UNIVERSITY OF WATERLOO 
ECON 371: Business Finance 1 
Comprehensive Revision Guide and Notes 2025 
 
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)

C$35.00

ACADEMIC YEAR 2024 - 2025

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	64

Are you feeling overwhelmed as you prepare for the final exam in ECON 371: Business Finance 1 at the University of Waterloo? This all-in-one study guide is designed to help you succeed by providing thorough revision materials tailored to the course. Inside, you'll find concise and well-organized notes, practice exam questions with step-by-step solutions, and expert tips to boost your exam performance. Whether you're brushing up on key concepts or practicing problem-solving techniques, this guide provides the tools you need to excel.

- What’s Inside:

Detailed Study Notes: Clear, well-structured summaries covering all key topics, making complex concepts easier to understand.
Practice Exam Questions: Test your knowledge with questions that reflect the style and difficulty of the actual final exam.
Step-by-Step Solutions: Complete solutions with explanations to help you identify weak areas and strengthen your understanding.
Exam Strategies: Practical tips and strategies to boost your confidence and optimize your performance during the exam.

- Why This Guide Will Help You Succeed:

Simulate the Exam Experience: Practice with realistic questions to get familiar with the exam’s structure and challenge level.
Study Efficiently: Focus your efforts with concise, targeted materials crafted specifically for ECON 371.
Master Key Concepts: Strengthen your problem-solving abilities with detailed solutions and helpful explanations.
Gain an Edge on Exam Day: Use proven strategies to manage time effectively and approach questions with confidence.

This course 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. The course assumes prior familiarity with probability, expected values, and variance.

The course covers key topics essential to understanding financial decision-making in business. It 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.

Prereq: ECON 101 or ECON 100/COMM 103; ECON 221 or any prior course in probability and/or basic statistics; Level at least 2B.

Antireq: AFM 271/273, AFM 274/371.

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

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

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