Regression and ratio effects

Unit 6: Financial Planning and ForecastingTopic 3 of 3

Browse the Fundamentals of Corporate Finance syllabus

Fundamentals of Corporate Finance

10 units

1 Introduction to Corporate Finance
- Financial management and shareholder wealth
- Agency, ethics and governance
2 Short-Term Financing
3 Term Loans and Lease Financing
- Term loans
- Lease financing and Nepal
4 Long-Term Financing
5 Hybrid Financing: Preferred Stock, Warrants and Convertibles
6 Financial Planning and Forecasting
7 Capital Structure Decision
- Structure and optimal financing
- Stock prices, cost of capital and firm value
8 International Corporate Finance
9 Merger and Acquisition
10 Project Work
- Project requirement
- Assignment and preparation

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What the syllabus expects

Using regression to improve forecasts
Analyzing the effects of changes in ratios

Regression and ratio effects

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Fundamentals of Corporate Finance (FIN 250)

Unit 6: Financial Planning and Forecasting

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

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

Curriculum Scope

Using regression to improve forecasts
Analyzing the effects of changes in ratios

Detailed Microsyllabus

Regression forecasting
1. Estimate relationships from relevant historical data.
2. Interpret coefficients and model fit.
3. Recognize extrapolation limits.
Ratio changes
1. Analyze altered operating or financing ratios.
2. Recalculate forecast effects.
3. Separate a model assumption from an observed improvement.

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.