Home > Introduction to Business Finance

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:

  1. Fundamentals of Financial Management
  2. by Ramesh K. S. Rao
  3. Macmillan Publishing Company
  4. International Edition:
  5. A. Stevenson, ‘‘Fundamentals of Finance’’, McGraw-Hill,
  6. Latest Edition.
  7. H. Chew, JR, ‘’The New Corporate Finance’’ , McGraw-Hill
  8. Second Edition.
  9. Eugene Brigham, “Fundamentals of Financial Management” , Duden Press,
  10. Harcourt Bare College Publisher