Basics of Corporate Finance

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.