Business Finance Outline
Business Finance Outline
(Islamabad Campus)
Department of Management Sciences (Graduate Studies)
Course Title:
Business Finance
CATALOGUE DESCRIPTION
Credit Hours: Three (3) Semester: 2nd Semester Instructor: Annam Ahsan Class: MBA Section: A & B
COURSE DESCRIPTION
Business Finance is an introductory course in financial management. This course introduces the students to the fundamentals of business finance. The course requires an understanding of basic mathematical and economic concepts as well as accounting principles. Business Finance seeks to build a theoretical foundation and practical understanding for framing and analyzing financial decisions within firms. The course will aim to touch upon as many different facets of business finance as possible. The students will gain an appreciation of the financial context within which personal and business decisions are based. They will be able to distinguish amongst the different areas of finance and weigh what factors and issues need to be addressed in each. By the time the course is complete, the students should have a basic understanding of most major financial decisions of a business.
COURSE OBJECTIVES
The main objectives of this course are: To introduce the basic concepts and theories of financial management. To develop an appreciation for the usefulness of these theories for financial decision-making. To develop the student's financial decision-making skills.
COURSE OUTCOMES
Through a combination of readings, lectures, class discussions, and problem assignments, students will: Achieve an understanding of the role of the financial manager. Understand the financial environment in which business decisions are made. Understand and apply basic time value methodology to general valuation cash flow applications. Develop a knowledge of Bond & Stock valuation and analysis techniques Gain an awareness of the investing and financing alternatives available to the firm. Interpret the Financial Ratios of a firm Be able to use Capital Budgeting Techniques (NPV & IRR) for evaluating Capital investments & selecting the most feasible.
Bahria University
(Islamabad Campus)
Department of Management Sciences (Graduate Studies)
ASSESSMENT EVALUATION
Students assessment will be based on their ability to demonstrate their understanding of the concepts and theories learnt in the course. Students will be evaluated on the basis of a demonstration of their ability to forecast the financials, do break-even analysis, and valuation of a new venture. They will be required to show skills to develop a complete business plan. ITEM 1 2 3 4 5 ASSESSMENT TASK Final Examination Mid-Term Examination Quizzes Final Project Individual Assignments WEIGHT 40% 25% 15% 10% 10% TOTAL MARKS 40 25 15 10 10
GRADE: A B+ B C+ C D F
SCORES OBTAINED: 87 % 80 86 % 72 79 % 66 71 % 60 65 % 50 59 % 50 %
TEACHING METHODOLOGY
The teaching methodology for this course will primarily be lecture based, with significant class interaction. However, this method will be supplemented with a range of other teaching methodologies as well. Mini Cases/Readings to be used as class readings as well as assignments Project/Case study Analysis Question Practice Sessions Quizzes, both announced and unannounced.
Attendance:
Minimum 75% attendance is required. This is student responsibility to follow up on what they may have missed due to absence from a teaching session through interaction with fellow students who attended the class.
Late Submission:
There will be no retake of a quiz that a student misses. Late submission of assignments and case analysis is discouraged and will be penalized by 10% of the assigned marks for each day of late submission.
Bahria University
(Islamabad Campus)
Dishonest Practice and Plagiarism:
Students are expected to avoid plagiarism. Plagiarism involves to claim some one else work as ones own. The fact that a student might do it unintentionally still constitutes plagiarism and hence is strictly prohibited. Students are expected to take reasonable care to ensure originality of their work. The existence of plagiarism will result in zero marks on the assignment and will be notified to Head of Department for further disciplinary actions.
Bahria University
(Islamabad Campus)
8 Financial Statements; Introduction and Analysis Overview of Financial Statements Purpose of Financial Statements Types of Financial Statements Cash Flow Statement Risk and Rates of Return
What is risk What is return Risk of a single asset Risk of a Portfolio Relationship between risk and return
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Capital Budgeting Techniques Introduction to Capital Budgeting Payback Period Net Present Value Capital Budgeting Techniques Internal Rate of Return Project Evaluation & Selection Practice Session Quiz Working Capital Management Cost of Capital Concept of weighted average cost of capital Cost of debt, cost of preferred stock, cost of retained earnings, cost of new common stock Calculation of weighted average cost of capital Ratio Analysis Liquidity Ratios Leverage Ratios Efficiency Ratios Profitability Ratios Equity Ratios Presentations Revision