Financial assets and models

Financial assets and models

Bachelor of Business Studies (BBS) — Second Year

Subject: Fundamentals of Financial Management (MGT 215)

Unit 5: Financial Assets Valuation

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of financial assets and models.
• Apply the relevant financial model, calculation or analytical approach and explain its assumptions and decision implications.

Curriculum Scope

• Concept
• Characteristics of bonds, common and preferred stocks
• Basic valuation models

Detailed Microsyllabus

1. Assets and valuation

   1. Financial claims and expected cash flows.
   2. Characteristics of bonds, common stock and preferred stock.
   3. Risk and timing of payments.

2. Basic valuation model

   1. Discount expected cash flows at an appropriate required return.
   2. Identify maturity and continuing-value assumptions.
   3. Assess sensitivity to inputs.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 41-43.

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.