NEB Class 12 Business Finance Curriculum

Basic Business Finance (Fin. 418)
Syllabus

Full marks: 75 (Pass marks: 24)

Course Contents:

Unit 1: Introduction to Business Finance

1. Describe the concept and meaning of business finance.
2. Explain the relationship of finance with economics and accountancy.
3. Describe the responsibilities of a financial manager.
4. Explain the ethical issues in financial decision.

Unit 2: Financial Statements and Reporting

1. Describe the basic concepts of financial statements.
2. Identify and apply the contents of balance sheet.
3. Describe the contents of income and cash flow statement.
4. Identify the contents of statement of changes in equity structure.
5. Explain note to accounts.
6. Describe the common size statements.
7. Describe annual report.

Unit 3: Financial Analysis

1. Describe the importance of ratio analysis.
2. Compute and interpret the Liquidity ratios.
3. Compute and interpret the Asset Management ratios and the Debt Management ratios.
4. Compute and interpret the profitability ratios and the market value ratios.
5. Describe the DuPont equation.

Unit 4: Source of Fund

1. Describe the concept and features of common stock, preferred stock and debt.
2. Explain the advantages and disadvantages of common stock, preferred stock and debt.

Unit 5: Capital Structure

1. Describe capital structure and financial structure.
2. Acquire the knowledge of optimal capital structure.
3. Describe the factors affecting capital structure decisions.
4. Identify the business risk and financial risk.
5. Explain Break-even Analysis and compute operating BEP.

Unit 6: Bond and Stock Valuation

1. Calculate the value of bond including semiannual compounding.
2. Calculate book value of common stock.
3. Calculate the value of common stock for finite holding periods.
4. Determine the value of common stock under zero and constant dividend growth model.

Unit 7: Capital Investment Decision

1. Describe the meaning and importance of investment decisions.
2. Acquire the knowledge of various types of investment proposals.
3. Describe the steps of investment proposal evaluation techniques.
4. Compute the PBP and NPV.

Unit 8: Working Capital and Current Assets Management

1. Describe the concept, types and importance of working capital.
2. Explain the determinants of working capital.
3. Describe the concept of cash conversion cycle and compute CCC.
4. Understand various types of current assets.
5. Explain the concept and importance of cash and marketable securities management.
6. Explain the concept and importance of receivable management and inventory management.

Unit 9: Dividends and Dividend Payment Procedure

1. Describe the meaning, concept and forms of dividends.
2. Identify and explain the different types of dividend payout schemes.
3. Describe the dividend payment procedure.
4. Explain the factors influencing dividend decisions.

Unit 10: International Finance

1. Describe the MNEs.
2. Differentiate between multinational and domestic financial management.
3. Acquire the knowledge of exchange rates.
4. Compute cross rate.