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Business Finance - ACC501

ACC501 - Business Finance - Lecture 1

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The Primary textbook for the course is

  • Essentials of Corporate Finance, by Ross, Westerfield and Jordan, fourth edition, McGraw Hill¬†Publishers, ISBN 0-07-121057-7

Reference books will be

  • Introduction to Finance by Lawrence J. Gitman and Jeff Madura, Addison-Wesley Publishers
  • Foundations of Financial Management by Stanley B. Block and Geoffrey A. Hirt, McGraw Hill Publishers

Course Contents

  • An overview of Financial Environment
  • Financial Statements, Taxes and Cash Flows
  • Time Value of Money and Discounted Cash Flow Valuation
  • Valuation of Stocks and Bonds
  • Net Present Value and other Investment Criteria
  • Capital Investment Decision
  • Risk and Return
  • Cost of Capital
  • Leverage and Capital Structure
  • Raising Capital
  • Working Capital Management
  • Dividends

Finance: A Quick Look

  • Four Basic Areas
  • Business Finance
  • Investments
  • Financial Institutions
  • International Finance

Business Finance

Addresses the following three questions:
  • What long-term investments should the firm engage in?
  • How can the firm raise the money for the required investments?
  • How much short-term cash flow does a company need to pay its bills?

Investments

  • Deals with financial assets such as stocks and bonds.
  • It covers the following issues
  • Pricing Financial Assets
  • Associated Risks and Rewards
  • Determining best mixture of financial investment
  • Career opportunities in investment
  • Stock Brokerage
  • Portfolio Management
  • Security Analysis

Financial Institutions

  • Businesses dealing in financial matters
  • Banks and Insurance companies

International Finance

  • Covers international aspects of corporate finance, investment and financial institutions.