Syllabus

Daffodil Institute of Information Technology (DIIT)

Third Year, Sixth Semester

BBA (Honours) in Tourism and Hospitality Management

Fundamentals of Finance

Course Code: 530919

Google Class code: x5gwqff

Course Teacher: Md. Jahidul Islam Rony

Senior Lecturer & Coordinator

Tourism and Hospitality Management

E-mail: rony_nu@diit.info

Cell: 01719678798

Course Objectives: Fundamentals of Finance highlights the modern, analytical approaches to corporate finance decision-making. The course has been structured to focus on finance and its implications in the financial decision-making process and policy. The broad objective of this course is to provide students with sound theoretical knowledge on principles and practices of financial management. Student will earn conversant with cost of capital, capital budgeting and investment decisions, value of money, risk and risk management through this course.

Course Contents:

1. Introduction: Definition; Business finance; Functions of financial manager; Goals of the firm; Social responsibilities of the firm.

2. Concepts of Risk and Return: Definition of risk; Difference between risk and uncertainty; Relation between risk and return; Measurement of risk; Total risk; Portfolio risk; Corporate risk; Market risk; Significance of risk in the field of financial environment.

3. Time Value of Money and its Application: Time value definition; Present value; Future value; Concept of annuity; Compounding effective rate of return.

4. Bonds and Convertible securities: Bonds; Types of long term debt; Important bond

features; Bond refunding; Junk bonds; Advantages and disadvantages of financing with debt; Convertible securities; Conversion terms; Valuation of convertibles; Bond ratings; Provisions in bond indenture.

5. Introduction to Capital Budgeting: Concept of capital; Budgeting capital; Budgeting decisions rules; Evaluation of the decision rules; Comparison of NPV and IRR methods; Comparison of the NPV and P1 methods; Multiple IRR.

Text Books:

1. Charles P Jones. Introduction to Financial Management. Homewood, IL. Irwin.

2. Stanley B Block and Geoffrey A Hirt. Principles of Finance. Richard D Irwin.

Reference Books:

1. Brigham and Gapenski Principles of Finance, The Dryden Press
2. Principles of Finance by Md. Jahidul Islam Rony
3. Principles of Finance by Muhammad kamruzzaman
4. Principles of Finance by F.M. Shahidullah