Finance Course

Lesson 1 • The Role of Finance in Organisations

Defines finance as a discipline and maps its function within business operations. Establishes why financial decisions drive organisational strategy and resource allocation.

Lesson 2 • Risk and Return Fundamentals

Introduces the trade-off between risk and expected return as a central principle of finance. Students apply this framework to evaluate basic financial choices.

Lesson 3 • Core Financial Concepts and Terminology

Introduces essential vocabulary including assets, liabilities, equity, revenue, and expenses. Provides the language foundation needed for all subsequent financial analysis.

Lesson 1 • The Income Statement Explained

Covers the structure and purpose of the income statement from revenue to net income. Connects line items to business performance and profitability assessment.

Lesson 2 • Understanding the Balance Sheet

Examines assets, liabilities, and equity as a snapshot of financial position at a point in time. Teaches how balance sheet structure reveals solvency and capital allocation.

Lesson 3 • Linking the Three Financial Statements

Demonstrates how the income statement, balance sheet, and cash flow statement interconnect. Students trace transactions across all three statements to build integrated understanding.

Lesson 4 • Notes, Disclosures, and Audit Reports

Explains the role of footnotes, accounting policy disclosures, and auditor opinions in financial reporting. Teaches students to identify red flags and assess reporting quality.

Lesson 1 • Liquidity and Solvency Ratios

Measures a firm's ability to meet short-term obligations and sustain long-term debt. Connects ratio outputs to credit risk and operational stability.

Lesson 2 • Efficiency and Activity Ratios

Evaluates how effectively a firm uses its assets to generate revenue. Highlights operational bottlenecks and working capital management quality.

Lesson 3 • Profitability Ratios and Margins

Quantifies how efficiently a firm converts revenue into profit at multiple levels. Enables comparison of profitability across firms and industries.

Lesson 4 • Comparative and Trend Analysis

Applies ratios across time periods and peer companies to identify patterns and anomalies. Builds the analytical judgement needed for investment and credit decisions.

Lesson 1 • Capital Budgeting Process Overview

Maps the stages of capital budgeting from project identification to post-audit review. Establishes the decision-making context for all investment evaluation techniques.

Lesson 2 • Cash Flow Estimation for Projects

Develops skills in forecasting project cash flows including taxes, depreciation, and terminal value. Accurate estimation is the foundation of reliable capital budgeting.

Lesson 3 • Risk Analysis in Capital Projects

Applies sensitivity, scenario, and simulation analysis to quantify project risk. Students adjust investment decisions based on probabilistic outcomes.

Lesson 4 • Net Present Value Method

Teaches NPV as the primary criterion for value-creating investment decisions. Students calculate and interpret NPV for single and competing projects.

Lesson 1 • Leverage and Its Financial Effects

Analyses operating and financial leverage and their impact on earnings volatility. Students assess how leverage amplifies both risk and return.

Lesson 2 • Capital Structure Theory

Examines how debt-equity mix affects firm value through tax shields and financial distress costs. Introduces trade-off theory and pecking order theory.

Lesson 3 • Sources of Business Financing

Surveys debt, equity, and hybrid financing instruments available to firms. Establishes the building blocks for understanding capital structure decisions.

Lesson 4 • Cost of Debt and Equity

Calculates the after-tax cost of debt and the cost of equity using established models. These components feed directly into the weighted average cost of capital.

Lesson 1 • Short-Term Financing Options

Surveys credit lines, trade credit, and commercial paper as tools for funding working capital gaps. Students select appropriate instruments based on cost and flexibility.

Lesson 2 • Inventory and Payables Management

Optimises inventory levels and supplier payment terms to reduce working capital requirements. Balances cost minimisation with supply chain reliability.

Lesson 3 • Working Capital Fundamentals

Defines net working capital and its role in sustaining day-to-day business operations. Connects working capital levels to liquidity risk and operational performance.

Lesson 4 • Cash and Liquidity Management

Covers techniques for optimising cash balances and managing short-term liquidity needs. Students apply cash forecasting and pooling strategies to minimise idle funds.

Lesson 1 • Valuation Principles and Approaches

Establishes the conceptual basis for valuation and the three primary approach categories. Students understand when each approach is most appropriate and reliable.

Lesson 2 • Discounted Cash Flow Valuation

Builds a full DCF model from free cash flow forecasts to terminal value and equity value. Applies WACC as the discount rate within an integrated valuation model.

Lesson 3 • Asset-Based and Sum-of-Parts Valuation

Values firms by aggregating individual asset values or business segment values. Most applicable to holding companies, distressed firms, and asset-heavy businesses.

Lesson 4 • Precedent Transaction Analysis

Derives valuation from historical acquisition prices paid for comparable businesses. Captures control premiums and market timing effects absent in trading comps.

Lesson 1 • Performance Measurement and Value Creation

Applies economic profit and value-based metrics to assess whether management creates shareholder value. Links financial KPIs to strategic decision-making.

Lesson 2 • Financial Planning and Forecasting

Builds integrated financial models linking revenue assumptions to projected statements. Establishes the planning process as a tool for strategic resource allocation.

Lesson 3 • Mergers, Acquisitions, and Divestitures

Covers the strategic rationale, valuation, and deal structure of M&A transactions. Students evaluate synergies, accretion/dilution, and post-merger integration challenges.

Lesson 4 • Dividend and Payout Policy

Analyses how firms return value to shareholders through dividends and buybacks. Connects payout decisions to capital structure, signalling, and investor expectations.