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FIN 201 · Unit 1 of 6

Financial Decision Foundations

Corporate Finance

Start unit · 5 lessons →

Learning objectives

After completing this unit, you will be able to:

  • Apply frameworks from \
  • Apply the frameworks in "Financial Decision Foundations" to a real management decision
  • Make progress on your Corporate Finance applied project applied project

Why this matters

Financial Decision Foundations is essential to Corporate Finance. Lessons build fluency with anchor-company examples, worked problems, and assessments on the unit page.

Lesson

Unit overview

Complete all 5 lessons in order. Each lesson follows the program authoring standard: conceptual prose, worked examples, practice problems, and managerial judgment prompts. Finish unit exercises and the knowledge check before marking the unit complete.

Connection to applied work

This unit feeds directly into Corporate Finance applied project. As you read, capture notes, examples, and data you can reuse in that deliverable. Strong students finish each unit with a draft section of their project, not just highlights.

Practice

  1. Write a one-page summary of this unit in your own words without looking at the lesson.
  2. Find a real company example (public filing, news article, or personal experience) that illustrates the main concept.
  3. Draft one paragraph recommending an action a manager should take based on this unit.
  4. Add at least three terms from this unit to your course glossary.

Knowledge check

Answer these without notes before marking the unit complete:

  1. What is the central idea of "Financial Decision Foundations"?
  2. What mistake do beginners most often make when applying this material?
  3. How does this unit help you complete Corporate Finance applied project?
  4. What is one decision you face this month where this unit applies?

Key takeaways

  • Apply frameworks from \
  • Business concepts only matter when they change a decision.
  • Your FIN 201 assessment (Time value of money, risk and return, capital budgeting, and corporate valuation.) rewards applied understanding, not memorization.

Unit assessment

Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.

40% applied project35% knowledge checks25% reflections

Exercises

Apply what you learned in this unit with structured practice.

ExerciseApplied practice: Financial Decision Foundations45 min
Complete a focused practice exercise on **Financial Decision Foundations**. 1. Choose a real company, product, or situation you know. 2. Apply one core framework from this unit to analyze it. 3. Write your analysis in 300–500 words with a clear recommendation. 4. Cite at least one credible source.

Deliverable

300–500 word analysis document saved to your portfolio under FIN 201.

Rubric

  • • Framework applied correctly (not just named)
  • • Specific evidence from a real example
  • • Clear recommendation with tradeoffs acknowledged
  • • Professional writing with source citation
ExerciseDrill: Financial Decision Foundations30 min
Work through the practice problems in the unit lesson without looking at notes. Then check your work against the lesson and write a short reflection: - What you got right - One mistake you caught - One concept to review before the next unit

Deliverable

Problem solutions + 150-word reflection in your FIN 201 workbook.

Rubric

  • • Attempted all practice items before checking answers
  • • Honest reflection on errors
  • • Identifies a specific review action

Model / spreadsheet

Build or extend a spreadsheet model tied to this unit.

ModelSpreadsheet model: Financial Decision Foundations60 min
Build a spreadsheet model demonstrating **Financial Decision Foundations**. **Requirements:** - Separate Input, Calculation, and Output sections - Label all units ($, %, units) - Include at least one sensitivity or scenario comparison - Add a balance check or reasonableness test Use Google Sheets or Excel. Link the model to your Corporate Finance applied project project where applicable.

Deliverable

Spreadsheet file with Inputs / Model / Outputs tabs · One-paragraph summary of key insight from the model · Screenshot or export saved to portfolio

Rubric

  • • Assumptions stated explicitly
  • • Logic is auditable (formulas or steps visible)
  • • Output answers a specific business question
  • • Sensitivity or scenario considered

Knowledge quiz

Check your understanding before marking the unit complete.

1. Summit Health Systems reports $310M revenue and $52M EBITDA while drawing on its revolver in Q3. Which explanation best fits corporate finance practice?

2. David Park's capital allocation committee compares $40M term loan paydown vs urgent-care capEx. Which metric best captures shareholder value creation for the growth option?

3. Summit expects $8.2M from payers in 12 months. At a 9% required return (not 4.2% Treasury), PV is closest to:

4. Refinancing saves $560K per year for five years; fee today $1.8M. After-tax PV of savings exceeds fees at 5.85% discount. NPV is:

5. A growing perpetuity formula requires terminal growth g relative to discount rate r. Which pair is valid for Summit DCF terminal value?

6. Which mistake does Summit finance guard against when building cash forecasts?

7. If Summit DSO rises from 42 to 47 days on $310M annual revenue, approximate cash trapped in receivables:

8. Which statement best describes agency costs at Summit?

Next unit: Valuing Financial Assets →