What will you learn?
- Communicate & collaborate with stakeholders & business/financial leaders using the right terminology and vocabulary
- Learn about fundamental finance concepts
- Develop skills in interpreting financial statements
- Analyze product P&L to identify trends
- Apply finance concepts learned in the last term to create bottom-up financial models for businesses
- Understand the basics of Enterprise Valuation, Pre & Post Money Equity valuation
- Gain proficiency in designing and presenting financial data
Pre-requisites
Description
Course curriculum
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2
Chapter 2 - Accounting : Understanding Financial Statements
- The Language of accounting
- What is Capital? How does it increase?
- What are the Primary Financial Statements, and what are their building blocks?
- Assets, Liabilities, Incomes & Expenses
- Building a personal Balance Sheet
- Building a Company Balance Sheet
- What is the P&L Account?
- The PL An introduction
- Items in a PL statement
- Format of PL Account
- What happens during each transaction
- A few initial entries
- Some more entries
- Entries for the end of the Year
- Observations on Balance Sheet
- Some accounting Concepts and Conventions
- The key accounting concepts
- Valuation of Assets shown in the Balance Sheet
- Creating a template for PL and Balance Sheet
- Making Accounting entries (Part-2)
- Making Accounting entries (Part-3)
- Chapter 2: Quiz
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3
Chapter 3 - Basic of Investment Evaluation : The Tools
- Compound Interest
- Periodic Compounding
- Compounding vs. Discounting
- A = P*(1+r)^n and its derivations
- The rule of 72
- Applying the rule of 72
- The impact of compounding
- Arithmetic Mean vs Geometric Mean
- Mean or Median which average to use
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4
Chapter 4 :The Basics of Investment Evaluation
- Present Values and Future Values of A Cash flow
- $100 now or $110 later?
- The Required Rate of Return "r"
- My expectation of "r" depends on risk perception
- Two Projects: A and B
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5
Chapter 5 - Investment Evaluation: How to deal with cash flows of Differing time periods
- Given a series of cash flows, how to add them?
- Present value of an annuity
- Investing in a Bond - what happens when I buy a bond?
- When I sell a bond, how do people value it?
- Three requirements for a DCF
- Why analyzing cash flows and not profits is important?
- Spreadsheet conventions for DCF problems
- DCF two methods - NPV & IRR
- The Capital Budgeting Process
- Investment Evaluation - A few key concepts and terms
- Present value of a growing perpetual annuity
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6
Chapter 6 - A Capital Budgeting problem
- A Capital Budgeting Problem - ABC ltd
- Additional Learning Resources
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7
Conclusion
- Conclusion
- Resource Library