COURSE: INTRODUCTION OF BUSINESS FINANCE

SEMESTER:
CLASS ID:
FACULTY:

COURSE OUTLINE

PREREQUISITE COURSES
Business Mathematics and Financial Accounting

COURSE DESCRIPTION
The introduction to business finance course aims at imparting knowledge about the very basic concepts
and tools of business finance. It emphasizes the importance of Business Finance skills to individuals
and enterprises. It deals with the finance function in an organization, the role of the finance manager
and the financial environment in which the firm operates. The financial environment covers the
understanding of financial and capital markets along with the broad orientation of macro-economic
factors affecting the business. The emphasis will remain on developing the skills for planning,
appraising and evaluating the investment, financing and operating decisions.

PROGRAM OBJECTIVES AND PROGRAM LEARNING OUTCOMES

PO1: To develop knowledge and understanding of business-related concepts and develop students’ ability
to apply them in a real-world context.
 PLO1.1: Students are assigned textbooks and reference material for reading and testing is
done to ensure that students have absorbed the conceptual understanding of important
concepts.
 PLO1.2: Exercises are given to students in teams such as industry-related projects to
ensure that students are able to apply conceptual knowledge in real-world scenarios.

PO2: To develop the entrepreneurial and leadership spirit in students.

 PLO2.1: Some exclusive Courses are part of the degree that is focused on inculcating
entrepreneurial spirit among our students. An entrepreneurial project is reserved as a core
course for every student to develop a business plan for launching a new business. Support
services are to be provided for helping potential projects to be launched in the
marketplace before the student is graduated from the program.

 PLO2.2: Students are to be encouraged to develop and market their unique business ideas
through regular marketing events such as Marketing Gala, Brand Activation Activities,
etc.

 PLO2.3: Most courses must offer projects in teams to develop students’ leadership
capacity that comes out of the team environment. Students’ societies that are made up of
students must encourage students to build their leadership capabilities.
PO3: To develop students’ communication skills and build their confidence through classroom exercises
and activities to make them competitive for the business world.
 PLO3.1: Courses of the management sciences domain must-have presentations in the
basic as well as advanced courses to build their communication skills and confidence for
the public speaking that is imperative for managerial and leadership positions.

 PLO3.2: Evaluation of presentations in many courses and final projects be done by the
external evaluators from academia and industry.

 PLO3.3 Courses related to public speaking and activities related to debating be part of the
bachelor’s program to achieve the goal of superior communication and developing a
higher level of confidence among our students.

PO4: To instill a sense of ethical values and corporate social responsibility in our students.
 PLO4.1: Course/s related to corporate social responsibility be offered to instigate
students for approaching the social responsibility projects for the betterment of society.

 PLO4.2: Seminars and workshops be offered to gain an understanding of the importance

of social responsibility as well as the progress being made by individuals and
organizations in this domain in society.

 PLO4.3: Faculty be guided to introduce topics in the classroom that discuss the ethical
perspective for the business domain. Workshops and seminars are conducted in every
term from an ethical perspective.

PO5: To provide knowledge of various business domains like Marketing, Finance, Management and HR
to give a holistic view of the business domain in order to enhance the employability of graduates and to
prepare them for pursuing higher education locally and internationally.

 PLO5.1. The curriculum must include courses in key business areas and be taught by a
suitable faculty. Courses of business areas must-have assignments and project that is
industry-focused and be evaluated by professionals from industry and academia.

 PLO5.2. Guest speakers from the industry are invited to the classrooms for sharing their
market experience and knowledge in these different domains of Marketing, Finance,
HRM, Supply Chain, etc.

 PLO5.3. The mode of communication in the classroom must primarily be in the English
language between the faculty and the students.

PO6: Develop team-building and team working skills among students.

 PLO6.1. Classroom exercises must include a team-building approach by assigning
students in teams to carry out projects and assignments.

 PLO6.2. Final year projects of capstone orientation are conducted in teams of students.

 PLO6.3. Specific course/s on leadership and team-building be offered for students to help
them gain the theoretical perspective and team approach dimension.
COURSE LEARNING OUTCOMES
After studyingthis course,students will beableto:
CLO 1:Understand the role of business finance.
CLO 2: Analyze financial statements.
CLO 3: Understand the concept of time value of money in investing decisions.
CLO 4: Understand the concepts of risk and return for portfolio management.
CLO 5: Calculate the value of bonds and debt securities
CLO 6: Calculate the value of stocks and equity instruments
CLO 7: Understand and calculate weighted average cost of capital.
CLO 8: Discuss their course project work through a class presentation.
CLO 9: Understand the real-world application of the course topics through interaction with industry
professionals.

GENERAL PEDAGOGY OF CLASS CONDUCT

1. Before class self-study.
2. In-class discussion and quizzes.
3. Case analysis/assignments for developing analytical skills, problem-solving and decision making.
4. Application of confidence-building measures through classroom exercises (presentations etc.)

CLO PLO FACULTY

TOPIC REMARKS ON
WEEK CLO/PLO

Week 1 AN OVERVIEW OF BUSINESS CLO 1 PLO1.1,

FINANCE PLO1.2,
Forms of business organization. PLO4.3
Goals of business finance
Revision of financial statements i.e.
income statement, balance sheet, cash
flow statement and statement of changes
in equity.

Week ANALYSIS OF FINANCIAL CLO 2 PLO1.1,

2-3 STATEMENTS PLO1.2,
Ratio analysis PLO4.3,
The Du-Pont analysis PLO5.3
Common size analysis
Trend analysis

Week TIME VALUE OF MONEY CLO 3 PLO1.1,

4-5 The role and perspectives of the TVM PLO1.2,
concept PLO4.3,
Present value PLO5.3,
Future value
The relationship between future and PLO6.1
present values
Annuities and its Types
Future and present values of cash flows
under high compounding frequency
Impact of higher compounding frequency
 Inflation and the Time Value of Money
Effective Annual Rate (EAR)
Week RISK AND RETURN CLO 4 PLO1.1,
6-7 Expected returns and risk defined PLO1.2,
Calculating expected return PLO4.3,
Calculating risk (Variance and Standard PLO5.3
deviation)
Portfolio expected returns
Portfolio variance and standard deviation
Systematic and unsystematic risk
Diversification and portfolio risk
Beta and Portfolio Beta
Capital Asset Pricing Model (CAPM)
Week BOND VALUATION CLO 5 PLO1.1,
8-9 Definition, types and features of bonds PLO1.2,
Valuation of annual, semi-annual and PLO4.3,
perpetual bonds PLO5.3,
Basic relationships in bond valuation PLO6.1
Bond holders expected rate of return
Risks associated with bond returns
Week STOCK VALUATION CLO 6 PLO1.1,
10-11 Types of stocks and their basic features PLO1.2,
Costs and benefits of stock investments PLO4.3,
Valuation of zero-growth stocks, constant PLO5.3,
growth stocks and non-constant growth PLO6.1
stocks
Price of shares based on earnings
Expected rate of return
Preferred shares and their characteristics
Valuation of preferred shared and the
expected rate of return

Week COST OF CAPITAL CLO 7 PLO1.1,

12-13 The concept of cost of capital PLO1.2,
Weighted average costs of capital PLO4.3,
Cost of debt PLO5.3,
Cost of retained earnings PLO6.1
Cost of external equity
Cost of preferred equity
Week Project Presentation CLO 8 PLO2.3,
14 PLO3.1,
PLO3.2,
PLO6.1
Week Guest Speaker Session CLO 9 PLO5.2
15

COURSETEXTBOOK
Essentials of Managerial Finance (14th edition) by Scott Besley and Eugene F. Brigham.

REFERENCE TEXTBOOKS
1. Fundamentals of Financial Management (15 th edition) by Eugene F. Brigham and Joel F. Houston,
Cengage.
 2. Financial Management (14th edition) by Eugene F. Brigham and Michael C. Ehrhardt, Cengage.

CASES STUDIES
Case studies will be given to students on a periodic basis to illustrate real-world applications of various
topics covered in this course.
GROUP PROJECT
Each project group should prepare a financial feasibility report of a proposed new business venture in
Pakistan. The feasibility report should be based on a realistic business idea/plan fully recognizing the
constraints facing the group (such as time, limited investment and lack of experience). The project must
also be presented in class via a PowerPoint presentation.

MARKS DISTRIBUTION
ASSESSMENT
RUBRICS WEIGHTAGE
METHODS
Knowledge and for exam
1 Quizzes
preparation 5%
Developing analytical skills,
2 Assignments/case studies problem-solving approach and 10%
decision making.
Students’ confidence-building
Class participation and
3 measures and encouraging their 3-5%
others
participation
Must cover around 50% of the
course material. Testing through
4 Mid Term test 20-25%
Multiple choice 30 to 50% and
subjective 50 to 70%
Comprehensive. Full course
coverage. Multiple choice 30 to
5 Final exam 35-40%
50% and subjective 50 to 70%

Industry-based problem solving

and delivery in front of the
audience to enhance confidence
6 Project and presentation 15-25%
and communication of students
as well as understanding of real-
world issues.
Total 100%