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Tribhuvan university BBS 2013 Syllabus Fundamentals of Financial Management

Fundamentals of Financial Management - Syllabus

Course Overview and Structure
Syllabus Notes Old Questions Unit Wise Questions Question Bank

Embark on a profound academic exploration as you delve into the Fundamentals of Financial Management course (Fundamentals of Financial Management) within the distinguished Tribhuvan university's BBS department. Aligned with the 2013 Syllabus, this course (MGT 215) seamlessly merges theoretical frameworks with practical sessions, ensuring a comprehensive understanding of the subject. Rigorous assessment based on a 100 marks system, coupled with a challenging passing threshold of 35, propels students to strive for excellence, fostering a deeper grasp of the course content.

This 3 credit-hour journey unfolds as a holistic learning experience, bridging theory and application. Beyond theoretical comprehension, students actively engage in practical sessions, acquiring valuable skills for real-world scenarios. Immerse yourself in this well-structured course, where each element, from the course description to interactive sessions, is meticulously crafted to shape a well-rounded and insightful academic experience.


Course Objective

This course “Fundamentals of Financial Management” aims to provide students with basic understandings of fundamental concepts and principles

of financial management. This course also equips the students with fundamental tools and techniques of financial management that are useful to undertake financial decisions by corporate firms. By the end of this course, the student will be able to:

• explain fundamental concepts and principles of financial management

• analyze and interpret the financial statements of corporate firms

• apply the concept of time value of money in business decision

• measure risk and return on assets and diversify risk

• determine the intrinsic value of bonds and stocks

• calculate weighted average cost of capital along with the cost of each source of financing

• evaluate investment projects applying appropriate techniques of capital budgeting

• describe the concept of capital structure and leverage, and analyze its implication on firm value

• Identify fundamental issues in dividend payments of a firm.

• explain basic concepts of working capital and apply different techniques for managing current assets

Course Description

This course “Fundamentals of Financial Management” is deals with how effectively financial resources are raised and used by a business firm. It helps students to learn effective management of financial resources in a firm and equips them with necessary skills to put them in practice. The course also creates foundation for specialized and advance courses in finance. 


This course is divided into11 units covering the basic aspects of financial management. The titles covered under this course are: introduction to financial management, financial statements and analysis, time value of money, risk and rates of return, bond valuation, stock valuation, cost of capital, basics of capital budgeting decision, capital structure and leverage, dividend payments, and working capital and current asset management. The course will be implemented to provide in a manner that gives students adequate opportunities to expose to real business financial situations.

Units

Key Topics

  • Introduction to Computers
    IN-01

    An overview of computers and their significance in today's world. This topic sets the stage for understanding the basics of computers.

  • Digital and Analog Computers
    IN-02

    Understanding the difference between digital and analog computers, their characteristics, and applications.

  • Characteristics of Computers
    IN-03

    Exploring the key characteristics of computers, including input, processing, storage, and output.

  • History of Computers
    IN-04

    A brief history of computers, from their inception to the present day, highlighting key milestones and developments.

  • Generations of Computers
    IN-05

    Understanding the different generations of computers, including their features, advantages, and limitations.

Financial statements and reports, The balance sheet, The income statement, Statement of cash flows, Statement of stockholders’ equity, Free cash flow, Ratio analysis: liquidity, asset management, debt management, profitability, market value ratios, Du-Pont equation, Ratios in different industries, Uses and limitations of ratios.

Concept and significance of time value of money, Cash flow time line, Present value and future value: future value of a single amount and present value of a single amount, Solving for interest rates and time period, Annuities: types of annuities, future value of ordinary annuity and annuity due, present value of ordinary annuity and annuity due; solving for annuity payments, periods and interest rates, Present value of perpetuities, Future and present value of uneven cash flows, Semi-annual and other compounding periods, Comparing interest rates,

Amortization of Loans

Key Topics

  • Introduction to Risk Management
    RI-1

    Overview of risk management in software project management, importance and objectives.

  • Nature of Risk
    RI-2

    Understanding the nature of risk, types of risks, and risk characteristics.

  • Risk Identification
    RI-3

    Techniques and methods for identifying risks in software projects.

  • Risk Analysis
    RI-4

    Qualitative and quantitative risk analysis, risk assessment, and prioritization.

  • Evaluating Risk Impact on Schedule using Z-values
    RI-5

    Using Z-values to evaluate the impact of risks on project schedules.

  • Framework for Dealing with Risk
    RI-6

    Establishing a structured approach to risk management. This involves defining roles, responsibilities, and procedures for managing risks.

Key Topics

  • Basic and Axiomatic definitions of Boolean algebra
    BO-1

    Introduction to Boolean algebra, including basic and axiomatic definitions, laying the foundation for digital logic.

  • Basic Theorems and properties of Boolean Algebra
    BO-2

    Exploration of fundamental theorems and properties of Boolean algebra, essential for understanding digital logic principles.

  • Boolean Functions
    BO-3

    Study of Boolean functions, including their representation and manipulation in digital logic systems.

  • Logic Operations
    BO-4

    Examination of logic operations, including AND, OR, and NOT, and their role in digital logic circuits.

  • Logic Gates
    BO-5

    Introduction to logic gates, the building blocks of digital logic circuits, including their types and applications.

  • Integrated Circuits
    BO-6

    Overview of integrated circuits, including their design, fabrication, and role in modern digital systems.

  • Required Return and Bond Values
    BO-7

    This topic explains the relationship between required return and bond values. It covers how changes in required return affect bond values.

  • Changes in Bond Values over Time
    BO-8

    This topic covers how bond values change over time. It explains the factors that influence bond value changes and their implications.

  • Bond Yields: Current Yields, Yield to Maturity, and Yield to Call
    BO-9

    This topic explains the different types of bond yields, including current yield, yield to maturity, and yield to call. It covers the calculation and interpretation of each yield type.

Meaning and key features of common stock, Common stock valuation: single and multiple holding periods, The dividend discount model: zero growth model, normal growth model, non-constant growth model, valuing the entire firm, Preferred stock: Features and valuation.

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

Concept and significance of capital budgeting, Process of capital budgeting decisions, Classification of capital projects, Capital budgeting techniques: payback period, discounted payback period, accounting rate of return, net present value, internal rate of return, comparing NPV and IRR, modified internal rate of return, profitability index, Evaluation of techniques.

Capital structure and financial structure, Optimal capital structure and weighted average cost of capital, Business risk and financial risk, Breakeven Analysis: Determining BEP, BEP charts, application and limitations of break-even analysis, cash BEP and financial BEP, Degree of operating leverage, financial leverage and total leverage, Factors affecting capital structure decisions.

Concept and types of dividend, Dividend payment procedures, Factors influencing dividend policy, Dividend payout scheme, Stock dividend, Stock split, Stock repurchase, Dividend Payment Practices in Nepal.

Concept of working capital, Importance of working capital management, Factors affecting size of working capital, The cash conversion cycle, Purpose and Significance of inventory management, Basic inventory costs, The economic order quantity model, Re-order point and safety stock, Quantity discount, Purpose and significance of cash management, Motives and rationale for holding cash and marketable securities, Cash Budget, Purpose and significance of receivable management, Elements of credit policy: credit standard, credit terms and collection policies.