1. Course Content

SESSION ZERO – LEARNING OBJECTIVES 

SESSION I – FINANCIAL CONCEPTS

1. Definitions

i. Operating Cycle

ii. Books

iii. Liquidity

iv. Financial Structure

v. Maturity

2. Forms of Ownership

i. Sole Proprietor

ii. Partnerships

iii. Corporations

iv. Limited Liability Companies (LLC’s)

3. Financial Statements

4. The Balance Sheet

5. The Income Statement

6. Statement of Cash Flows

7. The Accounting Notes

SESSION II – REVIEW OF FINANCIAL STATEMENTS

1. Assets

i. Current assets

ii. Property Plant & Equipment

2. Depreciation

3. Liabilities

i. Current Liabilities

ii. Long Term Liabilities

4. Net working capital

5. Equity

i. Shares

ii. Authorized Shares

iii. Issued Shares

iv. Treasury Shares

v. Preferred Shares

vi. Common Stock

vii. Retained Earning

ix. Bankruptcy

6. Income Statement

SESSION 3 – RISK AND RETURN

1. Risk & Reward
i. Important Points to remember

2. Return

i. Return on Equity

ii. Return on Invested Capital & ROE

iii. Payback period

SESSION IV – TIME VALUE OF MONEY: AN OVERVIEW

1. Discount Rate
i. Compounding

2. Time Value of Money

i. Examples

3. Present Value in Action

4. Internal Rate of Return (IRR)

i. Internal Rate of Return (IRR) and comments

SESSION V – OPPORTUNITY COST AND COST OF CAPITAL

1. Opportunity Cost & Cost of Capital

i. Scenario 1 – Understanding Opportunity Cost
ii. Scenario 2 – Understanding Cost of Capital

2. Weighted Average Cost of Capital (WACC)

SESSION VI – CASE STUDY: ELECTRONIC ARTS

1. Case Study

2. Exhibits

EXCEL Examples

No

2. Introduction

This is the first course in our series on Finance. Although not essential, knowledge of basic accounting, mathematics and algebra would be quite useful. There are no other pre-requisites.

This course is about cash. As we explain later, when it comes to Finance, it all boils down to cash, cash projections & cash management. Cash is the lifeblood of businesses.

There are three central themes. What exactly is cash flow and how can you measure it? How do you determine cash flow for projects, businesses & investment opportunities? Finally given cash flows for a wide variety of opportunities, on what basis should an investment be made; is there such a thing as good or bad cash flows, or a formal selection and rejection criteria for investment opportunities?

This course uses three case studies to apply these principles & themes. There are seven sessions (0, I, II, III, IV, V, VI) that build up on each other.

3. Buy this course

To buy this or any other course, check out the finance course store.