BBA/B.Com Business Finance Paper
UGC NET (Commerce / Management / Economics)
CA (Chartered Accountant – ICAI)
AAI Senior Assistant (Accounts)
BBA 2074 - Business Finance - I
Unit 1 – Introduction of Business Finance:- Evolution of Business Finance. Scope of Finance, Finance functions. Financial Manager’s role. Financial Goal : Profit versus wealth, Conflict of Goals, Management Versus owners. Financial Goal and Firms Objectives. Sources of Finance – Ordinary Shares. Rights Issue of Equity Shares, Debentures, Preference Shares, Terms Loans. Important Features, advantages and Limitations of various type of sources of fund. Retained earnings as an internal source of fund.
Unit 2 - Capital structure and Leverage – Meaning of Capital structure, Features of an appropriate Capital Structures. Capital Structure Theories. Meaning of Financial Leverage, Measures of financial Leverage, Financial leverage and shareholders Return, Operating Leverage – concept and Implications. Combining financial and Operating leverage. Venture capital financing – Meaning and significance of venture capital. Development of Venture capital in
Unit 3 – Cost of Capital – Meaning and Significance of cost of capital. The cost of capital and opportunity cost concept. Determining component cost of capital – cost of equity, Cost of preference shares and cost of Debt. Weighted Average Cost of Capital (WACC). Flotation Cost, Cost of Capital and Investment Analysis.
UPDATING....................................................................WAIT