UNIVERSITY OF WATERLOO

ECON 371: Business Finance 1

Comprehensive Revision Guide and Notes 2026

Part 01: Revision Notes

Part 02: Sample Examination

Part 03: Suggested Solutions to Exam Paper

Part 04: Study Tips for Students

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University of Waterloo - ECON 371: Business Finance 1 - Solutions

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University
University of Waterloo
Study Level
Undergraduate
Course Code
ECON 371
Course Name
Business Finance 1
Notes Title
Comprehensive Revision Guide and Notes
Page Length
63

ACADEMIC YEAR 2026 - 2027

Prepare for ECON 371: Business Finance 1 at the University of Waterloo with a clear, complete guide for the exam. The guide covers every examinable topic and explains key concepts in simple language, so you can revise faster and retain more. Inside, you’ll get structured revision notes, worked examples, and exam-style questions with full solutions and step-by-step workings. You’ll also find practical guidance on timing, common mistakes, and what exam markers look for, helping you turn revision into marks on the day. Note: Students can request a paperback version at checkout.

ECON 371: Business Finance 1

ECON 371 explores decisions faced by managers of firms. In particular, decision-makers must determine which long-term real investment opportunities to exploit. Once undertaken, managers must decide how to finance the projects, for example, by debt or equity. The course develops both the conceptual framework and the tools required for these decisions. It covers key topics essential to understanding financial decision-making in business, and assuming prior familiarity with probability, expected values, and variance.

The course introduces the fundamentals of business finance, focusing on the role of corporate finance and the financial manager. It also explores financial statement analysis, interest rates, and the valuation of cash flows. Students will learn about the valuation principle, the time value of money, and how interest rates affect financial decisions. The course also covers the valuation of bonds and stocks, as well as the fundamentals of capital budgeting, providing a comprehensive foundation in business finance.

UNIVERSITY OF WATERLOO

Studying for another course? Select a course below to review the resource details and what’s included.

COURSE CODE	COURSE NAME
AFM 101	Introduction to Financial Accounting
AFM 102	Introduction to Managerial Accounting
AFM 231	Business Law
AFM 272	Global Capital Markets and Financial Analytics
AFM 273	Financial Instruments and Capital Markets
AFM 274	Introduction to Corporate Finance
AFM 275	Corporate Finance
AFM 280	Introduction to Organizational Behaviour
AFM 291	Intermediate Financial Accounting 1
AFM 322	Derivative Securities
AFM 391	Intermediate Financial Accounting 2
ECON 101	Introduction to Microeconomics
ECON 102	Introduction to Macroeconomics
ECON 201	Microeconomic Theory for Business and Policy
ECON 221	Statistics for Economists
ECON 290	Models of Choice in Competitive Markets
ECON 322	Econometric Analysis 1
ECON 323	Econometric Analysis 2
ECON 371	Business Finance 1
ECON 372	Business Finance 2
ECON 423	Time Series Econometrics
MGMT 244	Principles of Marketing
PSYCH 292	Basic Data Analysis
STAT 202	Introductory Statistics for Scientists
STAT 443	Forecasting

MITCA

Updated for 2026

University of Waterloo - ECON 371: Business Finance 1 - Solutions

INFORMATION

COURSE DESCRIPTION

RELATED COURSES

University	University of Waterloo
Study Level	Undergraduate
Course Code	ECON 371
Course Name	Business Finance 1
Notes Title	Comprehensive Revision Guide and Notes
Page Length	63