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B.Com. (Accounting & Finance)
Third Year
BUSINESS FINANCE

Syllabus

Unit – I
Finance – Functions – Relations of finance with other functional areas of
business – Objectives of business finance.
Unit – II
Financial Analysis – Funds Flow analysis – Sources and uses of Funds – Cash
Flow analysis,
Ratio Analysis – Classification – Limitations – Financial forecasting – Proforma
– Income statement and Balance Sheet

Unit – III
Management of Accounts Receivable – Form of Receivables – Selecting and
Evaluating Receivable – Collection of Receivables – Management of working capital –
Measurement of working capital – Kinds of working capital – Determinants of
Working Capital.

Unit – IV
Capital Structure – Raising long Term funds – Cost of Capital – Concept of cost
of capital – Cost of external and internal (retained) earning - cost of Equity – Cost of
Long Term Debt – Cost of preferred stock.

Unit – V
Dividends – Determinents of Dividend Policy.

Books for Reference
1. I.M. Pandey – Financial Management, Vikas Publications, New Delhi
2. S.C. Kuchal – Financial Management

3. James Van Horne – Financial Management and Policy, Tata McGraw Hill
Ltd, New Delhi.

4. Weston and Bringham – Managerial Finance
5. Lawrence J. Gitman – Principles of Managerial Finance.