Course Descriptions - Bachelor of Commerce [Banking and Finance]

FIN 301E MONETARY THEORY AND PRACTICE

Introduction: Definitions, functions, qualities, and historical evolution of money; Issues in monetary economics; The demand for money; The supply of money; Commercial banks and financial institutions; Financial intermediaries; Central banking and monetary policy; money in the open economy.
Prerequisite: BCM 210 Business Finance

FIN 303 MONEY AND CAPITAL MARKETS

Role of money and capital markets. Central Banking and role of a Central Bank. Commercial Banks. Banking legislation in Kenya. Non-bank financial institutions. Non-bank thrift institutions. Other non-bank financial institutions. The regulation of financial institutions. The stock exchange market and capital markets.
Prerequisite: BCM 210 Business Finance

FIN 304 PUBLIC FINANCE

Introduction: An overview of public finance. The link between public finance and welfare economics. Pareto optimality and efficiency of competitive markets. Market failure and the rationale for government's intervention in the economy. Public expenditure theory. The principles of taxation. Tax incidence. Tax design. Taxation and public expenditure in developing countries.
Prerequisite: BCM 210 Business Finance

FIN 305 INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT

The investment background. Developments in investment theory. Valuation principles and practices. Analysis and management of bonds. Analysis of common stocks. Derivative security analysis. Investment companies and evaluation of portfolio performance.
Pre-requisite: BCM 102 Fundamentals of Accounting II & BCM 210 Business Finance

FIN 307 FINANCIAL MANAGEMENT

Development of financial analysis skills for effective financial decisions. Basic concepts of financial management. Financial structure and the use of leverage. Relationships of financial lineage to operating leverage. Capital budgeting under uncertainty and capital rationing. Theory of financial markets; portfolio and valuation theory. Speculative markets and derivative securities; option pricing models and their application to the valuation of contingent claims. Special topics in the theory of corporate financing and investing decisions.
Prerequisite BCM 210 Business Finance

FIN 308 CAPITAL BUDGETING

Nature of capital budgeting decisions: Measures of investment worth, budget process and planning, time value of money, and rate of discount; Net present value versus internal rate of return; Annual equivalent cost: make or buy, replacement chains, mutually exclusive alternatives with different lines; Use of cash flows in evaluating investments; Corporate income tax and investment decisions; Capital budgeting under uncertainty and capital rationing; Rate of discount; Introduction to portfolio analysis; Capital asset pricing model; Buy or lease; Capital budgeting and inflation; Investment Timing. Foreign Investments.
Prerequisite: BCM 210 Business Finance

FIN 401E BANKING LAW AND PRACTICE

Basic concept of banking. Banking and financial markets. Negotiable instruments.
Banker and customer. Management of deposits. Cash loans and other asset accounts. Banker's securities, lien guarantees etc. Foreign exchange and foreign bills. International banking. Electronic Banking. Current issues in banking including liquidity, capital adequacy, and problems, loans etc.
Prerequisites: FIN 301 Monetary theory and practices & FIN 303 Money and Capital Markets

FIN 403 INTERNATIONAL FINANCE

International economic framework: International finance and the international challenge balance of payments and a nations international profit. International monetary arrangement and adjustment mechanisms assemble trade and other parity relationships, exposure measurement and management. International capital markets: Overview of global capital markets; eurobonds and other international financial instruments customized risk control agreements. International investment: Investing in foreign operations, international capital budgeting, tax considerations and political risk. International financial system and strategies for its stabilization, the emerging international financial architecture.
Prerequisite: FIN 303 Money and Capital Markets

FIN 404 MARKETING OF FINANCIAL SERVICES

Customer service: Money transmission and corporate services. Current accounts. Saving and investment. Insurance, pension executorship and trustee services. The competitive environment: financial intermediaries. Competition from other financial services organizations. Cost and profitability: Financial systems banks financial structure. Basic marketing principles: Marketing financial services. Financial/customer service.
Prerequisite: BCM 208 Principles of Marketing

FIN 405E REAL ESTATE FINANCE

Real estate business: an overview. Instruments of real estate financing. Rights in case of debt. Co-operatives and Condominiums. Mortgage market and fund flows. Saving and loan associations. Sources of real estate finance. Creative financing Mortgage classification. Private mortgage insurance. Industry regulations. Direct government involvement in real estate finance. Taxes and liens.
Prerequisite: BCM 210 Business Finance

FIN 406 FINANCIAL MODELING AND FORECASTING

Rationale for financial forecasting. Understanding basic building blocks of financial forecasting. The financial statement of a firm, vertical analysis among parameters of financial statement versus horizontal analysis of financial statement parameters. Tools of analysis. Setting parameters for future growth and/ or change. Use of computer packages in financial forecasting.
Prerequisite: BCM 307 Business Statistics, BCM 206 Management Mathematics II & UCC 104 Concepts of Computer Applications

FIN 407 INVESTMENT BANKING

The investment banking industry. Financial products and procedures. Optional buying and selling. Commodity features and foreign exchange contracts. Hedging arbitrages and margin trading. Portfolio management, measuring portfolio performance and bench marking diversification and risk analysis. The effect of taxes on investment strategy and security prices. Issues in estimating future earnings and dividends. Development in investment ranking practice.
Prerequisite: FIN 307 Financial Management