STARTS

Mar 27th 2017

Principles of Valuation: Time Value of Money (Coursera)

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We will introduce the time value of money (TVM) framework in a carefully structured way, using relatively simple applications at first and quickly moving to more advance ones. We will then spend some time on developing an understanding of alternative decision criteria (NPV, IRR, Profitability, etc.) that are commonly used in the real world. We will wrap up the course with an exposure to the determination of cash flows using accounting principles. The main focus in this building block will be on individual/personal decisions because of two reasons: (a) we learn when we see value to us as individuals and (b) the beauty of finance is that the building blocks of finance are applicable to any decision, personal or corporate.

The course will last six weeks with time included for assimilation and two final exams.

This course is the first in a sequence of four courses, followed by a Capstone Project, that comprise a Specialization on Valuation & Investing.


Course 1 of 5 in the Introduction to Finance: Valuation and Investing Specialisation.

Evaluate risk and reward, assess alternatives, and determine the value of a project or company. This Specialization builds on the success of the Introduction to Finance course and provides a rigorous introduction to core topics in financial valuation, including time value of money, cash flow analysis, asset pricing, and risk and return. In the final Capstone Project, you’ll apply your skills to research, analyze, and value a real-world enterprise.



Syllabus


WEEK 1

Overview of Specialization & Course

This module contains detailed videos and syllabi of both the Specialization and this course. This specialization has been designed to enable you to learn and apply the powerful tools of modern finance to both personal and professional situations. The courses within progress linearly and build on each other and it is important for you to get an understanding of why this specialization may be relevant to your goals, again both personal and professional. Please review the videos and syllabi as they will give you a sense of the specialization and how this specific course fits within. The teaching style and philosophy of the instructors is also presented to you (hopefully) in sufficient detail. Most importantly, it will give you enough information for you to make a decision about whether you want to take this course, by itself or as part of a specialization.

Module 1

In module one, we will introduce the framework of time value of money (TVM) in a carefully structured way, using relatively simple applications.

Graded: Assignment 1

Graded: Assignment 2


WEEK 2

Module 2

We will build on Module 1, and move quickly to more advanced applications of TVM focusing on situations we confront on a daily basis.

Graded: Assignment 3

Graded: Assignment 4


WEEK 3

Module 3

In this module, we will spend some time on developing an understanding of alternative decision criteria - Net Present Value (NPV), Internal Rate of Return (IRR), Profitability, etc. - that are commonly used in the real world, with a focus on a critical evaluation of their strengths and weaknesses.

Graded: Assignment 5

Graded: Assignment 6


WEEK 4

Module 4

We will wrap up the course by exposing you to the key determinants of cash flows using accounting principles.

Graded: Assignment 7

Graded: Assignment 8


WEEK 5

Module 5

This week will be spent on a short wrap up video of the course and time for assimilation and review by learners to be prepared to take the final exams. In the past, learners have really valued this time and hence it is built into this new structure/platform as well.


WEEK 6

Module 6

This is finals week. Please note there are two finals and you need to attempt both.

Graded: Final 1

Graded: Final 2