BFFS2201 - Introduction to Finance
Overview
This course introduces students to the fundamental concepts, principles, and tools of finance for managerial and investment decision making. Based exclusively on Ross et al. as the main textbook source, the course explains the role of finance in business, the objective of financial management, agency issues, ethical conduct, financial markets, financial institutions, and the importance of value creation.
Students will learn how to read financial statements, distinguish accounting income from cash flow, calculate taxes and cash flows, and evaluate firm performance using financial ratios and DuPont analysis. The course also develops core quantitative finance skills, including time value of money, annuities, perpetuities, loan amortization, bond valuation, stock valuation, and discounted cash flow reasoning.
The second part of the course focuses on investment and financing decisions. Students will apply capital budgeting techniques such as NPV, IRR, payback, and profitability index; estimate incremental project cash flows; analyze risk and return; understand diversification and portfolio risk; estimate the cost of capital; and discuss the basics of capital structure, dividends, working capital, and short-term finance. Through case studies, textbook problems, and spreadsheet-based work, students are expected to build a strong foundation for advanced courses in corporate finance, investment, financial markets, and venture capital.
Learning Hours Composition:
- 42 hours face-to-face learning consisting of 14 sessions of lecturing, tutorial, and workshop activities.
- 28 hours of Structured Learning and Guided Discussions.
- 65 hours of Independent and Practice-Based Learning.
Managing Faculty:
Credit Point:
3 Credit(s)
Learning Hours:
45 hours x 3CPs = 135 hours
