Business Finance (FIN 201) : International Islamic University Islamabad Faculty of Management Sciences Spring 2009
Business Finance (FIN 201) : International Islamic University Islamabad Faculty of Management Sciences Spring 2009
This is one of course in the series of Accounting and Finance related courses aimed at providing the students a comprehensive understanding of the scope and importance of accounting and finance from the point of view of entrepreneurs and business managers.
&'(ecti)es:
To introduce students to the basic concept of finance, source and use of funds. The concept of business entity and management of its financial affairs with a view to achieve its objective of net worth maximization. The course builds on the knowledge gained by the students in accounting. t now exposes them to the techni!ues of managing financial affairs of business entities "internally# and an introduction about how to finance externally#.
Evaluation Heads Assignment 4uizzes )lass ,articipation 'idterm exams Final exams 12 12 52
eek eek
7eek 1
ise S!"edule: Contents 8efinition, %cope, /ole of Finance 'anager, Financial &bjective, The 0ature of Financial 8ecisions, financing and investment decisions, Flow of funds in a business unit The Financial %ystem, Functions of financial system, The Financial 'arkets, Financial ntermediaries, /egulation of the Financial %ector nterest rate, /eal rate, 0ominal, /isk premium :8efault risk, 'aturity risk, ;i!uidity risk Analysis of Financial %tatements, /atio Analyses 'arket vs. .ook values, /eturn to shareholders vs. /eturn on -!uity, Time *alue of 'oney$ )ompounding, Fre!uency of )ompounding, ,resent *alue and 8iscounting, 8)F, 'ultiple )ash flows, Annuities, ;oan Amortization, -ffective interest rate, 8ifferent period compounding and discounting.
,roblems and !uestions relating to time value of money
7eek 6 7eek 9 7eek 5 7eek 3 7eek 3 7eek < 7eek= 7eek> 7eek @ 7eek 11
-xcel in Finance )ourse /evision? 'id Term Test 7orking capital 'anagement A An overview Accounts receivable monitoring and management. nventory management and )ontrol %ystem. %hortBterm financing? Alternate
)urrent Financing ,olicies, Advantage C disadvantage of %hort term Financing )ash flow estimation? -stimating C identifying cash flows, Tax -ffects, Analysis for )ash flows and Adjusting for nflation.
)apital budgeting? 8ecision /ules$ 0,*, //, )apital budgeting? ,ayback and ,rofitability ndex, ' //. )ost of
capital? 7A)), )ost of 8ebt, /evision, and -xcel in Finance Final -xam