BF (BCOM 4th)

UNIT–I

Business Finance: Conceptual foundations – finance function in business – scope and

objectives – Relation of finance with other business functions. Conflicts in profit versus value

maximisation principle. Role of Chief Financial Officer. Time Value of MoneyCompounding

and discounting techniques – concepts of annuity and perpetuity.

UNIT –II

Different sources of finance. Project financing – intermediate and long term financing.

Negotiating term loans with banks and financial institutions and appraisal thereof.

Introduction to lease financing, Venture capital finance. Cost of capital.

UNIT–III

Capital Structure: Optimum Capital Structure – Determinants and Theories. Leverage –

concept, measurement and significance. Capital Budgeting.

UNIT-IV

Working Capital Management: Cash securities, receivables and inventory management –

management of working capital – kinds of working capital - Determinants of Working

Capital. Dividend policy and decisions: Influencing factors – forms of dividend.