Warrants

Warrants

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Fundamentals of Corporate Finance (FIN 250)

Unit 5: Hybrid Financing: Preferred Stock, Warrants and Convertibles

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of warrants.
• Apply the relevant financial concepts or calculations and explain their assumptions, risks and analytical limits.

Curriculum Scope

• Warrants, reasons for using warrants, value of warrants, warrant premium

Detailed Microsyllabus

1. Warrants

   1. Right to acquire securities on stated terms.
   2. Reasons for including warrants.
   3. Exercise price and relevant market value.

2. Valuation

   1. Calculate the prescribed warrant value.
   2. Premium over the chosen benchmark.
   3. Interpret time and market assumptions.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 80–82.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.