COMSATS University Islamabad,

Sahiwal Campus

Course Outline & Lecture Plan

Business Finance
MGT232

Faculty of Business Administration

Department of Management Sciences
 Integrated Marketing Communications (MGT513)

Course Information

Course Title: Business Finance Course Code: MGT232

Program: BBA Semester: 2nd
Teacher Name: Dr. Minhas Akbar E-mail: [email protected]

A: Description
This course is designed to outline the key concepts of basic finance and their application by the finance
manager in a corporate setting. The main parts of this course entails evolution of finance, financial
analysis techniques, capital budgeting process, short term and long term financing, and financial
forecasting. This course will assist the students to systematically think about the financial problems that
financial managers are likely to confront, an efficient grasp about the tools of financial management and a
working ability to make financial decisions.

B: Prerequisites
The students who have studied Accounting I MGT130 can take this course.

C: Learning Objectives
The primary goal of Financial Manager is to maximize the share-holder’s wealth. It is a simple goal to
state, but this one semester course is an effort to investigate how such a goal can be achieved by the
financial manager. The financial manager/ analyst must be able to interpret and analyze the financial
statements, and to plan actions to meet future challenges. The course will also introduce the basic
concepts and analytical techniques required by financial manager for managing and financing firm’s short
term assets, forecasting and evaluating the cash flows, capital budgeting and financing decisions.

D: Learning Outcomes
At the completion of this course students can;
 Articulate the primary goal in a publicly traded firm (i.e. wealth maximization),
and explain how agency problems may stand in the way of accomplishing this
goal.
 Use the concept of time value of money in financial decision making
 Use the concepts of Weighted cost of capital in making financing decisions
 Use basic financial techniques to value real and financial assets.
 Apply the capital budgeting techniques to assess investment projects
 Identify the tools for financial decision making in a multinational enterprise
 Apply valuation methods to evaluate financial assets, real assets, and
companies

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 Integrated Marketing Communications (MGT513)

E: Teaching and Learning Strategies

The Course of business finance is designed to endow the students with conceptual skills to help
prepare them to be valuable and learned financial manager in an organizational setting. The
learning is based on the combination of textbook readings, attending lectures, discussion
sessions, research article, case studies, practical projects etc.

F: Books and Resources

Recommended book:
 Foundations of Financial Management by Stanley B. Block, Geoffrey A. Hirt, and Bartley
R. Danielsen 16th Edition.

Other Recommended Readings:

 Brigham and Gapenski, Financial Management, Theory and Practice.

 Gitman, Principles of Managerial Finance 9th Ed

G: Assessment Scheme
Assessment Percentage
Quiz/Assignment 25%
Mid-term exam 25%
Final Exam 50%

H: Outline and Lecture Plan

Weeks Lecture Topics Evaluation Remarks

1 1 An Overview of Financial Management

2 The Goals and Activities of Financial Management

The Role of Financial Markets

2 3 Financial Planning
4 Four Basic Financial Statements Quiz 01
3%
3 5 Introduction to cash flow statement

6 Financial Analysis - Ratio Analysis Assignment 01

3%
4 7 Ratio Analysis and their importance in business
8 Classification of ratios
5 9 Classification of ratios (contd.)
10 Trend Analysis
6 11 Horizontal and vertical analysis Quiz 02

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 Integrated Marketing Communications (MGT513)

4%
12 Impact of Inflation on Financial Assignment 02
Analysis 4%
7 13 Other Elements of Distortion in Reported
Income
14 Financial Forecasting – Pro forma financial
statements
8 15 Cash Budget – Pro Forma Balance Sheet
16 Percent-of-Sales Method Quiz 03
3%
9 17 25%
Mid Term Exam
18
10 19 Operating and Financial Leverage - Leverage in a
Business
20 Operating Leverage - Break-Even Analysis Assignment 03
3%
11 21 Financial Leverage - Limitations to Use of Financial
Leverage
22 Degree of Combined Leverage
12 23 Working Capital and the Financing Decision -
Controlling Assets, Matching Sales and Production
24 Patterns of Financing - The Financing Decision
13 25 Shifts in Asset Structure - Toward an Optimal Policy Quiz 04
3%
26 Current Asset Management - Cash Management -
Collections and Disbursements
14 27 Management of Accounts Receivable - Inventory
Management
28 Economic Ordering Quantity - Just-in-Time Assignment 04
Inventory Management 2%
15 29 Sources of Short-Term Financing - Trade Credit -
Bank Credit
30 Financing through Commercial Paper - Foreign
Borrowing
16 31 Use of Collateral in Short-Term - Accounts
Receivable Financing
32 Inventory Financing - Hedging to Reduce
Borrowing Risk
17 Final term 50%

Prepared By
(Course Instructor)
Dr. Minhas Akbar

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