COURSE OUTLINE

COURSE PURPOSE AND OBJECTIVES

This being the first course in the Finance field, emphasis will be placed on the basis of Finance, which will enable students to pursue further studies in the wide area of Finance.

At the end of the course, students should be able to evaluate alternative business/investment projects and the firm‟s performance over time.

COURSE CONTENT

Lesson 1. THE SCOPE AND NATURE OF FINANCE 1

 Overview of Finance

 Financial Management Functions and Decisions

 Goals of a firm

 Types of business organizations

 . Questions

Lesson 2. PERSONAL

 Introduction

 Personal goals

 Economic goals

 Key words

 Questions

Lesson 3. THE FINANCIAL ENVIRONMENT

 Introduction

 Types of financial institution and markets

 Regulation of financial institution and markets

 International financial institutions

 The Kenyan financial environment

 Key words

 Questions

Lesson 4. Time value of money

 Introduction

 Simple Interest and Discount

 Compound Interest

 Annuities

Lesson 5. RISK, RETURN AND VALUATION

 Concept of risk

 Return

 Investment Risk

 Valuation of Assets

 Valuation of Bonds

 Valuation of Shares

 Key word

 Questions

Lesson 6: FINANCIAL ANALYSIS

 Introduction

 Standard of comparison

 Types of ratios

 Liquidity

 Leverage

 Activity ratios

 Profitability

 Advantages and limitations of ratio analysis

 Summary of Ratios

 Questions

Lesson 7 FINANCIAL AND PROFIT PLANNING

 Introduction

 Financial forecasting

 Profit planning

 Essential of budgeting

 Preparation of budget

 Key words

 Questions

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