Introduction to Finance

This course is a basic introduction to the principles of finance. It will prepare you for the 3-credit version (Corporate Finance 1009) and introduce you to principles of valuation that are useful in everything from family law to settlement negotiations over civil disputes. The course provides a framework for answering the basic question: how much is this firm (or project) worth? We will cover topics such as: earnings, cash flows, income statements, interest rates, time value of money, risk and return and the cost of capital. No prior knowledge of finance or fancy math skills will be assumed. The course will consist primarily of on-line modules and problem sets that you will complete on your own and in small groups. We will have "live" class sessions to discuss the application of these principles in a legal setting and to hear from lawyers, investors and policy makers how finance has been useful in their careers. There will be weekly problem sets and you will get experience with building a simple excel spreadsheet that will help you estimate the value of a potential new project. There is a final project where you are asked to value a company and present your teams' findings to the class. On-line component. Elements used in grading: Written Assignments, Final Project. Participation.