UNIQUE SERIES AKTU Syllabus
BBAFM05

Introduction to Corporate Finance

L-T-P3-0-0 Session2026-27 (W.E.F 2024-25) TypeTheory
Appears in 1 semester

BBA · Sem 6 (Specialisation: Financial Management)

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Syllabus

5 units · 40 lecture hours
Unit1

Unit 1: Fundamentals of Corporate Finance

8 hrs

Nature, scope, and objectives of corporate finance; finance function and its role in organisations; financial decision-making framework; time value of money concepts including present value, future value, annuities, and perpetuities; application of Excel in time value computations.

Unit2

Unit 2: Capital Budgeting and Investment Decisions

9 hrs

Capital budgeting process; estimation of cash flows; evaluation techniques including Payback Period, ARR, NPV, IRR, and Profitability Index; comparison of NPV and IRR; risk in capital budgeting; case studies.

Unit3

Unit 3: Cost of Capital and Financing Decisions

8 hrs

Concept of cost of capital; cost of debt, equity, preference shares, and retained earnings; Weighted Average Cost of Capital (WACC); operating and financial leverage; cases on EBIT-EPS analysis.

Unit4

Unit 4: Dividend Policy and Distribution Decisions

7 hrs

Determinants of dividend policy; forms of dividends including cash dividends, bonus shares, and stock splits; payout policies and corporate dividend practices; case studies.

Unit5

Unit 5: Working Capital Management

8 hrs

Importance of working capital; cash management techniques; Receivables Management – Objectives; Credit Policy, Cash Discount, Debtors Outstanding and Ageing Analysis; Collection Cost, Capital Cost, Default Cost, Delinquency Cost; Credit policy; estimation of working capital requirements; short-term financing sources and liquidity management.

Course Objectives5 points
  • To understand the principles, concepts, and scope of corporate financial management and its role in business decision-making.
  • To evaluate investment decisions using capital budgeting techniques and financial appraisal methods.
  • To analyse financing decisions by applying concepts of cost of capital and capital structure theories.
  • To assess dividend policy decisions and their implications for firm value and shareholder wealth.
  • To apply working capital management techniques and Excel-based tools for effective financial decision-making.
Course Outcomes (COs)5 outcomes

After completion of the course student will be able to:

  1. CO1Explain the fundamental principles, scope, and financial environment of corporate finance. (Understand)K2
  2. CO2Apply capital budgeting techniques to evaluate investment proposals and financial decisions. (Apply)K3
  3. CO3Compute the cost of capital and apply capital structure concepts to support financing decisions. (Apply)K3
  4. CO4Describe dividend policies and their impact on shareholder wealth and firm value. (Understand)K2
  5. CO5Apply Excel-based tools and techniques for solving corporate finance decision-making problems. (Apply)K3

Suggested Readings (Latest Editions)

  1. A. Damodaran. Applied Corporate Finance, Wiley
  2. Chandra, P. Financial Management: Theory and Practice. McGraw Hill Education.
  3. Pandey, I. M. Financial Management. Vikas Publishing House.
  4. Van Horne, J. C., & Wachowicz, J. M. Fundamentals of Financial Management. Pearson Education.
  5. Brealey, R. A., Myers, S. C., Allen, F., & Mohanty, P. Principles of Corporate Finance. McGraw Hill Education.
  6. Khan, M. Y., & Jain, P. K. Financial Management: Text, Problems and Cases. McGraw Hill Education.

Official AKTU syllabus

This subject is on page 41, 42 of the original AKTU PDF.

Official AKTU syllabus PDF ↗