Syllabus Help CenterINTRODUCTION TO CORPORATE FINANCEProfessor Michael R. RobertsThe William H. Lawrence Professor of FinanceThe Wharton SchoolUniversity of PennsylvaniaCOURSE DESCRIPTION This course provides a brief introduction to the fundamentals of fnance, emphasizing their application to a wide variety of real-world situations spanning personal fnance, corporate decision-making, and fnancial intermediation. Key concepts and applications include: time value of money, risk-return tradeof, cost of capital, interest rates, retirement savings, mortgage fnancing, auto leasing, capital budgeting, asset valuation, discounted cash fow (DCF) analysis, net present value, internal rate of return, hurdle rate, payback period. COURSE MATERIALS The course materials consist of short videos containing the lectures for the course, and problem setsto be completed at the end of each week. Each topic is largely self-contained but the lectures are best viewed sequentially as many lectures build of of preceding ones. The purpose of each lecture is to introduce a concept and illustrate its usage. Mastery of the concept comes from working the problems. I want to emphasize this last point. The full value of the course can only be realized through a combination of viewing the videos and working the problems at the end of each week. The problems have been designed to mimic, as much as possible, fnancial problems that you will confront in your personal and professional life. While I provide detailed solutions to the problems, I strongly encourage you to frst work the problems without looking at the solution. Even if your answer is incorrect or you are unable to even come to a solution, there is value to just thinking about how to solve the problem. PROBLEM SETSThe goal of the problem sets is to provide you the opportunity to practice and apply your skills. The problem sets do not count towards your grade. How much you want to practice, i.e., how many problems you do, is entirely up to you. Some people like a lot of problems, others dont. I wanted to make sure to ofer a large number of problems for those of you who want the extra practice. Problem sets will be available Tuesdays at noon, Eastern Daylight Time, to give you time to familiarize yourself with the lectures before attempting the problem sets. Answers for, and explanations of, the problem sets will be posted at the beginning of each week, on Monday morning, after the deadline for the problem set.ASSESSMENTThere will be an exam at the conclusion of the course (after Week 4). The format will be somewhat similar to that of the problem sets, which ofer the best form of preparation.Course Topic OutlineTopic 1: Time Value of Money1.1 Intuition, tools, and discounting, Problem Set 1.1 1.2 Compounding, Problem Set 1.2 1.3 Useful shortcuts, Problem Set 1.3 1.4 Taxes, Problem Set 1.4 1.5 InfationTopic 2: Interest Rates 2.1 APR and EAR, Problem Sets 2.1 2.2 Term Structure, Problem Sets 2.2Topic 3: Discounted Cash Flow Analysis (DCF)3.1 Decision Making3.2 Free Cash Flow, Problem Set 3.2 3.3 Forecast Drivers3.4 Forecasting Free Cash Flow3.5 Decision Criteria3.6 Sensitivity AnalysisTopic 4: Return on Investment4.1 Return on Investment, Problem Set 4.1Course ScheduleThe following schedule partitions the modules so that the video duration is roughly uniform over the four weeks. Week 1:1.1 Intuition, tools, and discounting: Video (14 min)1.2 Compounding: Video (8.5 min), 1.3 Useful shortcuts: Video (13.5 min), 1.4 Taxes: Video (8.5 min), Practice Problems: Problem Set 1.1,Problem Set 1.2Week 2:1.5 Infation: Video (10.5 min)2.1 APR and EAR: Video (12.5 min) 2.2 Term Structure: (15 min), 3.1 Decision Making: Video (8.5 min)Practice Problems: Problem Set 1.3, Problem Set 1.4Week 3:3.2 Free Cash Flow: Video (13 min), 3.3 Forecast Drivers: Video (15 min)3.4 Forecasting Free Cash Flow: Video (21 min)Practice Problems: Problem Set 2.1, Problem Set 2.2Week 4:3.5 Decision Criteria: Video (10 min)3.6 Sensitivity Analysis: Video (20 min)4.1 Return on Investment: Video (17 min), Practice Problems: Problem Set 3.2, Problem Set 4.1 FINAL EXAM You must score 50% or greater on the fnal exam to pass the course.