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Lesson 1

The document outlines the course structure for Business Finance (ACC501) at Virtual University, including the primary textbook and reference materials. It covers key topics such as financial environment, investment criteria, risk and return, and capital management. Additionally, it highlights four basic areas of finance: Business Finance, Investments, Financial Institutions, and International Finance.

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2 views2 pages

Lesson 1

The document outlines the course structure for Business Finance (ACC501) at Virtual University, including the primary textbook and reference materials. It covers key topics such as financial environment, investment criteria, risk and return, and capital management. Additionally, it highlights four basic areas of finance: Business Finance, Investments, Financial Institutions, and International Finance.

Uploaded by

wajiha sajid
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Business Finance –ACC501 VU

LESSON 1
BUSINESS FINANCE

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


o Business Finance
o Investments
o Financial Institutions
o 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:
o Pricing Financial Assets
o Associated Risks and Rewards
o Determining best mixture of financial investment
· Career opportunities in investment
o Stock Brokerage

© Copyright Virtual University of Pakistan 1


Business Finance –ACC501 VU
o Portfolio Management
o Security Analysis

Financial Institutions

· Businesses dealing in financial matters


o Banks and Insurance companies

International Finance

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

© Copyright Virtual University of Pakistan 2

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