ACF 261: Principles of Finance
Instructor: Mohammad Basharullah Year: 2007-2008
Office: Room:- 2253-ACT Quarter: Fall
E-Mail: basharullah_2000@yahoo.com Phone 0300 401 3446 bashar@lums.edu.pk 0321 443 0296
Days: Monday & Wednesday
Office Hours: 2:30-4:30 pm
COURSE PRE-REQUISITES:
A familiarity with basic Financial Accounting, Quantitative Methods and Statistics.
COURSE DESCRIPTION:
This is an introductory course in Finance and the first in a series of required Finance core courses for the B.Sc. Accounting & Finance degree. This course together with the next course, Corporate Finance, completes an introduction to Financial Management using the modern theory of finance. The final required course in the sequence, Intermediate Finance, introduces advanced topics and explores certain topics in depth.
Firms invest in real assets such as plant and equipment (the Investment decision) and raise money via personal funds, stocks, bonds or bank loans (the Financing decision). Broadly speaking, Financial Management is about how these Investment and Financing decisions should be made. This course explores the first part of Financial Management and introduces the framework, tools and techniques for making Investment decisions. Specifically, we will cover Valuation, Capital Budgeting, Modern Portfolio Theory and Equilibrium Risk-Return Relationship.
GRADING:
|Quizzes (3) |15% |
|Midterm |30% |
|Final |30% |
|Class Participation & Attendance |10% |
|Project |15% |
Quizzes:
Quiz 1: session 5
Quiz 2: session 9
Quiz 3: session 16
Project: The project is about applying Stock Valuation and Risk/Return techniques learnt in the course