NATIONAL TEXTILE UNIVERSITY

FACULTY OF MANAGEMENT SCIENCES

Course Specifications

FIN-2081
Introduction to Business Finance

Fall 2019

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 COURSE SPECIFICATIONS

Basic Information
Course Title: Introduction to business finance
Course Code: FIN-2081
Course credits/week: Theory: 03 Lab: Nil Total: 03
Pre-requisite(s): NO

Co-requisite(s): Nil
Program(s) on which the course is given: MBA
Is the course major or minor element of the program: Major: Minor:
Department offering the program: FMS
Department offering the course: Management Sciences
Academic year/level: 2
Revision #:
Last revised on (date):
 MASTER OF BUSINESS ADMINISTRATION (MBA)

PROGRAM LEARNING OUTCOMES (PLOs)

No. ATTRIBUTES OUTCOMES

An ability to understand and apply theoretical knowledge

1 Core Business Education related to core business subjects to solve business problems at
a level expected from graduates with MBA degree.

An ability to understand technical knowledge, working

Textile Management environment, managerial issues and opportunities of Pakistan’s
2
and Marketing Textile Industry to enable the students to contribute positively
towards textile sector.

An ability to demonstrate effective oral and written

Oral and Written
3 communication in interpersonal transactions at workplace at a
Communication
level expected from graduates with MBA degree.

An ability to organize and analyze data for effective decision

Analytical Thinking and
4 making to reach an appropriate and sustainable solution at a
Decision Making Skills
level expected from graduates with MBA degree.

An ability to understand common ethical problem faced by

Ethical Considerations in
5 managers and how to use ethical knowledge in decision
Decision Making
making.

An ability to understand and apply theoretical knowledge on

6 Leadership leadership to achieve goals through coworkers in workplace
settings at a level expected from graduates with MBA degree.

An ability to identify and seize a suitable business opportunity

Fostering
7 with understanding of key environmental factors at a level
Entrepreneurial Spirits
expected from graduates with MBA degree.

Global Perspective with An ability to understand issues related to global business

8
Focus on Textile Industry operations with focus on Textile Sector.
Course description
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 this 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. 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, Intermediate Finance, completes an
introduction to modern theory of Corporate Finance. The final required course in the
sequence, Applied Corporate Finance, introduces advanced topics and explores certain
topics in depth.

Linking to
PROGRAM
Sr. Course Learning Outcomes Taxonomy
Domain LEARNING
No. (CLOs) Level
OUTCOMES
(PLOs)
1 Acquire knowledge about the Cognitive 2 1, 4
fundamental concepts and tools of
finance
2 Ability to apply financial management Cognitive 3 1, 4,6
concepts and tools to the decisions
faced by a manager in investment
decisions and financing decisions and
dividend decisions faced by the
firm.
Course Schedule
Week Module Intended Learning Outcomes
At the end of the lecture, students will be able to understand:
1 Introduction Introduction to the course contents, the possible learning outcomes,
details of assignments and quizzes, code of conduct for the course.
2,3 Putting things in What is Finance? Finance versus Economics and Accounting, Finance
within an Organization, Corporate Finance, Capital Markets, and
Financial
Investments, Forms of Business Organization, Stock Prices and
Perspective Shareholder Value, Intrinsic Values, Stock Prices, and Executive
Compensation, Important Business Trends, business ethics.
4,5 Financial Markets The Capital Allocation Process, Financial Markets, Types of Markets,
and Institutions Financial Institutions, The Stock Market, Physical Location Stock
Exchanges, Over-the-Counter (OTC) and the Nasdaq Stock Markets, The
Market for Common Stock, Types of Stock Market, Stock Markets and
Returns, Stock Market Reporting, Measuring the Market, Stock Market
Returns, Stock Market Efficiency, A Closer Look at Behavioral Finance
Theory.

Financial Statements Balance Sheet Information, Income Statement

Information, A Possible Framework for Analysis Use of Financial Ratios,
Types of Ratios l Balance Sheet Ratios Liquidity Ratios, Financial
Financial statements
6, 7 Leverage (Debt) Ratios, Income Statement and Income
and analysis Statement/Balance Sheet Ratios Coverage Ratios, Activity Ratios,
Profitability Ratios, Trend Analysis, Common-Size and Index Analysis
Financial Statement Items as Percentages of Totals, Financial Statement
Items as Indexes Relative to a Base Year, Key Learning Points, Summary
of Key Ratios, Questions.

8 Presentations Presentations on selected topics

9 MID TERM EXAM

Time Lines, Future Values, Step-by-Step Approach, Simple versus

Compound Interest, Formula Approach, Financial Calculators,
Spreadsheets, Present Values, Graphic View of the Discounting Process,
10, 11 Finding the Interest Rate, Finding the Number of Years, N, Annuities,
Time Value of Future Value of an Ordinary Annuity, Future Value of an Annuity Due,
Money Present Value of an Ordinary Annuity, Finding Annuity Payments,
Periods, and Interest Rates, Finding Annuity Payments, Finding the
Number of Periods, N, Finding the Interest Rate, Perpetuities.
The Cost of Money, Interest Rate Levels, The Determinants of Market
Interest Rates, The Real Risk-Free Rate of Interest, The Nominal, or
Quoted, Risk-Free, Rate of Interest, rRF = r* + IP, Inflation Premium (IP),
An Almost Riskless Treasury Bond Default Risk Premium (DRP),
Interest Rates
Liquidity Premium (LP), A 20% Liquidity Premium on a High-Grade
Bond, Interest Rate Risk and the Maturity, Risk Premium (MRP), The
12,13 Term Structure of Interest Rates, What Determines the Shape of the Yield
Curve? The Links between Expected Inflation and Interest Rates: A
Closer Look, Using the Yield Curve to Estimate, Future Interest Rates,
 Macroeconomic Factors That Influence, Interest Rate Levels, Federal
Reserve Policy, Federal Budget Deficits or Surpluses, International
Factors, Business Activity, Interest Rates and Business Decisions.

Who Issues Bonds? Key Characteristics of Bonds, Par Value, Coupon

Interest Rate, Maturity Date, Call Provisions, Sinking Funds, Other
Features, Bond Valuation, Bond Yields, Yield to Maturity, Yield to Call,
Bonds and Their
Changes in Bond Values over Time, Bonds with Semiannual Coupons,
14,15 Valuation Assessing a Bond’s Riskiness, Interest Rate Risk, Reinvestment Rate
Risk, Comparing Interest Rate and Reinvestment Rate Risk, Default Risk,
Various Types of Corporate Bonds, Bond Ratings, Bankruptcy and
Reorganization, Bond Markets.
An Overview of Capital Budgeting, Net Present Value (NPV), Internal
Rate of Return (IRR), Why NPV Is Better Than IRR Multiple Internal
16 The Basics of Rates of Return, Reinvestment Rate Assumptions, Modified Internal Rate
Capital Budgeting of Return (MIRR), NPV Profiles, Payback Period, Conclusions on Capital
Budgeting Methods, Decision Criteria Used in Practice.
End-semester examination
Recommended Text Books:
S. No. Title Author
Text Book(s):  Eugene F. Brigham: Fundamentals of Financial Management
(Title, Author, Edition,  Brealey, R. A. & Myers, Principles of corporate
Publisher)  Ross, Westfield, Jordan: Corporate Finance Essentials.
Reference Book(s):  Eugene F. Brigham: Fundamentals of Financial Management
(Title, Author, Edition,  Brealey, R. A. & Myers, Principles of corporate Ross, Westfield, Jordan:
Publisher) Corporate Finance Essentials.
Facilities Required for Teaching and Learning
-White Board
-Multimedia

Assignments Schedule & Quiz

No. Week Assigned Week Due QUIZ TESTS
1 3 4 Three surprise quiz tests will be conducted
during the semester, best of two will be
2 6 7
counted for final grade. There will be no
3 11 12
makeup of these tests.
4 14 15
Examination / Weighting of Assessments & Quizzes
Quizzes + Assignments + Class Participation + Projects 30 %
Mid-semester examination 30 %
End-semester examination 40 %

Dress Code:
Formal business attire only (Dress Trouser, Shirt, Tie, Dress Shoes) Jeans and Joggers NOT ALLOWED.
Not sure what this dress code means? Read When Job-Hunting: Dress for Success.

Instructor Responsibilities:
 In keeping with the format of this class, I see myself as your immediate supervisor. In that sense, I plan to
mentor each of you so that you learn how to make the best decisions possible, to understand and apply key
macroeconomic concepts, and to prepare you to become productive employees upon graduation. I will do
my best to help each of you grow into the best marketer you choose to become. Thus, besides class time --
where I will often put you on the spot -- I expect there will be many times we will communicate outside of
class, and I will do my best to help you in a timely fashion.

Student Responsibilities:
You are expected to arrive to class on time, professionally dressed, and prepared for the day. You should
be fully prepared to discuss and debate the course material assigned for that date. You are expected to
participate at all levels and offer objective praise and criticism of your classmates’ analyses and conclusions.
This course is not for the meek or timid. You must contribute to the greater understanding of
macroeconomics. This course is a combination of doing (homework), thinking, and discussing.

Class Participation and Individual Conduct

You should make every effort to attend each class meeting. In addition, it is important that you prepare for
each class by reading the relevant book chapters before the class session in which it will be discussed. You
will also be expected to participate in class discussion and complete in‐class exercises that will be based on
these reading assignments. Your participation grade will be based on contribution and attendances (be
punctual, attend classes, come prepared by doing the readings, show initiative in the discussion). Note that
students who only “show up” should not expect even an average score. You must be present in class in
order to receive credit for in‐class exercises, quizzes, participation, etc.
Eating, sleeping, reading, texting, listening to or working on unrelated materials, sidebar conversations, or
“multi‐tasking” using a computer or other electronic device is not permitted. Laptops (and similar devices)
may be used in class for course related activities such as taking notes. Students may bring drinks such as
water.

General Expectations & Classroom Etiquettes:

In terms of performance in this class, I have very high expectations and anticipate outstanding work from
each of you. I hope for a very positive experience for us all. Keep in mind that if you do not deliver
outstanding work then you will be graded to reflect this. I ask that you contact me directly and immediately
if you ever have any questions or concerns regarding the class, any particular assignments, or your grade(s).
I am always willing to help.
I do ask that all students be respectful and courteous to other class members as well as the professor. This
includes turning off cell phones and other electronic devices before class begins and arriving to class on
time, as walking in late is disruptive to other classmates and the professor. Those who walk in late will
likely not receive attendance credit for that day.

Useful Tools / Advice:

This course is time and labor intensive. Be certain to schedule enough time in your weekly planning to
accommodate.

You need to have good access to the Web and an e-mail account.

Please always do your best work.

Etc.:
It is expected that all work you submit for a grade in this class be original and prepared for this class only.
I am always willing to see my students and will go out of my way to schedule meetings. Please make sure
that if you make an appointment that you keep it.
Finally, as will quickly become apparent, e-mail is by far the easiest and most reliable method to reach me.
Contact Details:
Dr. Muhammad Shahzad Iqbal
Office Hours
Course Specifications Developed By:
Dr. Muhammad Shahzad Iqbal
Assistant Professor
Department of Management Sciences
National Textile University Faisalabad
Friday 09:00 to 04:00 PM
Reviewed By (Dean FMS):
Dr. Sajjad Ahmad Baig

Ms. Mina Kharal

Date: 21-10-2019 Date: 21-10-2019

Learning Outcomes Verbs Sheet

Knowledge Comprehension Application Analysis Synthesis Evaluation
Cite Associate Apply Analyze Arrange Appraise
Count Classify Calculate Appraise Assemble Assess
Define Compare Classify Calculate Collect Choose
Draw Compute Demonstrate Categorize Compose Compare
Identify Contrast Determine Classify Construct Criticize
List Differentiate Dramatize Compare Create Determine
Name Discuss Employ Debate Design Estimate
Point Distinguish Examine Diagram Formulate Evaluate
Quote Estimate Illustrate Differentiate Integrate Grade
Read Explain Interpret Distinguish Manage Judge
Recite Express Locate Examine Organize Measure
Record Extrapolate Operate Experiment Plan Rank
Repeat Interpolate Order Identify Prepare Rate
Select Locate Practice Inspect Prescribe Recommend
State Predict Report Inventory Produce Revise
Tabulate Report Restructure Question Propose Score
Tell Restate Schedule Separate Specify Select
Trace Review Sketch Summarize Synthesize Standardize
Underline Tell Solve Test Write Test
Translate Translate Validate
Use
Write