Professional Course

Foundations of Modern Finance I

edX, Online
12 weeks
450 USD
Next course start
18 September, 2024 See details
Virtual Classroom
12 weeks
450 USD
Next course start
18 September, 2024 See details
Virtual Classroom
Visit this course's homepage on the provider's site to learn more or book!

Course description

Foundations of Modern Finance I

This is a two-part course, and part of the MicroMasters® Program in Finance. It provides a rigorous and comprehensive introduction to the fundamentals of modern finance and their applications to business challenges in valuation, investments, and corporate financial decisions under a unified framework.

Completing this first course and program will help you prepare for a career as a financial analyst, financial advisor, vice president for finance, chief financial officer, and more.

Finance provides a core function in any productive economy by providing a mechanism for savings, investment, and liquidity. Whether the learner is in a industrialized country or a developing country, financial services are essential for smooth functioning of the economy.

Upcoming start dates

1 start date available

18 September, 2024

  • Virtual Classroom
  • Online
  • English

Who should attend?


  • Basic Probability and Statistics;
  • Calculus

Training content

Introduction to Finance

  • Financial decisions of households and corporations
  • Approaches to valuing financial and real assets
  • The role and the overview of financial markets
  • Financial Frictions
  • Unifying principles of finance

Market Prices and Present Value

  • State-space model for time and risk
  • Security prices, state prices and arbitrage pricing
  • Present Value (PV) and future value
  • Discount rates, time value and risk premium: a historic perspective
  • Compound interest
  • Annuity and perpetuity formulas

Fixed Income Securities

  • Fixed-income markets
  • Term structure of interest rates
  • Properties of bond prices and market conventions
  • Inflation and real rates

Common Stocks

  • Discounted Cash Flow (DCF) model
  • Gordon model, multi-stage growth model
  • EPS, P/E, PVGO


  • Decision under uncertainty and expected utility theory
  • Risk aversion
  • Diversification and portfolio analytics
  • Systematic and idiosyncratic risks

Factor models and Arbitrage Pricing Theory (APT)

  • Factor models for risk
  • APT
  • Applications of APT

Market Efficiency

  • Efficient Market Hypothesis (EMH)
  • Implications of EMH
  • Empirical evidence on EMH

Introduction to Corporate Finance

  • Corporate financial decisions
  • Opportunity cost of capital and NPV
  • Financial objective of corporate managers

Capital Budgeting

  • NPV rules
  • Cash flow calculations
  • Alternatives to NPV
  • Project interactions
  • Capital budgeting and discount rates

Course delivery details

This course is offered through Massachusetts Institute of Technology, a partner institute of EdX.

10-14 hours per week


  • Verified Track -$450
  • Audit Track - Free

Certification / Credits

What you'll learn

  • Valuation of fixed income securities and common stocks
  • Risk analysis, the Arbitrage Pricing Theory (APT), and the Efficient Market Hypothesis
  • Introduction to corporate finance and capital budgeting
  • Valuation of derivative securities
  • Portfolio theory and the Capital Asset Pricing Model (CAPM)
  • Corporate financial decisions
    • Real options, capital structure, payout policy, corporate bonds; and
    • Interaction between investment and financing decisions

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141 Portland Street
02139 Cambridge Massachusetts


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