## Maalot Educational Network | Evaluated Learning Experience

## Principles of Finance (BUS211)

**Classroom:** 39 hours (13 weeks). **Distance / Hybrid**: Varies

September 2020 - Present.

Upon successful completion of this course, students will be able to identify what the components of an interest rate are (time value of money, credit risk, inflation rate risk, liquidity risk and reinvestment risk); be able to explain the difference between specific and systemic risk and the role of diversification as a risk management tool; be able to calculate simple and compounded interest and calculate the future value of a cash flow stream and the future value of an investment; be able to calculate the present value of a stream of future cash flows; be able to calculate the value of an investment using net present value calculations and to calculate the internal rate of return of the investment; be able to calculate the present and future values of annuities; be able to price a zero coupon bond and a coupon bond; be able to calculate the price of a console/perpetuity; be able to price a stock with a fixed growth rate and an increasing growth rate; be able to assess the cash flows of a capital project, including depreciation; be able to assess the value of a company using financial ratios an analytical tools; be able to calculate the beta of an asset as well as the required rate of return on a project (cost of capital) for a specific company.

Major topics taught in this course include: the foundations of finance: interest, money and capital markets, exchanges, risk, and valuation of assets. Methods of instruction include lecture, discussion and textual preparations.

In the lower division baccalaureate/associate degree category, 3 semester hours in Business or Finance (3/21).