ACC501 : Business Finance

Course Overview

Course Synopsis

Business Finance is all about the basic principles and concepts used in the financial matters of an enterprise. The main objectives of this course include developing proficient financial managers who would be comfortable in acquiring new skills as and when required, introducing the key topics including capital markets, financial ratio analysis, financial management of working capital, time value of money, bonds and stocks valuation, capital budgeting, capital structure, cost of capital, and short-term and long-term financing by means of debt and equity capital, and demonstrating to the students the important reasons for understanding financial techniques.

Course Learning Outcomes

Upon successful completion of this course, students will be able to:

  • Recognize the contents and uses of financial statements.
  • Evaluate different investment proposal keeping in view the concept of time value of money, risk and returns.
  • Valuate the different types of securities such as common stocks, preferred stocks and bonds.
  • · Assess the financial viability of capital investment projects by using different capital budgeting techniques.
  • Identify the sources and types of funding available to businesses along with the benefits and costs of each source.
  • Comprehend the tools and techniques used in Cash Budgeting
  • Recognize the basics of Cash, Credits & Receivables Management and recognize some important aspects of Inventory Management.


Course Calendar

1 Introduction
2 Need and Importance of Business Finance
3 Business Organisations
4 Financial Markets and Financial Statements
5 Income Statement and Taxes
6 Financial Flow and Cash Flow Statement
7 Cash Flow Statements
8 Financial statement Analysis
9 Ratio Analysis
10 Ratio Analysis - continue
Graded Discussion Board - GDB
11 The Du Pont Identity
12 Using Financial Statement Information
13 Present Value Concept
14 Discounted Cash Flow Valuation
15 Annuities cash Flows
Quiz No. 1
16 Perpetuities
17 Bonds
18 Valuing Bonds
Assignment
19 Bond price Theorems
20 Bond Indenture
21 Different Types of bonds
22 Determinants of Term Structure
Mid Term Exam
23 Some Special Cases in Stock Valuation
24 Non-constant Growth Stocks
25 Preferred Stock Features
26 Net Present Value
27 Average Accounting Return
28 Capital Budgeting
29 Making Capital Investment Decisions
30 Pro Forma Financial Statements (Cont.)
31 Depreciation (Cont.)
Quiz No. 2
32 Returns
33 Variability of Returns (Cont.)
34 Portfolio (Cont.)
Quiz No. 3
35 Cost of Capital
36 Weighted Average Cost of Capital
37 Capital Structure
38 Business and Financial Risk
39 Bankruptcy Costs, Static Theory of Capital Structure
40 Operating Cycle and Cash Cycle
41 Short-Term Financial Policy
42 Short-Term Borrowing
43 Float and Cash Management
44 Credits and Receivables
45 Inventory Management
Final Term Exam