Riphah International University, Lahore Campus
Faculty of Management and Social Sciences
Finance for Engineers
Spring 2020
Course Instructor Ahsan Ahmed, Sr. Lecturer Department FMS
Course Instructor’s e-mail
[email protected] Level MS
Contact No Course Code
Pre Requisite Finance for Engineers No. of Credits 3
Course Code MEM5303
Duration 16 weeks including revision week and examinations week.
Class Session Class meets once a week, as per time table
Course Objectives
This course aim at enabling a student understands the scope and importance of accounting and
finance from the point of view of entrepreneurs and business managers. Particularly, to introduce
the students to the:
o Finance function, role of financial manager, nature of financial decisions
o Time value of money, its permutations and implications
o Sources and cost of finance, the relative importance of each source
o Capital structure of a company, its significance
o Valuation of known cashflows (bonds), and fluctuating cashflows (stocks)
o Risk Analysis
o Cash management and working capital management
Statement of Academic Dishonesty:
Academic dishonesty is an absolutely unacceptable mode of conduct and will not be tolerated in
any form. All persons involved in academic dishonesty will be disciplined in accordance with
University regulations and procedures.
I hope that you will get good grades in the subject, but it all depends on your efforts not on my
hopes.
Evaluation
1. Mid Term 30%
2. Assignments/Presentations and Project report 30%
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3 Final Exam 40%
Riphah International University, Lahore Campus
Faculty of Management and Social Riphah School of Business and Management
Financial for Engineers
Spring 2020
Contents
Session Topic
What is Finance All About?
Week 2 Week 1
Major Decisions in Finance
Forms of Business Ownership
Time Value of Money Fundamentals
Time Value of Money (Practical Examples)
Week 5 Week 4 Week 3
Time Value of Money-Annuities and Perpetuities (Concepts)
Time Value of Money-Annuities and Perpetuities (Practical Examples)
Sources and Cost of Finance
Common Stock
Sources and Cost of Finance (Cont.)
Preferred Stocks
Cost of Preferred Stocks
Weighted Average Cost Capital (WACC)
Week 6
Book Based Measure
Market Based Measure
Dividend Policy
Week 7
Theories on Dividend
Dividend Discount Models for financial Assets Valuation
Week 8
Mid Term
Week 9
Evaluation of Capital Projects / Expenditure
Capital Budgeting Techniques Fundamentals
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Cash flows Estimation
Week 10 Capital Budgeting Techniques
Pay Back Period
Capital Budgeting Techniques (Cont.)
Week 11
Internal Rate Return
Profitability Index
Week 12
Cash Management
Week 13
Cash Budget
Week 14
Working Capital Management
Week 15
Receivables Management
Week 16
Final Term
Note: Maximum material is available in soft form.
Required Readings
Fundamentals of Financial Management, by James C Van Horne
Suggested Supplementary Text
Fundamentals of Financial Management, by E. F. Brigham and J. Houston
Financial Management, by C. Paramasivan and T. Subramanian
Assignments
An assignment will be given on fortnightly basis and it is expected that all students will submit the
same in the week following the distribution of assignment. Non submission of assignment will
result in ZERO mark.
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