ACCOUNTING THEORY

Business Finance II

COURSE DESCRIPTION

The course is intended to prepare the students to understand the foundation for financial decision-making. It is an extension of Business Finance I (ACT 309). The course will also enable students to acquaint themselves with financial management issues that enable businesses to ensure the efficient and effective utilization of financial resources that are available.

COURSE OBJECTIVES

At the end of the course, the students should be able:

  • To identify the Scope and steps in Corporate Financial planning models
  • To evaluate and explain the working capital management decisions
  • To interpret and apply dividend policy
  • To measure risks and returns and to evaluate investment in shares
  • To use the theory of capital structure to evaluate capital structure decisions
  • To evaluate how gearing affect the financial performance of businesses
  • To identify and evaluate the methods of achieving external growth.

TOPICS TO BE COVERED:

i.          Financial Planning

ii.         Working Capital Management

iii.        Dividend Policy

iv.       Measurement of Risk and Returns

v.        Capital Structure

vi.       Gearing

vii.      Methods of Achieving External Growth