial decisions. The corporation organization form is widespread because it can solve problems facing big business, but it also incurs the agency cost. You will also learn about some strategies companies are using to mitigate the agency problem.

What's included

13 videos9 readings7 assignments1 discussion prompt1 plugin

13 videos Total 64 minutes

Welcome to Introduction to Finance: The Basics 4 minutes
Instructor Bio 2 minutes
Learn on Your Terms 1 minute
1-1.1. Module 1 Overview 4 minutes
1-2.1. Introduction of the Three Legal Forms to Organize Firms 1 minute
1-2.2. The Sole Proprietorship 7 minutes
1-2.3. The Partnership 3 minutes
1-2.4. The Corporation 6 minutes
1-2.5. The Hybrid Form 6 minutes
1-3.1. The Goal of Financial Management 8 minutes
1-4.1. The Corporate Governance 10 minutes
1-5.1. The Agency Problem 8 minutes
Module 1 Wrap Up 4 minutes

9 readings Total 90 minutes

Syllabus 10 minutes
Formula Sheet 10 minutes
Glossary 10 minutes
Brand Description 10 minutes
About the Discussion Forums 10 minutes
Online Education at Gies College of Business 10 minutes
Updating Your Profile 10 minutes
Module 1 Overview 10 minutes
Module 1 Readings 10 minutes

7 assignments Total 140 minutes

Orientation Quiz 30 minutes
Lesson 1-1 Practice Quiz 10 minutes
Lesson 1-2 Practice Quiz 10 minutes
Lesson 1-3 Practice Quiz 10 minutes
Lesson 1-4 Practice Quiz 10 minutes
Lesson 1-5 Practice Quiz 10 minutes
Introduction to Finance Quiz 60 minutes

1 discussion prompt Total 10 minutes

Getting to Know Your Classmates 10 minutes

1 plugin Total 15 minutes

Demographics Survey 15 minutes

In this module, you will learn the basics of financial statements. The balance sheet captures the assets, liabilities, and stockholders’ equity of a company. The income statement is used to show profit and loss. You will explore the link between these two financial statements. You will also learn how to derive cash flows from financial statements, and the sources and uses of cash flow.

What's included

8 videos2 readings7 assignments

8 videos Total 57 minutes

2-1.1. Module 2 Overview 3 minutes
2-2.1. Financials 9 minutes
2-3.1. Balance Sheet: Introduction 8 minutes
2-3.2. Balance Sheet: Fiscal Year 6 minutes
2-3.3. Balance Sheet: Other Topics 11 minutes
2-4.1. Income Statement 7 minutes
2-5.1. Statement of Cash Flow 9 minutes
Lesson 2-6.1. Module 2 Wrap Up 4 minutes

2 readings Total 20 minutes

Module 2 Overview 10 minutes
Module 2 Readings 10 minutes

7 assignments Total 120 minutes

Lesson 2-1 Practice Quiz 10 minutes
Lesson 2-2 Practice Quiz 10 minutes
Lesson 2-3 Practice Quiz 10 minutes
Lesson 2-4 Practice Quiz 10 minutes
Lesson 2-5 Practice Quiz 10 minutes
Lesson 2-6 Practice Quiz 10 minutes
Financial Statements and Cash Flow Quiz 60 minutes

This module is the application of financial statements. You will be introduced to the concept of standardized statements. You will learn how to conduct ratio analysis to evaluate the financial health of a company. In addition, you will use financial ratios to measure the liquidity of the company, the leverage of the company, the profitability of the company, and the asset management of the company.

What's included

10 videos2 readings5 assignments1 peer review

10 videos Total 59 minutes

3-1.1. Module 3 Overview 4 minutes
3-2.1. Standardized Statements 7 minutes
3-3.1. Financial Ratios: Introduction 3 minutes
3-3.2. Financial Ratios: Liquidity Ratios 7 minutes
3-3.3. Financial Ratios: Leverage Ratios 6 minutes
3-3.4. Financial Ratios: Turnover Ratios 6 minutes
3-3.5. Financial Ratios: Profitability Ratios 10 minutes
3-3.6. Financial Ratios: Market Value Ratios 5 minutes
3-4.1. Financial Forecasting 7 minutes
Module 3 Wrap Up 3 minutes

2 readings Total 20 minutes

Module 3 Overview 10 minutes
Module 3 Readings 10 minutes

5 assignments Total 100 minutes

Lesson 3-1 Practice Quiz 10 minutes
Lesson 3-2 Practice Quiz 10 minutes
Lesson 3-3 Practice Quiz 10 minutes
Lesson 3-4 Practice Quiz 10 minutes
Financial Statements Analysis Quiz 60 minutes

1 peer review Total 120 minutes

Module 3 Peer Review Assignment 120 minutes

In this module, you will be introduced to the basic concepts about the time value of money: the present value, the future value, and the net present value. You will also examine the difference between the quoted interest rate and effective annual rate. Two explicit patterns of cash flow will be studied in detail: annuity and perpetuity. There are widespread applications of time value of money in our daily life and business valuation. Some examples include mortgage plan selection, pension plan choice, and investment decisions.

What's included

7 videos4 readings6 assignments1 peer review1 plugin

7 videos Total 60 minutes

4-1.1. Module 4 Overview 4 minutes
4-2.1. Present Value and Future Value 7 minutes
4-3.1. Net Present Value 13 minutes
4-3.2. APR and EAR 11 minutes
4-4.1. Perpetuity 8 minutes
4-4.2. Annuity 13 minutes
4-5.1. Module 4 Wrap Up 3 minutes

4 readings Total 40 minutes

Module 4 Overview 10 minutes
Module 4 Readings 10 minutes
Congratulations on completing the course! 10 minutes
Get Your Course Certificate 10 minutes

6 assignments Total 110 minutes

Lesson 4-1 Practice Quiz 10 minutes
Lesson 4-2 Practice Quiz 10 minutes
Lesson 4-3 Practice Quiz 10 minutes
Lesson 4-4 Practice Quiz 10 minutes
Lesson 4-5 Practice Quiz 10 minutes
Time Value of Money Quiz 60 minutes

1 peer review Total 120 minutes

Module 4 Peer Review Assignment 120 minutes

1 plugin Total 15 minutes

Course-End Survey 15 minutes

Build toward a degree

This course is part of the following degree program(s) offered by University of Illinois Urbana-Champaign. If you are admitted and enroll, your completed coursework may count toward your degree learning and your progress can transfer with you.¹