Course Outline

Faculty of Business

Course Title (Code): Principles of Finance (BBA 1305)

Program: Bachelor of Business Administration (BBA) Credit Hours: 03 Semester: Summer- 2011 Prerequisite(s): None Location(s): Dhaka Campus Office location: House 54, Road 4/A, Dhanmondi Office phone: 9667237- 40 Consultation hours: Monday 9:00-12:00 pm Wednesday 9:30 12:30

b Shampa Cell: 01712973553 E-mail address: frfshampa@yahoo.com

Course Description and Objectives: To enable learners to grasp the core concept of Finance. To enable them to interpret, explain and evaluate financial terms and condition. To acquaint them with more effective financial decision under competitive environment. Text(s)
: Principles of Managerial Finance. Lawrence J. Gitman, 10th Edition

Reference(s) : Essentials of Managerial Finance.

Scott Besley & Eugene F. Brigham, 13th Edition. : Principles of Finance. Robert W. Kolb, Ricardo J. Rodriguez, 2nd Edition.

Supplementary Readings:

Business magazines such as Harvard Business Review, Business Week, Fortune, Forbes, Financial Express, Business Section of the Daily Star etc.

Teaching Methodology:
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 Lecture will be the main method of teaching. Use of visual aids, like OHP and Multimedia, will aid the lecture presentations. The techniques of experiential learning like classroom exercises, and group discussions will be used to increase participation. Assignments and case studies will help the students to solve real-life problems and develop insights into applied organization approaches.

Lecture No.
01

Topics
Definition of Finance, Functions, Goal of a Firm: (Profit Maximization Vs Wealth Maximization), Social Responsibility, Agency Problem and Agency Cost Financial Market- Basic Concepts, Money & Capital Market, Interest Rate & instruments, Market Efficiency, Brief Discussion About DSE,
Time Value of Money, Present Value, Future Value, Compounding, Discounting, Annuity, Perpetuity, Calculation Process, Effective Rate of Interest.

Reference
Scott, Baseley and Gitman, (Chapt-1)

02

Baseley and Gitman,, (Chapt-2) Baseley and Gitman, (Chapt-4)

03

04

05

Risk Return Definition, Relation between Risk & Return, Risk Measurement, Probability, Expected Return, Standard Deviation, Type of Risk, Portfolio Risk. Analysis of Financial Statements: Ratio analysis, Major types of ratios, Comparison of Firm based on Ratio Analysis. Limitations of Ratio Analysis.
Review Class & Problem Solving before Midterm.

Baseley and Gitman, (Chapt-5) Baseley and Gitman, (Chapt-2)

06

Midterm Exam Working Capital ManagementTerminology, Importance, W.C. Cash flow Cycle, W.C. Investment and Financing Policies. Sources of Finance. Capital Budgeting: Importance of Capital Budgeting, Project Classifications, Capital Budgeting Techniques, Payback Period, NPV, IRR, Accept Reject Criterion, Comparison between NPV & IRR. Capital Budgeting Problem Solving, NPV & IRR Calculation Practice. Baseley and Gitman (Chapt- 14)

07

08

Baseley and Gitman, (Chapt-8& 9) Baseley and Gitman, (Chapt-8& 9)

09

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10

Cost of Capital: Its importance, WACC, Cost of Debt, Preferred Stock, Common Stock & Retained Earnings, MCC. 30 minutes tutorial

Baseley and Gitman, (Chapt-11)

11 12

Mathematical Problem Solving for Cost Of Capital. Review Class for Total Course before Final Exam.

Final Examination

Course Policies:
Attendance: Attendance in class is mandatory unless otherwise specified. Course Content: Instructor reserves the right to make necessary changes in the course content depending on the progress of the class. Class Makeup: In case of unavoidable circumstances should a course meeting, lecture or exam, needs to be cancelled; students will be offered a make up. All makeup classes will be held as per the rescheduling suggested by the course teacher. Exam Makeup: There will be no makeup of any exam. Academic Honesty: Any academic misconduct will be dealt according to the provisions of the students code of conduct. Consultation Hour: Students are most welcome to visit course teacher either during the consultation hours or by appointment. Classroom Behavior: Students are expected to participate in the class and not to commit any act such as gossiping or indulging in any activity that may disrupt the classroom environment. All cell phones must be turned off during the class time. Every body must bring their own calculator in the class.

Grading Scheme:
Continuous Assessment..30 (Class Attendance and Participation/ Class Tests/ Assignments/ Case Study/ Presentation/ Group Discussion) Mid-Term Examination..30 Semester Final Examination40 Page 3 of 4

------------------------------------------------------------------------------------------------Total: 100

Grade Assignment:
Letter grades will be assigned based on performance in the course. General rules of NUB are as follows: Marks 80 and above 75 79 70 74 65 69 60 64 55 59 50 54 45 49 40 44 Below 40 Letter Grades A+ A AB+ B BC+ C D Fail

Instructor Farhana Rob Shampa Department of Business Administration Northern University Bangladesh, (NUB).

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