INTRODUCTION: BASICS OF CORPORATE FINANCE
COURSE OVERVIEW
Basics of Corporate Finance serves as an introductory course for students beginning
their study of finance and financial markets. The ideas and calculations presented in
this workbook serve as the foundation for continued study in the areas related to
corporate finance and the capital and derivative markets. The purpose of this course
is to help the student build a working vocabulary of the financial world and to
understand the basic computations used by analysts working in the corporate finance
field. The terms and ideas covered in this course will provide the background
necessary for the student to understand concepts presented in future courses.
This workbook serves as a foundation for other courses in the series. It is comprised
of ten units.
UNIT 1: Financial Statement Analysis
The first unit in the workbook is an introduction to the financial statements of a
company. This unit briefly explains the purpose of each financial statement and
provides definitions for the common items found in each of the statements. The
unit also introduces ratio analysis and its use in the analysis of the finances and
operations of a firm. The unit focuses on definitions of key terms, although some
simple mathematical calculations and relationships are introduced and explained.
UNIT 2: Financial Markets and Interest Rates
The next unit is a brief overview of the financial markets and the components of
interest rates. This unit will help you understand how financial markets operate and
to identify the participants in the markets. A brief discussion of interest rates and
the role they play in the financial markets is also included. The unit's focus is
mainly to identify and define key terms; it does not require any mathematical
calculations.