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Business Finance |
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Course Outline
Duration:
1 Day
Description: This course introduces students to the fundamentals of business
finance. Students learn how to identify, calculate, and assess individual
investments and investment portfolios, identify types of investment risks,
calculate risk, and analyze the results. Students also learn how to calculate
the future and present values of individual cash flows, ordinary annuities,
annuities due, perpetuities, and investments with uneven cash flows. Course
activities also cover calculating interest rates and maturity dates,
establishing an amortization table, and calculating payments on amortized
loans. Students also learn about the bond and stock markets, identifying
characteristics of various types of stocks and bonds and their risks, and how
to evaluate and invest in stocks and bonds. The manual is designed for quick
scanning in the classroom and filled with interactive exercises that help
ensure student success.
Unit 1: Stand-alone risk
Topic A: Risk basics
Topic B: Probability
analysis and rate of return
Topic C: Risk
calculation
Unit 2: Portfolio risk
Topic A:
Diversification principle
Topic B: The Capital
Asset Pricing Model
Topic C: Ratio
analysis
Unit 3: Future and present value of money
Topic A: Time value
of money
Topic B: Compounding
and discounting
Unit 4: Even and uneven cash flows
Topic A: Annuities
Topic B: Calculating
financial values
Unit 5: Bonds and stocks
Topic A: Bond
fundamentals
Topic B: Stock
fundamentals
Topic C: Valuation of bonds and stocks