Introduction

Welcome Message

Hello and welcome to the course! My name is Kevin, and I’m both the author of the textbook we’ll be using and your instructor for this class. I’m excited to guide you through this journey, and I want to start by sharing a bit about myself to help you feel comfortable and connected.

My professional path began in Silicon Valley, where I worked as a software engineer and quickly moved into leadership roles, managing global teams and launching innovative products. After years of experience in startups and corporations, I decided to pursue an MBA at the University of Oxford, which broadened my horizons and gave me a global perspective on business and finance.

Over the years, I’ve explored entrepreneurial ventures, including a thriving Airbnb business and house flipping projects. These days, I’m focused on helping Americans find their dream homes in Mexico, assisting them with purchasing and remodeling properties to create vacation homes or permanent residences. I’m also working on developing boutique hotels in Mexico, blending my love for travel and design with my entrepreneurial spirit.

Speaking of travel, it’s one of my greatest passions. I’ve visited over 80 countries, from hiking in Norway and Argentina to relaxing on the stunning beaches of the Maldives. I’ve had the privilege of earning elite status with airlines, hotels, and credit cards, which has taught me how to travel luxuriously without overspending. I’m always happy to share tips on earning rewards, getting upgrades, and making the most of travel perks, so don’t hesitate to ask!

But the most meaningful part of my life now is being a father. I have two wonderful toddlers, Luana and Ono, who are my new inspiration and the motivation behind this book. Their curiosity and energy remind me to keep learning and growing every day. I’m dedicating this book to them in the hope that it will inspire others to embrace knowledge and opportunities with the same joy and enthusiasm.

I’d also like to express my gratitude to Professor Jose Nava at Foothill College, whose encouragement and support inspired me to write this book. His guidance has been invaluable, and I hope to bring the same level of dedication and support to you throughout this course.

This course and textbook are designed to make finance relatable and practical, helping you connect concepts to real-world applications. Whether you’re here to enhance your personal finances, work toward career goals, or simply explore the subject, I’m here to help every step of the way.

Let’s make this quarter both productive and enjoyable, and I’m looking forward to getting to know each of you!

Purpose of the Textbook

This textbook was created with three goals in mind:

1. • Making Knowledge Accessible

Education should be a right, not a privilege. I’ve seen students struggle with the financial burden of expensive textbooks—some even dropping classes because they couldn’t afford the materials. That’s why I decided to write this book: to provide a resource that eliminates this barrier and ensures everyone has access to the knowledge they need to succeed.

• • Tailoring the Content

As an instructor at a community college, I understand that not all textbooks are written with our students in mind. Many are too advanced or don’t align with the content we teach. This textbook is designed specifically for you, with clear language, practical examples, and a focus on making finance relatable and applicable to your life and goals.

• • Room for Innovation

This textbook is not the final version—it’s just the beginning. By having ownership of the material, I can continuously improve and adapt it to your needs. I’m also exploring ways to integrate new technologies like artificial intelligence and virtual reality to make learning more interactive and fun. While those features aren’t here yet, they are part of the vision for this evolving resource.

I hope this textbook makes your learning experience more enjoyable, accessible, and relevant to your journey.

Course Overview

This course is designed to give you a practical foundation in finance, focusing on understanding key concepts and applying them to real-world scenarios. Here’s a high-level look at what we’ll cover:

Chapter-by-Chapter Highlights

1. 1. Introduction to Financial Management: Learn the basics of financial decision-making and its importance in personal and business contexts. This chapter sets the foundation for the course.
   2. Financial Statement Analysis: Understand how to interpret financial statements to assess a company’s performance. This chapter emphasizes practical tools for analyzing financial health.
   3. Time Value of Money Intro (Key Chapter): Grasp the foundational concept that money today is worth more than the same amount in the future. This chapter is pivotal for understanding later topics and will be a focus throughout the course.
   4. Interest Rate: Explore how interest rates are determined and their impact on financial decisions. A deeper dive into a key factor influencing finance.
   5. Time Value of Money: Valuing Cash Flow Streams (Key Chapter): Apply the time value of money to analyze cash flows over time. A cornerstone chapter that connects directly to several advanced topics.
   6. Bond: Delve into how bonds work, including pricing, yields, and risks. Bonds are a foundational investment vehicle introduced here.
   7. Stocks and Stock Valuation (Key Chapter): Learn how to value stocks using various models and understand the factors influencing stock prices. This chapter builds directly on prior valuation concepts.
   8. Risk and Return (Key Chapter): Discover the relationship between risk and expected returns, a key principle in investing. The material ties back to earlier discussions of valuation and decision-making.
   9. Systematic Risk and Equity Risk Premium: Understand how risk is measured and its role in equity pricing. This chapter provides advanced insights into market behaviors.
   10. Cost of Capital (Key Chapter): Learn how companies evaluate their costs of financing and why it matters for decision-making. This chapter integrates concepts from earlier weeks.
   11. Introduction to Capital Budgeting: Explore the methods used to evaluate investment opportunities. This chapter serves as the culmination of many prior topics.

Alignment with the Quarter

• • 12-Week Format: Each chapter will be covered in order over the first 11 weeks, with the final week (Week 12) reserved for an exam or project that ties all concepts together.
  • 6-Week Format: Each week will cover two chapters in order, doubling the load but maintaining the same emphasis and flow.

Student Takeaways

This course isn’t about memorizing formulas or definitions—it’s about understanding financial concepts and learning to apply them in meaningful ways. By the end of the course, you will:

• • Develop a solid foundation in key financial concepts and tools.
  • Be able to think critically and logically about financial decisions.
  • Apply financial principles to solve problems beyond finance, training your rational and logical thinking skills.
  • Be inspired to use what you’ve learned to approach real-life challenges with confidence and clarity.

Learning Objectives

This course is designed to help you build practical financial skills and develop a strong understanding of key concepts. Here’s what you’ll achieve by the end of the quarter:

1. 1. Gain the ability to evaluate financial statements and make informed business decisions.
   2. Understand the time value of money and apply it to everyday financial and business scenarios.
   3. Learn how to assess and value investment vehicles like stocks and bonds.
   4. Apply financial techniques such as net present value (NPV) to evaluate capital investments.
   5. Develop a clear understanding of risk, return, cost of capital, and diversification.
   6. Apply these principles to real-world situations, including case studies and entrepreneurial projects.

With these objectives in mind, the textbook and course materials are designed to ensure you have the tools you need to succeed—not just in this class, but in applying finance to your future goals.

Student Expectations

Welcome to the course! I want to start by saying that I’ve designed this class to help you succeed. Getting a good grade isn’t about being a math genius or knowing everything off the bat—it’s about staying focused, putting in the effort, and paying attention to the details. If you commit to these, you’ll find it easy to do well.

Here’s how you can make the most of this class:

• • Build a Habit of Consistency

Treat this class like a marathon, not a sprint. Engage with the material regularly—whether it’s reading, participating in discussions, or completing assignments. Small, consistent efforts add up to big results.

• • Don’t Procrastinate

Avoid waiting until the last minute to work on assignments. Things always come up when you least expect them, and rushing leads to stress and mistakes. Start early, take your time, and approach tasks with a clear mind.

• • Connect the Dots

This class isn’t just about memorizing formulas or definitions. It’s about applying what you learn to your life. Whether it’s thinking about your finances, solving problems, or planning for the future, these concepts are tools you’ll use long after the course ends.

• • Learn from Each Other

Your classmates bring unique perspectives and experiences. Read their discussion posts, ask them questions, and collaborate when possible. Sometimes, you’ll learn as much from each other as you do from the textbook.

• • Ask Questions Without Fear

If something doesn’t make sense, ask! There’s no such thing as a bad question in this class. I’m here to help, and asking questions is one of the best ways to deepen your understanding.

• • Stay Focused on the Goal

My goal is to help you learn something meaningful and useful for the rest of your life—not to make you struggle unnecessarily. I’ve designed this class so that good grades are within reach for everyone, as long as you put in the effort. Pay attention to the details, stay diligent, and you’ll find success.

Remember, this class is a partnership. I’m here to support you, and I want to see you thrive—not just in this course but in everything you pursue. Let’s make this a great experience together!