Business Finance – Eton College

About Course

This course introduces the core principles of financial management, including capital budgeting, financial analysis, and the effective management of financial resources. Emphasis is placed on developing analytical and decision-making skills essential for evaluating financial performance and making informed financial decisions in a business environment.

Upon successful completion of this course, the student will have demonstrated the ability to:
● Explain the key principles and concepts of business finance.
● Conduct financial analysis using various financial statements.
● Apply capital budgeting techniques to evaluate investment opportunities.
● Understand the principles of risk and return in financial decision-making.
● Develop strategies for effective financial resource management.
● Analyze the impact of financial decisions on overall business performance.

Course Content

Topic 1: Introduction to Business Finance

Introduction

00:00
LO1: Explain the role and importance of Business Finance in supporting Organizational Decision-making and Long-term Value creation

00:00
LO2: Describe the key functions of Financial Management, including Investment, Financing, and Dividend decisions

00:00
LO3: Summarize the objectives of Financial Management and the relationship between financial Managers, Stakeholders, and Firm performance

00:00

Topic 2: Financial Statements and Analysis

Topic 3: Time Value of Money

Topic 4: Risk and Return

Assessment I

Topic 5: Valuation of Bonds and Stocks

Topic 6: Capital Budgeting

Topic 7: Cost of Capital

Topic 8: Midterm Test or Assignment

Assessment II

Topic 9: Working Capital Management and Financial Markets & Institutions

Topic 10: Capital Structure Decisions, Dividend Policy, and Internal Financing

Final Exam

About Course

What Will You Learn?

Course Content

Topic 1: Introduction to Business Finance

Introduction

LO1: Explain the role and importance of Business Finance in supporting Organizational Decision-making and Long-term Value creation

LO2: Describe the key functions of Financial Management, including Investment, Financing, and Dividend decisions

LO3: Summarize the objectives of Financial Management and the relationship between financial Managers, Stakeholders, and Firm performance

Topic 2: Financial Statements and Analysis

Introduction

LO1: Identify and describe the components of major Financial Statements, including the Income Statement, Balance Sheet, and Cash Flow statement

LO2: Analyze Financial performance using key financial Ratios related to Liquidity, Profitability, Efficiency, and Solvency

LO3: Evaluate a firm’s Financial health by interpreting Trends and Relationships within financial statements

Topic 3: Time Value of Money

Introduction

LO1: Explain the concept of the Time Value of Money and its importance in financial Decision-making

LO2: Calculate and interpret Present Value, Future Value, and Annuity values using appropriate Financial formulas

LO3: Apply Time Value of money principles to evaluate Savings, Investment, and Loan Repayment scenarios

Topic 4: Risk and Return

Introduction

LO1: Define financial Risk and Return and describe the relationship between them in Investment decisions

LO2: Analyze different types of Risk, including Systematic and Unsystematic risk, and their impact on Expected Returns

LO3: Evaluate Risk-return Trade-offs using basic portfolio concepts and Diversification principles

Assessment I

Assessment I

Topic 5: Valuation of Bonds and Stocks

Introduction

LO1: Explain the fundamental principles used in valuing Bonds and Common Stocks

LO2: Calculate the intrinsic value of Bonds and Stocks using Discounted Cash Flow and Dividend Valuation models

LO3: Analyze how Interest rates, growth expectations, and Market conditions influence security valuations

Topic 6: Capital Budgeting

Introduction

LO1: Describe the Capital Budgeting process and its role in Long-term Investment planning

LO2: Apply Capital Budgeting techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period

LO3: Evaluate Investment projects by comparing financial metrics and assessing their impact on firm value

Topic 7: Cost of Capital

Introduction

LO1: Define the concept of Cost of Capital and explain its significance in corporate finance decisions

LO2: Calculate the cost of different sources of Capital, including Debt, Equity, and Preferred Stock

LO3: Analyze the Weighted Average Cost of Capital (WACC) and its role in evaluating Investment opportunities

Topic 8: Midterm Test or Assignment

Introduction

LO1: Demonstrate understanding of key financial management concepts

LO2: Apply Financial analysis, Valuation, and Time value of Money techniques to solve practical finance problems

LO3: Evaluate financial scenarios and justify appropriate financial decisions using relevant concepts and tools

Assessment II

Assessment II

Topic 9: Working Capital Management and Financial Markets & Institutions

Introduction

LO1: Explain the importance of Working Capital management in maintaining Liquidity and Operational efficiency

LO2: Analyze the management of Short-term Assets and Liabilities, including Cash, Inventory, Receivables, and Payables

LO3: Describe the structure and functions of Financial markets and institutions and their role in facilitating Capital Flow

Topic 10: Capital Structure Decisions, Dividend Policy, and Internal Financing

Introduction

LO1: Explain the concept of Capital structure and the factors influencing a firm’s Financing decisions

LO2: Analyze different Dividend policies and their implications for Shareholders and Firm value

LO3: Evaluate the role of Retained Earnings and Internal financing in supporting Corporate Growth and Financial Stability

Final Exam

Final Exam Review

Final Exam

Quick Links

Resources

Support