Course Code: YBUSFIN
Course Name: Business Finance
Instructors:
Required Text: Brigham, Eugene F. and Houston, Joel F. 2004. Fundamentals of financial Management. 10th Edition. Thomson Learning Inc.
Course Description: This course covers the concepts, principles and practices of financial management. It also includes the following topics:
namely: a) forms of business organization; b) analysis of
financial statement; c) tools and techniques in financial analysis;
d) methods used in forecasting the financing requirements of a firm along with the time value of money; and e) capital projects and methods in determining their inclusion in a firm’s capital budget.
Topic Outline Estimated
Contact Hours
An Overview of Financial Management a) Career Opportunities in Finance
b) Financial Management in the New Millennium c) Alternative Forms of Business Organization d) Finance in the Organizational Structure of the Firm e) Financial Staff’s Responsibilities
f) Goals of the Corporation g) Business Ethics
h) Agency Relationships
i) Managerial Actions to Maximize Shareholder wealth j) Managerial Actions to Maximize Earnings per Share.
Financial Management, Cash Flow and Taxes
a) Brief History of Accounting and Financial Statements b) Financial Statements and Reports
c) Balance Sheet d) Income Statement
e) Statement of Retained Earnings f) Net Cash Flow
g) Statement of Cash Flow
h) Modifying Accounting Data for Managerial Decisions.
i) Market Value Added j) Economic Value Added
Analysis of Financial Statements a) Ratio Analysis
b) Liquidity Ratios
c). Asset Management Ratios d) Debt management Ratios e) Profitability Ratios f) Market Value Ratio g) Du Pont Analysis
h) Comparative Ratios and Benchmarking i) Uses and Limitations of Ratio Analysis
Time Value of Money a) Time Lines
b) Future Value c)Present Value
d) Solving for interest rate and Time e) Future Value of an Annuity f) Present Value of an Annuity g) Perpetuities
h) Uneven Cash Flow Streams
i) Semiannual and other Compounding Periods j) Fractional time Periods
k) Amortized Loans
The Basics of Capital Budgeting a) Importance of Capital Budgeting b) Generating Ideas for Capital Projects c) Project Classification
d) Capital Budgeting Decision Rules
e) Comparison of Net Present Value and Internal rate of Return
f) Modified Internal rate of Return
g) Conclusion on Capital budgeting Methods h) Post Audit
Other Topics in Capital Budgeting a) Comparing Projects with unequal lives b) Introduction to Real Options
c) Abandonment/shutdown Options d) Investment Timing Options e) Growth Options
f) Flexibility Options
g) The Optional Capital Budget
Recap
Estimated Identification of CPC Topics Covered in this Course: Contact Hours*
Accounting Marketing Finance Management
Organizational Behavior Human Resource Management Operations Management Economics
Business Ethics Information System
Quantitative Methods/Statistics
International/Global Dimensions of Business Capstone
Total (estimate of contact hours)
