Business Finance

COURSE OUTLINE:

Description This 1-day workshop introduces participants to the fundamentals of business finance. Participants learn how to identify, calculate, and assess individual investments and investment portfolios, identify types of investment risks, calculate risk, and analyze the results. Participants also learn how to calculate the future and present values of individual cash flows, ordinary annuities, annuities due, perpetuities, and investments with uneven cash flows. Workshop activities also cover calculating interest rates and maturity dates, establishing an amortization table, and calculating payments on amortized loans. Participants also learn about the bond and stock markets, identifying characteristics of various types of stocks and bonds and their risks, and how to evaluate and invest in stocks and bonds.

Course Content


STAND-ALONE RISK

Risk basics
Probability analysis and rate of return
Risk calculation

PORTFOLIO RISK

Diversification principle
The Capital Asset Pricing Model
Ratio analysis

FUTURE AND PRESENT VALUE OF MONEY

Time value of money
Compounding and discounting

EVEN AND UNEVEN CASH FLOWS

Annuities
Calculating financial values

BONDS AND STOCKS • TOPIC C: VALUATION OF BONDS AND STOCKS

Bond fundamentals
Stock fundamentals
Valuation of bonds and stocks