COMSATS Institute of Information Technology

M.A. Jinnah Campus, Defence Road, Off Raiwind Road, Lahore

COURSE HANDBOOK

1 Course Title Business Finance

2 Course Code MGT232
3 Credit Hours 3(3,0)
4 Semester Fall 2017
5 Program BS Business Administration (BBA)
6 Resource Person Dr. Ammar Abid
7 Supporting Team Members -
8 Contact Hours (Theory) 3 hours per week
9 E-mail ammarabid@ciitlahore.edu.pk
10 Office Hours TBD
11 Course Introduction
This is an introductory course in finance, which provides students with a broad understanding
of the principles and practice of Business Finance. The focus of the subject is on the major
financial decisions made by companies and the valuation of investments made by them.

12 Course Objectives
The course starts by examining the various forms of businesses and the importance of financial
markets and interest rates. The main objective of the course is to inculcate among the students
basic concepts of finance to manage their own personal finance as well as management of their
investments. Course should develop understanding of basic finance concepts and their application
in business and industry. Critical thinking and knowledge application skills should be developed.

13 Learning Objectives

Through this course, students will learn the basics of Business Finance including Time value of
money and Financial Statement Analysis and also have knowledge of Stock and Bond
valuation.
LO1 Student should understand the agency relationship and conflict in corporate organisation.
LO2 Student should have basic understanding of operations of financial markets and
institutions.
LO3 Student should be able to understand determination of interest rates.
LO4 Student should be able to grind time value of money concepts including annuities and
retirement planning.
LO5 Student should be able to value bonds and stocks using valuation models.
Recommended Books
14

1. Fundamentals of Financial Management by Brigham and Houston, 2012 edition, Thomson

Learning, USA
2. Principles of Finance by Brigham and Besley,2011 edition, Thomson Learning, USA
3. Fundamentals of Financial Management by Van Horne, 2012
4. Principles of managerial Finance, 2012, 13th edition by Lawrance J Gitman (Recommended
Text)
Electronic References
15
1. www.sbp.org.pk
2. www.secp.gov.pk/
3. www.brecorder.com
 COMSATS Institute of Information Technology
M.A. Jinnah Campus, Defence Road, Off Raiwind Road, Lahore

4. http://www.pakistaneconomist.com/
Lecture
16
Weeks Topic of Lecture Reading Assignment
Week 1 Introduction
Overview of Business Finance, Introduction of the
course, Role of Finance Manager, Forms of Business Chapter 1
Organization, Goal of a Corporation, Agency
Relationship and Conflict

Week 2,3 Financial Markets and Institutions

An overview of financial Markets,
Chapter 2
An overview of financial Institutions,
An overview of financial assets

Week 4 Financial Statements , Cash Flows and taxes

Chapter 3
Overview of Financial Statements
Free Cash Flows
Week 5 Analysis of Financial Statements
Chapter 4
Financial Ratios, Uses and Limitations of Financial
Ratios
Week 6&7 1st Sessional Exam
Cost of Money, Factors affecting Interest Rates,
Determinants of Interest Rate, Cost of Money, Factors Chapter 5
affecting Interest Rates, practice questions,
Determinants of Interest Rate, Other Factors
Influencing Interest Rates, Practice Session
Week 8 Portfolio Return & Risk in a Portfolio Context,
Diversifiable vs. Market Risk, Required Rate of Return, Chapter 8
Capital Asset Pricing Model.
Week Time Value of Money, Time Lines, Future Value and
9&10 Present Value Concepts, Solving for Interest Rates and
Time, Ordinary & Due Annuities - PVA, FVA, PMT, i
Chapter 5
& n, Perpetuities, Ordinary & Due Annuities - PVA,
FVA, PMT, i & n, Perpetuities, Nominal Rate, Periodic
Rate & Effective Annual Rate

Week 2nd Sessional Exam

11&12 Bond Valuation, Bonds Types, Bonds Valuation, YTM,
YTC, Current Yield, Risk & Rates of Return Chapter 6
,Investment Return, Expected Rate of Return, Stand
Alone Risk

Week Stocks Valuation, Basic Terms, Dividend Growth

13&14 Model , Stocks Valuation, Dividend Growth Model, Chapter 7
Non Constant Model, Corporate
Value Model

Week 15 Revision
 COMSATS Institute of Information Technology
M.A. Jinnah Campus, Defence Road, Off Raiwind Road, Lahore

17 Course Assessment
The assessment of this module shall have following breakdown structure:

First Sessional Test 10%

Second Sessional Test 15%
Quizzes/Assignments 25%
Terminal Examination 50%

The minimum pass marks for each course shall be 50%. Students obtaining less than 50% marks
in any course shall be deemed to have failed in that course. The correspondence between letter
grades, credit points, and percentage marks at CIIT shall be as follows:

Grades Letter Grade Credit Points Percentage Marks

A ( Excellent) 4.0 90and above

A- 3.7 85-89
B+ 3.3 80-84
B (Good) 3.0 75-79
B- 2.7 70-74
C+ 2.3 65-69
C (Average) 2.0 60-64
C- 1.7 55-59
D (Minimum passing) 1.3 50-54
F (Failing) 0.0 Less than 50

18 Assessment Schedule
Week 3 1st Assignment: Analysis of financial statement of firm listed
on PSX using ratio analysis.
Week 3 1st Quiz
Week 7 2nd Quiz
Week 8 2nd Assignment: Ethical issues in finance and their impact on
shareholder’s value.
Week 13 3rdAssignment: Valuing a stock listed on PSX using valuation
models discussed in class.
Week 13 3rd Quiz

NB: There will be no makeup quizzes. Late submission of assignments will not be acceptable at any case
and will result in zero marks.