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Business Finance IISession : Fall 2010

Course Instructor: Muhammad Misbah Hashmi

Contact: 0300 294 8997

Institute of Business & Technology

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Grading Criteria

Institute of Business & Technology

Quiz (1 & 2) 10%

Mid-Term Exam 20%

Attendance & Class Participation 05%

Assignments/ Surprise Quizzes/ Presentation 15%Final Exams 50%

Total 100%

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Course Outline till Mid Term

Funds Analysis / Management & Financial Planning

Cash & Marketable Securities Management

Account Receivables & Inventory Management

Capital Budgeting & Estimating Cash flows

Institute of Business & Technology

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Funds Analysis / Management&

Financial Management

Institute of Business & Technology

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ScopeoftheStudy

Fund Managers at Security Firms

Fund Manager is powerful portfolio management individual /

personnel who manage the Firms Funds for making

maximum profit

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Institute of Business & Technology

ScopeoftheStudy

Financial Researchers

Financial Researchers are Financial Analyst for the

organization provide analysis for financial decision

making.

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ScopeoftheStudy

Dealers or Investors

A legal term for a Person that buys and sells securities before selling the

securities to customers on behalf of the Fund Management Firms

describe the particular types of people and companies that regularlypurchase equity or debt securities for financial gain in exchange for funding

an expanding company

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Institute of Business & Technology

ScopeoftheStudy

Financial Auditors

Financial auditors are the auditors who gives an independent

opinion on the Firms Financials

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ScopeoftheStudy

Risk Analysts

Risk Analyst is a Certified Risk Professional who assess Risk

for the Firm

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Institute of Business & Technology

ScopeoftheStudy

Treasurers

A treasurer is the person responsible for running the

treasury Department of an organization

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Institute of Business & Technology

ScopeoftheStudy

Treasury Department

The core function of a treasury department at any bank is the measuring,

monitoring, and controlling of interest rate risk (IRR). IRR is the risk that

changes in prevailing interest rates will negatively impact the value of the

bank's assets and liabilities

Liquidity Management. Maintaining mix between Surplus and Deficit

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Institute of Business & Technology

Disadvantages ofbeing Fund Managing Firm

Profits are directly Linked with the profit of the market Loose cliental when performing in bad market conditions

Good Fund Managers are Expensive

High Demand ofGood Fund Managers (Retaining issue)

Firms Performance is dependent on Some Individual

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Institute of Business & Technology

Role (Importance)ofFund Managers

Assets Allocations

Stocks, Bonds, Real Estate or Commodities

Risk & Return (Short as well as long Term)

Concentration Market Limits

Various Investment Techniques

Growth (Investing in rapidly growing portfolios), High Risk & return

Value (Investing in Slowly growing portfolios), Low Risk & Return

Market Neutral (Hedging)

Small Capitalization

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Institute of Business & Technology

Risk Adjusted Performance Measurement

Modern portfolio theory (MPT) is a theory of investment

which attempts to maximize portfolio expected return for a

given amount of portfolio risk, or equivalently minimize risk

for a given level of expected return, by carefully choosing the

proportions of various assets.

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Institute of Business & Technology

What is Financial Planning

Forecasting Three Primary Financial Statements to build a

good Business Plan

I:e financial statement , cash flow statement, and profit and

loss statement.

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What is Business Plan

A business plan is a formal statement of a set of business goals,

the reasons why they are believed attainable, and the plan for

reaching those goals. It may also contain background

information about the organization or team attempting to reach

those goals

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Ways ofFinancial Forecasting

Trend Analysis

Industry Analysis

Portfolio Analysis

etc