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Fundamentals of Finance syllabus

FIN 2069 units · 56 topicsAcademic year 2083/84
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Fundamentals of Finance

9 units

1. Introduction to Finance (5 LHs)

  1. Concept of finance
    1. Concept of finance
  2. Finance functions, The financial goal
    1. Finance functions, The financial goal
  3. Finance in organizational structure
    1. Finance in organizational structure
  4. Finance and related disciplines
    1. Finance and related disciplines.

2. Financial Environment (4 LHs)

  1. Overview of financial environment
    1. Overview of financial environment
  2. Financial instruments, Financial markets
    1. Financial instruments, Financial markets: Functions and types of financial markets
  3. Financial institutions
    1. Financial institutions: Depository and non- depository financial institutions.

3. Analysis of Financial Statements (6 LHs)

  1. Financial statements and reports
    1. Financial statements and reports
  2. Concept of financial statement analysis
    1. Concept of financial statement analysis
  3. Users of financial analysis
    1. Users of financial analysis
  4. Tools of financial statements analysis
    1. Tools of financial statements analysis
  5. Need of financial ratio analysis
    1. Need of financial ratio analysis
  6. Types of financial ratios
    1. Types of financial ratios: liquidity ratios, asset management ratios debt management ratios, profitability ratios and market value ratios
    2. Du-Pont equation
  7. Comparative ratios and benchmarking
    1. Comparative ratios and benchmarking
  8. Uses and limitations of ratio analysis
    1. Uses and limitations of ratio analysis.

4. Interest rates (6 LHs)

  1. The cost of money
    1. The cost of money
  2. Interest rates levels
    1. Interest rates levels
  3. Determinants of market interest rates
    1. Determinants of market interest rates
  4. Term structure of interest rates
    1. Term structure of interest rates
  5. Theories of term structure of interest rates
    1. Theories of term structure of interest rates
  6. Shape of yield curve
    1. Shape of yield curve
  7. Using the yield curve to estimate future interest rates
    1. Using the yield curve to estimate future interest rates
  8. Macroeconomic factors influencing interest rates
    1. Macroeconomic factors influencing interest rates
  9. And Interest rate and business decision
    1. and Interest rate and business decision.

5. Time Value of Money (8 LHs)

  1. Concept of time value of money
    1. Concept of time value of money
    2. Cash flow time line
  2. Future values and present values of a single cash flow
    1. Future values and present values of a single cash flow
  3. Computing the interest rate and the number of years
    1. Computing the interest rate and the number of years
  4. Future value and present value of an ordinary annuity and annuity due
    1. Future value and present value of an ordinary annuity and annuity due
  5. Computing annuity payments, periods and interest rates
    1. Computing annuity payments, periods and interest rates
  6. Present value of perpetuities
    1. Present value of perpetuities
  7. Present value and future value of uneven cash flows
    1. Present value and future value of uneven cash flows
  8. Semiannual and other compounding periods
    1. Semiannual and other compounding periods
  9. Preparation of loan amortization schedule
    1. Preparation of loan amortization schedule
  10. Application of the concept of time value of money
    1. Application of the concept of time value of money.

6. Bond Valuation (5 LHs)

  1. Meaning and key characteristics of bonds
    1. Meaning and key characteristics of bonds
  2. Basic financial asset valuation model
    1. Basic financial asset valuation model
  3. Valuation of bonds
    1. Valuation of bonds: perpetual bonds
    2. zero coupon bonds
  4. Coupon bonds with finite maturity
    1. coupon bonds with finite maturity
  5. Bonds with semiannual coupons
    1. Bonds with semiannual coupons
  6. Required return and bond values
    1. required return and bond values
  7. Changes in bond values over time
    1. Changes in bond values over time
  8. Bond yields
    1. Bond yields: current yield
    2. capital gain yield
  9. Yield to maturity and yield to call
    1. yield to maturity and yield to call.

7. Stock Valuation (5 LHs)

  1. Meaning and key features of common stock
    1. Meaning and key features of common stock
  2. Common stock valuation
    1. Common stock valuation: single and multiple holding periods
  3. The dividend discount model
    1. The dividend discount model: zero growth model
    2. normal growth model
  4. Non-constant growth model
    1. non-constant growth model
  5. Valuing the entire firm
    1. valuing the entire firm
  6. Preferred stock
    1. Preferred stock: Features and valuation.

8. Cost of capital (5 LHs)

  1. Concepts and uses of cost of capital, Components of cost of capital
    1. Concepts and uses of cost of capital, Components of cost of capital: cost of debt, cost of preferred stock, cost of retained earnings, cost of new common stock, weighted average cost of capital
  2. Factors affecting cost of capital
    1. Factors affecting cost of capital.

9. Working Capital (4 LHs)

  1. Concepts of working capital
    1. Concepts of working capital
  2. Types of working capital
    1. Types of working capital
  3. Factors affecting the size of working capital
    1. Factors affecting the size of working capital
  4. Working capital management and its significance
    1. Working capital management and its significance
  5. Operating cycle, cash conversion cycle and computing the amount of working capital requirement
    1. Operating cycle, cash conversion cycle and computing the amount of working capital requirement.