We have the BBS 4th Year Corporate Finance Syllabus Pdf.
Course Objective
This course, “Fundamentals of Corporate Finance,” aims to provide students with a basic understanding of fundamental concepts and principles of corporate finance. This course also equips the students with fundamental concepts, tools, techniques, and theories of corporate financial management, which helps to prepare them to resolve complex financial issues of corporate firms.
Course Description
This course, “Fundamentals of Corporate Finance,” is about how effectively financial resources are raised and used in a business corporation. It helps students to learn effective management of financial resources in a corporate firm and equips them with the necessary skills to do so. This course includes the introduction to corporate finance, short-term financing, term loans and lease financing, long-term financing, hybrid financing – preferred stock, warrants and convertibles, capital structure decision, financial planning and forecasting, international corporate finance, and mergers and acquisitions.
BBS 4th Year Corporate Finance Syllabus Pdf
Following are the BBS 4th Year Corporate Finance Syllabus Pdf:
Unit 1: Introduction to Corporate Finance LH 15
Contents:
- Corporate finance and financial manager.
- Financial manager’s responsibilities: Managerial actions to maximize shareholder wealth.
- Corporate finance and other functional areas.
- The agency problem: stockholders versus managers and stockholders versus creditors.
- Ethics in financial decisions; Corporate governance and corporate social responsibilities.
Unit 2: Short-Term Financing LH 20
Contents:
- Nature of short-term financing: Advantages and disadvantages.
- Sources of short-term financing: accruals, accounts payable (trade credit), commercial paper, short-term bank loans – line of credit, revolving credit arrangement, transaction loans.
- Choosing a bank: Comparison of the cost of trade credit, commercial paper, and short-term bank loan.
- Use of security in short-term financing: inventory financing and accounts receivable financing; Factors affecting the appropriate sources of short-term financing.
Unit 3: Term Loans and Lease Financing LH 15
Contents:
- Term Loans: Concept, cost, and benefits, loan repayment schedule.
- Lease financing: concept, merits and demerits of lease financing, forms of lease financing, Analysis of lease versus buy/borrow decision using the present value of cash flow approach.
- Lease financing in Nepal.
Unit 4: Long-Term Financing LH 20
Contnts
- Long term debt: Debt instruments, Features of long-term debts.
- Types of bonds; Bond innovations; Advantages and disadvantages of bonds.
- Common stock: Features of common stock.
- Legal rights and privileges of common stockholders.
- Advantages and disadvantages of common stock.
- Methods of selling securities: public offering, rights offering, and private placement.
- Analysis of rights offering and the effect of rights offering on shareholders’ wealth.
- The investment banks and the investment banking process.
- Ranking of different types of securities.
Unit 5: Hybrid Financing: Preferred Stock, Warrants, and Convertibles
- Preferred stock: Features and advantages and disadvantages.
- Warrants, reasons for using warrants, value of warrants, warrant premium.
- Convertibles, reasons for using convertibles, conversion ratio, conversion price, conversion value, straight bond value, minimum price of convertibles, and conversion premium.
Unit 6: Financial Planning and Forecasting
Contents
- Strategic planning, operating plan, and the financial plan.
- Sales forecast; Additional funds needed equation.
- Forecasted financial statements: Using regression to improve forecasts.
- Analyzing the effects of changes in ratios.
Unit 7: Capital Structure Decision
Contents:
- Capital structure and financial structure: Determining the optimal capital structure.
- The effect of capital structure on stock prices and the cost of capital.
- Capital structure and value of the firm.
Unit 8: International Corporate Finance
Contents
- Nature of multinational corporations; Reasons for companies going global.
- Multinational versus domestic financial management; Exchange rate quotations.
- Cross rates; Interbank foreign currency quotations.
- Trading in foreign exchange rates: spot rates and forward rates; Interest rate parity.
- Purchasing power parity; Inflation, interest rates, and exchange rates.
- International money and capital markets; International capital budgeting; and International capital structure.
Unit 9: Merger and Acquisition
Contnts:
- Rationale for mergers; Types of mergers; Level of merger activity.
- Hostile versus friendly takeovers; Merger analysis.
- Role of investment bankers; Corporate alliances, and Private equity investments.
Hence, these are the BBS 4th Year Corporate Finance Syllabus Pdf.
Other Important Links
| BBS 4th year all subject Notes. | BBS 4th year all subject Syllabus. |
| BBS 4th Year Subjects Pdf & Subjects | BBS 4th year Business Research Methods Syllabus. |
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