INDEPENDENT UNIVERSITY, BANGLADESH

School of Business
BBA Program Course Outline

Semester Course Code Course Title Section

Spring17 FIN 301 Business Finance- I 01

Instructor: G. M. Wali Ullah Class Time: MW 15:20 16:50

Office: BC 4004 Class Room: BC 2009
Phone: Office Hours: ST: 11:30 13:30; 15:30 16:30
MW: 13:00 15:00
Thursday: 10:00 15:00
Email: wali@iub.edu.bd Blackboard: http://103.254.86.4/sb/course/index.php?categoryid=29

COURSE DESCRIPTION & OBJECTIVES:

The objective of this course is to reinforce concepts of corporate finance previously introduced. The risk and
return principle is further elaborated upon with the help of real-life illustrations. Tools and analytical
techniques for financial analysis are also discussed with a perspective of short-term and long term financial
management

PREREQUISITE: Successful completion of FIN 201 is required.

COURSE POLICY:
1. It is the students responsibility to gather information about the assignments and covered topics
during the lectures missed. Regular class attendance is mandatory. Points will be taken off for
missing classes. Without 70% of attendance, sitting for final exam is NOT allowed. According to
IUB system students must enter the classroom within the first 20 minutes to get the attendance
submitted.

2. The date and syllabus of quiz, midterm and final exam is already given here, however,
announcements will be given ahead of time. There is NO provision for make-up quizzes.

3. The reading materials for each class will be given prior to that class so that student may have a
cursory look into the materials.

4. Class participation is vital for better understanding of sociological issues. Students are invited to raise
questions.

5. Students should take tutorials with the instructor during the office hours. Prior appointment is
required.

6. Students must maintain the IUB code of conduct and ethical guidelines offered by the School of
Business.

7. Students must refrain from any type of cheating and/or plagiarism in a course. Any student acting
otherwise will receive an F grade in the course. School of Business, IUB, maintains a zero
tolerance policy regarding violation of academic integrity.

8. Students are not allowed to keep bags, handouts, books, mobile phones, smart watches or any other
smart electronic devices with them during any exam. Students are advised to keep everything in the
front of the class room before the exam starts. Please note that, just carrying any smart electronic
devises (even if the devise is turned off or put it in silent mode) during the exam will be considered
as cheating. Moreover, during the exam, anything written on hand palms (or anywhere else) and
carrying paper materials (whatever is written) will be considered as cheating. Any sorts of

1
 cheating will result in an F grade with no exception. During the exam, students are only allowed
to carry pen, pencil, eraser, sharpener, ruler, highlighter and calculator in a clear plastic bag.

ASSESSMENT AND MARKS DISTRIBUTION:

Type of Evaluation Nos. Weight (%)

Class Attendance and Participation 5
Quiz 4 15
Assignments/ Homework/ Projects 2 30
Midterm Exam 1 20
Final Exam 1 30
Total 100%

[Class attendance is mandatory; failure to do so may deduct the final marks]

GRADE CONVERSION SCHEME:

The following chart will be followed for grading. This has customized form the guideline provided by the
school of Business.

A A- B+ B B- C+ C C- D+ D F
90-100 85-89 80-84 75-79 70-74 65-69 60-64 55-59 50-54 45-49 0-44

* Numbers are inclusive

REQUIRED TEXT:
The course will be based mostly on the following books [some other books and journals may be referred
time to time]:

Ross, Westerfield and Jaffe Corporate Finance 10th Edition (2010), McGraw Hill.

RECOMMENDED REFERENCE TEXT:

Brealey, Myers and Allen Corporate Finance 9th Edition (2008), McGraw Hill.

CLASS AND EXAM SCHEDULE, TOPIC AND READINGS:

Sessions Topic Learning Outcomes Readings

Session -1 Introduction Explanation of Course Outline, Introduction to Course Outline
Corporate Finance,
Session -2 Introduction to The Balance Model of the Firm, The Financial Ross, Chapter1
Corporate Finance Manager, The Importance of Cash Flows, Pages 1-19
Identification of Cash Flows, Timing of Cash
Flows, Risk of Cash Flows, The Goal of the Handout
Financial Manager, The Agency Problem and available on
Control of the Corporation, Regulation virtual learning
system
Session -3 Raising Capital Early Stage Financing and Venture Capitalist, Ross, Chapter 20
Venture Capital, Stages of Financing, The Public Pages 621-631
Issue, Alternative Issue Methods, The Cash
Offer, Investment Banks Handout
available on
virtual learning
system
Session -4 Raising Capital The Offer Pricing, Underpricing: A Possible Horngren,
2
 Explanation, The Announcement of New Equity Chapter 20
and the Value of the Firm, The Cost of New Pages 632-641
Issue, Concept of Rights,
Handout
available on
virtual learning
system
Session -5 Raising Capital Relevant Problem Solving from Text (Chapter Ross, Chapter 20
20) Pages 652-653

Session -6 Financial Statement Different types of Financial Statements Ross, Chapter 2

and Cash Flow Pages 20-35

Handout
available on
virtual learning
system
Session-7 Financial Statement Relevant Problem Solving from Text (Chapter 2) Ross, Chapter 2
and Cash Flow Pages 36-39

Quiz 1 Knowledge of Chapter 1, 20

Session -8 Financial Statement Common-Size Balance Sheet, Common-Size Ross, Chapter 3
Analysis and Income Statements, Ratio Analysis, The Du Pages 44-59
Financial Model Pont Identity
Handout
available on
virtual learning
system
Session -9 Financial Statement The Percentage of Sales Approach, External Ross, Chapter 3
Analysis and Financing and Growth, Financial Policy and Pages 63-72
Financial Model Growth
Handout
available on
virtual learning
system
Session -10 Financial Statement Relevant Problem Solving from Text Ross, Chapter 3
Analysis and Pages 78-81
Financial Model

Session -11 Quiz 2 Knowledge of Chapter 2, 3 Ross, Chapter 2

&3

Handout
Project available on
virtual learning
system
Session -12 Risk Analysis, Real Sensitivity Analysis, Scenario Analysis, and Ross, Chapter 7
Options, and Break-Even Analysis Pages 209-219
Capital Budgeting
Handout
available on
virtual learning
system
Session -13 Mid Term Knowledge of Chapter 1, 2, 3, 20
Session -14 Risk Analysis, Real Real Option, The Option to Abandon, Ross, Chapter 7

3
 Options, and Decision of Trees Page 220-227
Capital Budgeting Handout
available on
virtual learning
system

Session -15 Relevant Problem Solving from Text (Chapter 7) Gitman, Chapter
17
Leasing Leasing, Types of Leasing, Leasing Agreements, Pages 731-767
Advantages and Disadvantages of Leasing
Handout
available on
virtual learning
system

Session -16 Leasing Lease vs Purchase Decision Gitman, Chapter

17
Pages 731-767

Handout
available on
virtual learning
system

Session -17 Leasing Relevant Problem Solving from Text Gitman, Chapter
17
Pages 654-687

Handout
available on
virtual learning
system
Session -18 Short-Term Tracing Cash and Net Working Capital, The Ross, Chapter 26
Financing and Operating Cycle and Cash Cycles, Calculating Pages 803-821
Planning The Operating Cycle and Cash Cycles, Cash
Budgeting, The Short Term Financial Plan Handout
available on
virtual learning
system
Session -19 Short-Term Relevant Problem Solving from Text (Chapter Ross, Chapter 26
Financing and 26) Pages 824-828
Planning

Quiz 3 Knowledge of Chapter 7 and !7 (Gitman)

Session -20 Cash Management Reasons for Holding Cash, Understanding Float, Ross, Chapter 27
Float Management, Cash Collection and Pages 834-855
Connection
Handout
available on
virtual learning
system
Session -21 Cash Management Managing Cash Disbursement, Investing Idle Ross, Chapter 27
Cash Pages 786-855

Relevant Problem Solving from Text Handout

available on

4
 virtual learning
system
Session -22 Credit and Components of Credit Policy, The Investment Ross, Chapter 28
Inventory in Receivables, Terms of Sales, Analysis Credit Pages 856-883
Management Policy
Handout
Quiz 4 available on
virtual learning
system
Session -23 Credit and Inventory Management Ross, Chapter 28
Inventory Pages 856-883
Management Relevant Problem Solving from Text

Session -24 Final Exam Chapter 7,14,16,17 and 20 Ross, Chapter

7,26,27,28 and
Gitman 17

AUDIT:
Students who are willing to audit the course are welcome during the first two classes and are advised to
contact the instructor after that.

NOTE:
Plagiarism- that is the presentation of another persons thoughts or words as though they were the students
own must be strictly avoided. Cheating and plagiarism on exam and assignment are unacceptable.

UNIVERSITY REGULATION AND CODE OF CONDUCT:

Please see the green book for further information about academic regulation and policies, including
withdrawal and grading, apples and penalties for pilgrims and academic misconduct.

STUDENTS WITH DISABILITIES:

Students with disabilities are required to inform the School of Business/ Department of Economics of any
specific requirement for classes or examination as soon as possible.