GOVERNMENT COLLEGE

UNIVERSITY FAISALABAD
FACULTY OF ECONOMICS & MANAGEMENT SCIENCES

Course Specifications

Business Finance
BAM-401

Fall 2023-2024

https://gcuf.edu.pk/dept-lyallpur-business-school
 COURSE SPECIFICATIONS

Basic Information
Course Title: Business Finance
Course Code: BAM-401
Course credits/week: Theory: 03 Lab: Nil Total: 03
Pre-requisite(s): Accounting-I
Co-requisite(s):
Program(s) on which the course is given:
Is the course major or minor element of the program: Major: Yes Minor:
Department offering the program: Lyallpur Business School (LBS)
Department offering the course: Division of Finance
Academic year/level: 3
Revision #:
Last revised on (date): 01-09-2024

Course Description:
The Business Finance course is designed to equip students with foundational knowledge and
practical skills in financial management, emphasizing the significance of financial acumen
for both individuals and organizations. This course provides an in-depth exploration of the
finance function within an organization, highlighting the critical role of the finance manager
and the broader financial landscape that influences business operations.

Students will gain insights into the structure and dynamics of financial and capital markets, as
well as a comprehensive understanding of macroeconomic factors that impact business
environments. The curriculum emphasizes developing essential skills for effective decision-
making in finance, including the planning, appraisal, and evaluation of key financial
decisions related to investments, funding, and operational activities.

By the end of the course, students will be well-prepared to assess financial opportunities and
risks, make informed investment choices, and understand the implications of various
financing and operational decisions. Additionally, they will be able to analyze how changes
in economic conditions and financial markets affect organizational performance, preparing
them to manage financial resources strategically in an ever-evolving business environment.
Course Objectives:
 Understand the distinctions between accounting and finance, specifically in the
context of strategic financial decision-making.
 Comprehend the core functions of financial management, including planning, control,
and strategic decision-making across different levels.
 Explore agency theory, agency problems, and methods to mitigate conflicts between
managers and stakeholders.
 Gain insights into the financial environment in which organizations operate, including
the roles of financial markets, institutions, and intermediaries.
 Master the calculations related to the time value of money, such as present value (PV)
and future value (FV) of single sums, annuities, and perpetuities.
 Understand the fundamentals of bond valuation, bond yields, and risk assessment for
long-term securities.
 Build critical thinking and analytical skills necessary for evaluating and executing
financing, investing, and operating decisions within an organization.
 Develop an understanding of the concepts of risk and return, including stand-alone
risk, risk-return trade-offs, and portfolio risk assessment.
 Master the calculations for holding-period return, holding-period yield, and expected
return.
 Introduce students to the core principles of Islamic finance, including concepts such
as Mudarabah, Musharakah, Murabaha, and Ijarah
 Equip students with skills to interpret and analyze financial statements through
various metrics and tools.

Program Learning Outcomes (PLOs):

On completion of program, the student will be able to:

1. PLO1: Demonstrate Effective Leadership professionalism: To articulate a vision

for inclusive business practices that integrates indigenous knowledge with
contemporary approaches. Moreover, they could demonstrate effective
communication and collaboration skills to lead diverse teams towards achieving
shared goals.
2. PLO2: Application of Managerial Skills: To solve business issues while applying
technical knowledge with understanding of business environment and exploit business
opportunities.
3. PLO3: Analysis of Business Practices: To evaluate the effectiveness of different
business models, considering indigenous knowledge and contemporary practices.
4. PLO4: Contribute to Societal Development: To develop and implement action
plans that leverage graduates’ skills and knowledge to address local community
challenges for collective growth.
5. PLO5: Navigate the Local Business Landscape: To identify and analyze key
trends/opportunities and challenges of local business environment.
Course Learning Outcomes (CLOs):
On completion of this course, the student will be able to:

1. CLO 1: Comprehend the core functions of financial management, including planning,

control, and strategic decision-making across different levels (REF: PLO1 & PLO 2)
2. CLO2: Understand the distinctions between accounting and finance, specifically in
the context of strategic financial decision-making (REF: PLO2)
3. CLO3: Explore agency theory, agency problems, and methods to mitigate conflicts
between managers and stakeholders (REF: PLO1)
4. CLO4: Gain insights into the financial environment in which organizations operate,
including the roles of financial markets, institutions, and intermediaries (REF:
PLO2& PLO5)
5. CLO5: Master the calculations related to the time value of money, such as present
value (PV) and future value (FV) of single sums, annuities, and perpetuities (REF:
PLO2)
6. CLO6: Understand the fundamentals of bond valuation, bond yields, and risk
assessment for long-term securities (REF: PLO2)
7. CLO7: Build critical thinking and analytical skills necessary for evaluating and
executing financing, investing, and operating decisions within an organization (REF:
PLO1, PLO2 & PLO3)
8. CLO8: Develop an understanding of the concepts of risk and return, including stand-
alone risk, risk-return trade-offs, and portfolio risk assessment (REF: PLO2 &PLO3)
9. CLO9: Introduce students to the core principles of Islamic finance, including concepts
such as Mudarabah, Musharakah, Murabaha, and Ijarah (REF: PLO4 &PLO5)
10. CLO10: Equip students with skills to interpret and analyze financial statements
through various metrics and tools in local land scape (REF: PLO2 & PLO4)

Course Skill Identification:

Based on the course learning outcomes, students will develop the
following skills:

1. Critical Thinking and Analytical Analysis

2. Understanding of Internal Controls
3. Decision-Making Skills
4. Problem-Solving
5. Business Process Knowledge
6. Technical Proficiency of Accounting Information Systems (AIS)
Weekly Contents Log
Week Module
1-2 Role of Financial Content Chapter – 1The Role of Financial Management (Page 1 – 16) (Fundamentals of
Management Source Financial Management by James C. Van Horne John M. Wachowicz, Jr. 13 th
Edition).
Intended Learning Objectives Status Remarks
 . Explain why the role of the financial
manager today is so important. Describe
“financial management” in terms of the
three major decision areas that confront
the
financial manager.
 Identify the goal of the firm and
understand why shareholders’ wealth
maximization is preferred over other
goals.
 Understand the potential problems arising
when management of the corporation and
ownership are separated (i.e., agency
problems).
 Demonstrate an understanding of
corporate
 governance. Discuss the issues underlying
social responsibility of the firm.
 Understand the basic responsibilities of
financial managers and the differences
between a “treasurer”
  and a “controller.”

Content Chapter – 2: The Role of Financial Management (Page 17 – 40) (Fundamentals

Source of
Financial Management by James C. Van Horne John M. Wachowicz, Jr. 13th
Edition).
Intended Learning
Status Remarks
Objectives
 Describe the four basic forms of business
Business & organization around the Globe – and the
3-4 Financial advantages and disadvantages of each.
Environments  Describe the purpose and makeup of
financial markets. Demonstrate an
understanding of how letter ratings of the
major rating agencies help you to judge a
security’s default risk.
 Understand what is meant by the “term
structure of interest rates” and relate it to a
“yield curve.”
5-7 Time Value of Content Chapter – 3: The Time Value of Money (Page 41 – 72) (Fundamentals of
Money Source Financial Management by James C. Van Horne John M. Wachowicz, Jr. 13th
Edition).
Intended Learning Objectives Status Remarks
 Explain why money has a different value
over time due to inflation, opportunity cost,
and risk, and emphasize the importance of
TVM in financial decision-making.
 Teach students how to compute the future
value of a single cash flow at a given interest
rate and the present value of a future cash
flow, laying the groundwork for evaluating
investments and comparing cash flows at
 different points in time.
 Enable students to calculate PV and FV for
both annuities (fixed periodic cash flows)
and perpetuities (infinite series of cash
flows), crucial for valuing bonds, leases,
retirement funds, and other financial
instruments.
 Introduce methods to discount or compound
a series of uneven cash flows, helping
students analyze real-world situations where
cash flows vary over time, such as project
evaluation and cash flow forecasting.
 Teach students to adapt TVM calculations
for different compounding intervals (e.g.,
annual, semiannual, quarterly, and monthly)
to assess the impact of compounding
frequency on investment value.
 Develop skills to calculate the interest rate,
number of periods, or payment amounts in
various annuity settings, applicable in loan
amortization, retirement planning, and
investment strategies.
 Use TVM principles in practical financial
decision-making, such as evaluating loans,
bonds, and investments, to improve students'
ability to assess financial options with time-
sensitive cash flows.
Content Chapter – 4: Bond Evaluation (Page 73 – 103) (Fundamentals of
Source Financial Management by James C. Van Horne John M. Wachowicz, Jr. 13th Edition).
Bond Evaluation  Intended Learning Objectives Status Remarks
8-9  Distinguish among the various terms used to
express value, including liquidation value,
 going-concern value, book value, market
value, and intrinsic value.
 Introduce students to the basic characteristics
and types of bonds, including government,
corporate, and municipal bonds, and
familiarize them with bond terminology such
as face value, coupon rate, maturity, and
yield to maturity (YTM).
 Equip students with the ability to calculate
the present value of future bond cash flows,
both interest payments and the principal
repayment, to determine a bond’s intrinsic
value based on discounting.
 Discuss how to value bonds with different
coupon payment structures, including
semiannual and annual coupon payments,
which are commonly encountered in bond
markets.
 Apply bond valuation concepts to practical
scenarios, enabling students to evaluate bond
investment opportunities, compare different
bonds, and make informed investment
choices based on risk-return profiles.
MID TERM EXAM
10-11 Stock Evaluation Content Chapter – 4: Stock Evaluation (Page 73 – 92) (Fundamentals of Financial Management by
Source James C. Van Horne John M. Wachowicz, Jr. 13th Edition).
Intended Learning Objectives Status Remarks
 Preferred stocks, and common stocks
evaluation
 To understand the dividend discount model
and its practical use in daily life.
 Calculate the rates of return (or yields) of
 different types of long-term securities.

12-13 Risk and Return Content Chapter – 5: Risk and Return (Page 97 – 126) (Fundamentals of Financial
Source Management by James C. Van Horne John M. Wachowicz, Jr. 13th Edition).
Intended Learning Objectives Status Remarks
 Understand the relationship (or “trade-off”)
between risk and return.
 Define risk and return and show how to
measure them by calculating expected return,
standard deviation, and coefficient of
variation.
 Discuss the different types of investor
attitudes toward risk.
 Explain risk and return in a portfolio
context,
and distinguish between individual security
and portfolio risk.
 Distinguish between avoidable
(unsystematic) risk and unavoidable
(systematic) risk; and explain how proper
diversification can eliminate one of these
risks.
 Define and explain the capital-asset pricing
 model (CAPM), beta, and the characteristic
line. Calculate a required rate of return using
the capital-asset pricing model (CAPM).
 Demonstrate how the Security Market Line
 (SML) can be used to describe the
relationship between expected rate of return
and systematic risk.
 Explain what is meant by an “efficient
financial market,” and describe the three
 levels (or forms) to market efficiency.
Content Chapter – 6: Risk and Return (Page 127 – 167) (Fundamentals of Financial
Source Management by James C. Van Horne John M. Wachowicz, Jr. 13th Edition).
Intended Learning Objectives Status Remarks
 Understand the purpose of basic financial
statements and their contents.
 Understand what is meant by “convergence”
in accounting standards.
 Explain why financial statement analysis is
important to the firm and to outside suppliers
of capital.
 Define, calculate, and categorize (according
to liquidity, financial leverage, coverage,
activity, and profitability) the major financial
ratios and understand what they can tell us
14-16 Financial Planning about the firm.
 Define, calculate, and discuss a firm’s
operating cycle and cash cycle.
 Use ratios to analyze a firm’s health and then
recommend reasonable alternative courses of
action to improve the health of the firm.
 Analyze a firm’s return on investment (i.e.,
“earning power”) and return on equity using
a Du Pont approach.
 Understand the limitations of financial ratio
analysis. Use trend analysis, common-size
analysis, and index analysis to gain
additional insights into a firm’s performance.

FINAL TERM EXAM

Question Paper: Each question in the mid and final term papers
will follow and based on CLOs of the subject.

Pedagogy Adopted and Tools:

The pedagogy adopted by teachers shapes their actions, judgments, and teaching strategies by
taking into consideration theories of learning, understandings of students and their needs, and
the backgrounds and interests of individual students.

Pedagogy Adopted Tools

1. Lectures White Board
2. Class Interactive sessions Projector – (Slides and Videos)
3. Interactive sessions with Book Reading
Professionals Research Articles
4. Case Study
5. Knowledge Café
Method of Assessment:
Method Details
Quiz Two surprise quiz tests will be conducted
during the semester
Quizzes 00 Marks
Assignments 00 Marks
Sessional Marks Class Participation 00 Marks
Rationale G. Projects 00 Marks
Any Other 00 Marks
Total 12 Marks
Week Assigned Week Due
Assignment 2 3
10 12
Group Project 14th & 15th Week
Mid-Term 8th Week as per Academic Calendar
Final-Term 16th Week as per Academic Calendar
Weightage of Examination / Assessments
Sessional Marks 20% (12 Marks)
Mid-Term 30% (18 Marks)
Examination
Final-Term 50% (30 Marks)
Examination
Required Learning Resources:
Text Book(s): Fundamentals of Financial Management by
James C. Van Horne John M. Wachowicz, Jr.
13th Edition)
 Reference Book Financial Management: Theory & Practice
15th Edition by Eugene Brigham (Author),
Michael Ehrhardt

Articles/Journals (Title, Already Mentioned in Weekly Plan.

Publisher)

Grading Criteria:
Letter Grade Percentage Marks
A 85% or above
A- 80% to 84%
B+ 70% to 79%
B 65% to 69%
B- 60% to 64%
C+ 55% to 59%
C 50% to 54%
C- 45 % to 49%
D 40% to 44%
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 you so that you learn how to make the best decisions possible,
understand and apply key marketing concepts, and 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.
It would be best if you were 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. It would be best if you contributed to the greater understanding of marketing and
marketing management. 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 d-evice 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.
Bloom Taxonomy
The Question papers will be designed based on the following bloom taxonomy parameters.
 Contact Details:
Course Specifications Developed By: Reviewed By
Dr. Safdar Husain Tahir
Associate Professor
Lyallpur Business School (LBS),
FE&MS, GC University, Faisalabad, Pakistan.
E-Mail : drsafdar@gcuf.edu.pk
Dated: 02-09-2024