Mohammad Ali Jinnah University

COURSE PLAN
FIN 2003 – BUSINESS FINANCE
Spring 2010

Course No FIN 2003

Course Title BUSINESS FINANCE

Instructor Ahmad Fraz

E-mail aahmadfraz@gmail.com
Semester Spring 2010 (25 January 2010 to 11 June 2010)

Duration 20 weeks including revision week and examinations

week.

Class Session Class meets twice a week, as per time table

Introduction to This is the third course in a series of courses in

the Course accounting and finance. It is preceded by two courses on
pure accounting and followed by one on Corporate
Finance. These courses together aim at enabling a
student understand the scope and importance of
accounting and finance from the point of view of
entrepreneurs and business managers.

Course To introduce the students to the:

Objective o Finance function, role of financial manager, nature of
financial decisions
o Capital structure of a company, its significance
o Sources and cost of finance, the relative importance of
each source
o Time value of money, its permutations and
implications
o Valuation of known cashflows (bonds), and fluctuating
cashflows (stocks)
o Risk Analysis
o Basic concepts of Islamic Finance

Course Pre- Principles of Accounting II (ACCT 2013)

requisite
Course Contents Legal forms of Pakistani business organizations. Policies,
methods and institutions involved in financing business.
The principles of financial management with emphasis on
the corporation, including cashflows, securities, financial
structures, introduction to Islamic Finance.

Prescribed Text Business Finance, An introductory text for Pakistan, by

Safdar A Butt
Reference Books 1 Fundamentals of Financial Management, by E. F.
and Material Brigham and J. Houston
 2 Fundamentals of Financial Management, by James C
Van Horne
Further reading may be prescribed in the class.

Teaching Lectures, Research Projects, Case Studies, Class

Methodology discussions

Attendance Any student coming to class later than 5 minutes after

Policy the scheduled starting time will be marked as absent for
the day. Three absences during the entire duration of the
course (for whatever reason) will render the student
ineligible to write the final examination for the course.
 Mohammad Ali Jinnah University
COURSE PLAN
FIN 2003 – BUSINESS FINANCE

Lectures Schedule
(Chapter Numbers refer to chapters in the prescribed textbook)
Chapt
Week Topic
er
1 1 What is Finance All About
The Financial System
2 2,3
Forms of Business Ownership
3 4 Financial Statements of a Company
4 5 Analysis of Financial Statements. Common Sized Statements
5 5 Analysis of Financial Statements. Common Sized Statements
6 7 Time Value of Money. NVP. IRR. Annuities
7 7 Time Value of Money. NVP. IRR. Annuities
8 - Mid Term Exam
9 6 Operating and Financial Leverages
10 8 Risk Management
11 9 Capital Structure of a Company
12 10 Cost of Capital
13 11 Principles of Assets Valuation
14 &
12 Valuation of Financial Assets. Bonds & Shares. CAPM.
15
16 13 Financial Planning
17 14 Evaluation of Capital Projects / Expenditure
18 19 Introduction to Islamic Finance
19 Final Revision Week
20 Final Examinations

Students Evaluation
There will be two formal stages of evaluation.
The initial evaluation will take place in the 9th week of the course. It will comprise
of 30% of total mark. These will be split as follows:

(i) Home assignments (Weeks 1 - 8) 5%

(ii) Class Quizzes and tests (Weeks 1 – 8) 5%
(iii) Mid-Semester Examination 20%
Sub-total 30%

Final Evaluation will comprise of 70% of total mark, split as follows:

(i) Home assignments (Week 10 -18) 5%
(ii) Classes Quizzes & Tests (Weeks 10 - 18) 5%
(iii) Tutorials (Weeks 1 – 18) 5%
(iv) (Class Participation (Weeks 1 – 18) 10%
(v) Project 20%
(vi) Final Examination 25%
Sub-total 70%
Grand Total 100%