Business Finance
- Management Sciences
- 700 level
- 2 credit units
- 139 pages
- 13 units
This course introduces Business Finance concepts for Post Graduate Diploma students in Banking and Finance. It covers working capital management, including stock and cash management, and acquaints students with capital budgeting, capital rationing, and capital structure decisions. The course aims to provide a comprehensive understanding of business finance within firms and business organizations, enabling students to apply financial principles effectively.
About this course
- Difficulty
- Intermediate
- Study hours
- 156 hours
- Maths
- Intermediate
- Content
- Theoretical, practical, problem solving
- Practical work
- No
- Assignments
- Tutor Marked Assessments
- Final Examination
What you'll read
The real module and unit structure of BFN732, taken from the course material NOUN publishes.
One paragraph, so you can see how it reads
BFN732 · Unit 2: Cash Management
Successfully managing cash is an essential skill for small business developers, because they typically have less access to affordable credit and have a significant amount of upfront costs to manage while waiting for receivables. Wisely managing cash enables a company to meet unexpected expenses, and to handle regularly occurring events such as payroll distribution.
What you should be able to do
- Explain working capital management concepts
- Apply capital budgeting techniques
- Analyze capital rationing situations
- Evaluate capital structure decisions
- Calculate profitability index
- Understand theories of capital structure
What it prepares you for
- Financial Analyst
- Investment Banker
- Portfolio Manager
- Corporate Treasurer
- Management Accountant
- Banking
- Finance
- Investment Management
- Corporate Finance
- Accounting
Where it gets hard
The units students slow down on, and what makes each one heavy.
- Module 2: Capital Budgeting Decision
Unit 3: Net Present Value
Requires understanding of discounted cash flow techniques and time value of money, which can be challenging for students without a strong financial background.
- Module 2: Capital Budgeting Decision
Unit 4: Internal Rate of Return
Involves complex calculations and understanding of the relationship between discount rates and project profitability.
A suggested way through it
13 weeks, about 60 hours in total. Yours will differ.
- Week 1Module 1: Working Capital Management
Unit 1: Concept of Working Capital · 4 hours
Define working capital. Understand the concepts of net and gross working capital. Classify working capital types. Discuss the determinants of working capital.
- Week 2Module 1: Working Capital Management
Unit 2: Cash Management · 4 hours
Analyze cash management techniques. Explain the reasons for holding cash. Prepare a cash budget. Discuss receivables and payables management.
- Week 3Module 1: Working Capital Management
Unit 3: Stock Management · 4 hours
Define stock management. Identify different types of stock. Discuss the importance of stock management. Apply stock control methods. Understand the EOQ model.
- Week 4Module 2: Capital Budgeting Decision
Unit 1: Payback Period · 4 hours
Calculate payback period for even and uneven cash flows. Understand the decision rule for payback period. Evaluate the advantages and disadvantages of payback period.
Unit 2: Accounting Rate of Return · 4 hours
Calculate Accounting Rate of Return (ARR). Apply decision rules based on ARR. Evaluate the advantages and disadvantages of ARR.
- Week 5Module 2: Capital Budgeting Decision
Unit 3: Net Present Value · 4 hours
Calculate Net Present Value (NPV). Apply decision rules based on NPV. Evaluate the advantages and disadvantages of NPV.
- Week 6Module 2: Capital Budgeting Decision
Unit 4: Internal Rate of Return · 4 hours
Calculate Internal Rate of Return (IRR). Apply decision rules based on IRR. Evaluate the advantages and disadvantages of IRR.
- Week 7Module 2: Capital Budgeting Decision
Unit 5: Profitability Index · 4 hours
Calculate Profitability Index (PI). Apply decision rules based on PI. Evaluate the advantages and disadvantages of PI.
- Week 8Module 3: Capital Rationing
Unit 1: Types and Causes of Capital Rationing · 4 hours
Define capital rationing. Identify the causes of capital rationing. Discuss the advantages and disadvantages of capital rationing. Explain hard and soft capital rationing.
- Week 9Module 3: Capital Rationing
Unit 2: Different Situation of Capital Rationing · 4 hours
Analyze different situations of capital rationing. Understand the relationship between DPI and EPVI. Apply project selection methods based on calculations. Rank projects based on profitability.
- Week 10Module 3: Capital Rationing
Unit 3: Project selection methods · 4 hours
Apply project selection methods. Understand the relationship between DPI and EPVI. Apply project selection methods based on calculations. Rank projects based on profitability.
- Week 11Module 4: Capital Structure Decision
Unit 1: Concept of Capital Structure · 4 hours
Define capital structure. Differentiate between capital structure and financial structure. Discuss the variables affecting capital supply. Classify capital structure according to nature, sources, ownership, and cost behavior.
- Week 12Module 4: Capital Structure Decision
Unit 2: Financing Structure and Capital Structure · 4 hours
Analyze the Net Income Approach. Analyze the Net Operating Income Approach. Understand the Traditional Approach. Discuss the Modigliani-Miller (M-M) Hypothesis.
Unit 3: Theories of Capital Structure · 4 hours
Analyze the Net Income Approach. Analyze the Net Operating Income Approach. Understand the Traditional Approach. Discuss the Modigliani-Miller (M-M) Hypothesis.
- Week 13Module 4: Capital Structure Decision
Unit 4: Planning of Capital Structure · 4 hours
Discuss factors for capital structure planning. Analyze financial leverage, EBIT-EPS analysis, and cost of capital. Consider flexibility, control, legal constraints, and industry standards.
Preparing for the exam
- Review all formulas for capital budgeting techniques (NPV, IRR, Payback Period)
- Practice calculating working capital ratios and interpreting their implications
- Create a study group to discuss complex capital structure theories
- Focus on understanding the assumptions and limitations of each capital budgeting method
- Work through practice problems involving capital rationing scenarios
- Develop a time management strategy to allocate sufficient time to each module
- Create flashcards for key terms and definitions related to financial management
- Review past TMA questions and solutions to identify areas of weakness
- Attend all tutorial sessions and actively participate in discussions
- Create concept maps linking working capital management, capital budgeting, and capital structure decisions
Questions students ask about this course
What is BFN732 about?
This course introduces Business Finance concepts for Post Graduate Diploma students in Banking and Finance. It covers working capital management, including stock and cash management, and acquaints students with capital budgeting, capital rationing, and capital structure decisions. The course aims to provide a comprehensive understanding of business finance within firms and business organizations, enabling students to apply financial principles effectively.
How many units does BFN732 have?
BFN732, Business Finance, has 13 units across 4 modules, over 139 pages of course material. You can read it one unit at a time.
How many credit units is BFN732?
BFN732 carries 2 credit units, at 700 level in Management Sciences.
Is BFN732 hard?
BFN732 is rated intermediate level, with intermediate mathematical content. It is mostly theoretical, practical and problem solving work.
How long does BFN732 take to study?
About 156 hours of study, spread across its 13 units.
How is BFN732 assessed?
BFN732 is assessed by Assignments, Tutor Marked Assessments and Final Examination.
What can I do with BFN732?
Financial Analyst, Investment Banker, Portfolio Manager, Corporate Treasurer and Management Accountant.