Business Finance

Syllabus

Paper I: Business Finance

Unit I 

Nature, Scope, Significance of Business Finance, Financial Goals, Finance Function, Duties, Responsibilities of a Finance Manager, Capital Market: Functions, Types & Significance.

Unit II

Capitalisation: Concept, Over and Under-Capitalisation: Causes and Remedies. Capital Structure: Concept, Cost of Capital, Capital Budgeting.

Unit III

Long Term and Short Term, Sources of Capital – Owned and Borrowed, Trade Credit, Bank Credit, Commercial Papers etc., Analysis of Profitability, Activity, Liquidity, Solvency and Performance.

Unit IV

Concept, Determinants and Sources of Working Capital, Fixed and Variable Working Capital, Estimation of Working Capital Requirements, Financing Approaches to Working Capital.