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INTRODUCTION TO FINANCE COURSE OBJECTIVES This is the introductory course in Finance prepared specifically for the online offering via Coursera. Its purpose is to equip you with a framework and basic tools and techniques necessary to make sound decisions. The main focus of the course is on valuation of both real and financial assets. The course is designed with the following specific objectives:  To teach the fundamental methods and skills of finance vital for understanding valuation of any asset, personal or corporate  To prepare you to make sound personal and professional decisions  To prepare you to take more advanced courses in finance  To provide you with a base level of sophistication to enable you to better understand the role of finance in debates over corporate and public policy. COURSE DESCRIPTION This course is primarily devoted to the principles of financial valuation. We will first discuss the concept of time value of money in extensive detail with the use of several real world examples, and then apply the principles of valuation to value (a) real projects or ideas and (b) financial securities (stocks and bonds). Since decision‐making virtually always involves risk and uncertainty, we will then introduce the concept of risk, and the relation between risk and return. This is followed by a discussion of the relation between financing and the weighted average cost of capital in a world without frictions. We will then integrate our knowledge of cash flows with our understanding of risk and financing to revisit valuation and decision‐making. Although the concepts of competitive capital markets and market efficiency will not be covered in a separate session, they will be woven in the fabric of the course. COURSE PEDAGOGY: THE IMPORTANCE OF PROBLEM SOLVING This is a demanding course that will require a lot of hard work, from both you and me. I have deliberately pitched it at a relatively high level with an