Introduction to Business Finance
MBA – III
DBA – 611
1. An overview of Business Finance
- GAAP revisited
- Basic Finance Statement
- Legal Forms of Organization
2. Corporation defined: Advantages and Disadvantages
- Formation of a Corporation
- Capital Stock, Authorization and Issuance
- Rights of a Shareholder
- Common and Preferred Stocks
- Types of Preferred Stocks
- Payment of Dividends
3. The Firm’s Investment Decision
- An overview of the Capital Budgeting Process
- Capital Budgeting Techniques
- Payback Period
- Accounting rate of return (ARR)
- Net Present value (NPV)
- Internal Rate of Return (IRR)
- Profitability Index (P/I)
- Sensitivity Analysis
4. The Time Value of Money
- Compounding and discounting
- Finding Future and Present Values
5. Financial Ratio Analysis
- Types of Financial Ratios
- Uses of Financial Ratios
- Determination and Interpretation
- Limitations of Ratios
6. Working Capital Management
- The Importance of Working Capital
- Short-term Finance Decision
- Deciding on an Appropriate WC Policy
Recommended Books:
- Fundamentals of Financial Management
- by Ramesh K. S. Rao
- Macmillan Publishing Company
- International Edition:
- A. Stevenson, ‘‘Fundamentals of Finance’’, McGraw-Hill,
- Latest Edition.
- H. Chew, JR, ‘’The New Corporate Finance’’ , McGraw-Hill
- Second Edition.
- Eugene Brigham, “Fundamentals of Financial Management” , Duden Press,
- Harcourt Bare College Publisher