This course expands on concepts from Principles of Finance 1 to provide greater depth of core issues including valuation, cost of capital, capital budgeting, estimating cash flows, capital structure, dividends, forecasting, and working capital management. Case studies and information resources will be utilized to explain how financial theory is applied in real-life situations

Learning Objectives and Outcomes:

By the end of this course students will be able to:

1. Perform basic forecasting and planning.
2. Perform financial ratio analysis.
3. Examine short-term financing.
4. Evaluate long-term capital projects.
5. Solve the cost of capital.

Course Schedule and Topics

This course will cover the following topics in eight learning sessions, with one Unit per week. The Final Exam will take place during Week/Unit 9 (UoPeople time).

Week 1: Unit 1 – Principles: Introduction to Business Valuation Basics

Week 2: Unit 2 – Principles: Estimating Cash Flows

Week 3: Unit 3 – Principles: Capital Budgeting

Week 4: Unit 4 – Principles: Capital Structure and Cost of Capital

Week 5: Unit 5 – Application: Managing Working Capital

Week 6: Unit 6 -Application: Managing Cost of Capital

Week 7: Unit 7 -Application: Case Studies

Week 8: Unit 8 -Application: Risk Management

Week 9: Unit 9 -Course Review and Final Exam

Learning Guide

The following is an outline of how this course will be conducted, with suggested best practices for students.

Unit 1: Principles: Introduction to Business Valuation Basics

• Read the Learning Guide and the Reading Assignment
• Participate in the Discussion Assignment (post, comment, and rate in the Discussion Forum)
• Complete and submit the Written Assignment
• Make entries to the Learning Journal
• Take the Self-Quiz

Unit 2: Principles: Estimating Cash Flows

• Peer assess Unit 1 Written Assignment
• Read the Learning Guide and the Reading Assignment
• Participate in the Discussion Assignment (post, comment, and rate in the Discussion Forum)
• Complete and submit the Written Assignment
• Make entries to the Learning Journal
• Take the Self-Quiz

Unit 3: Principles: Capital Budgeting

• Peer assess Unit 2 Written Assignment
• Read the Learning Guide and the Reading Assignment
• Participate in the Discussion Assignment (post, comment, and rate in the Discussion Forum)
• Complete and submit the Written Assignment
• Make entries to the Learning Journal
• Take the Self-Quiz
• Take the Graded Quiz

Unit 4: Principles: Capital Structure and Cost of Capital

• Peer assess Unit 3 Written Assignment
• Read the Learning Guide and the Reading Assignment
• Participate in the Discussion Assignment (post, comment, and rate in the Discussion Forum)
• Complete and submit the Written Assignment
• Make entries to the Learning Journal
• Take the Self-Quiz

Unit 5: Application: Managing Working Capital

• Peer assess Unit 4 Written Assignment
• Read the Learning Guide and the Reading Assignment
• Participate in the Discussion Assignment (post, comment, and rate in the Discussion Forum)
• Complete and submit the Written Assignment
• Make entries to the Learning Journal
• Take the Self-Quiz

Unit 6: Application: Managing Cost of Capital

• Peer assess Unit 5 Written Assignment
• Read the Learning Guide and the Reading Assignment
• Participate in the Discussion Assignment (post, comment, and rate in the Discussion Forum)
• Complete and submit the Written Assignment
• Make entries to the Learning Journal
• Take the Self-Quiz
• Take the Graded Quiz

Unit 7: Application: Case Studies

• Peer assess Unit 6 Written Assignment
• Read the Learning Guide and the Reading Assignment
• Participate in the Discussion Assignment (post, comment, and rate in the Discussion Forum)
• Complete and submit the Written Assignment
• Make entries to the Learning Journal
• Take the Self-Quiz

Unit 8: Application: Risk Management

• Peer assess Unit 7 Written Assignment.
• Read the Learning Guide and the Reading Assignment
• Participate in the Discussion Assignment (post, comment, and rate in the Discussion Forum)
• Complete and submit the Learning Journal
• Take the Self-Quiz
• Read the Unit 9 Learning Guide carefully for instructions on the Final Exam
• Take the Review Quiz

Unit 9: Course Review and Final Exam

• Read the Learning Guide and take the Review Quiz, if you haven’t already done so
• Prepare for, take, and submit the Final Exam
• The Final Exam will take place during the Thursday and Sunday of Week/Unit 9 (UoPeople time); exact dates, times, and other details will be provided accordingly by your instructor