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  • 7/29/2019 EF Outline

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    Bahria University(Islamabad Campus) Department of Management

    Sciences

    Course Title:

    Entrepreneurial Finance

    CATALOGUE DESCRIPTION

    Credit Hours: Three (3) Class: MBA 3Semester: 3

    rdSemester Section: Y & D

    Instructor: Annam Ahsan

    COURSE DESCRIPTION

    Entrepreneurial Finance is designed to help managers/students make better investment and financingdecisions in entrepreneurial settings. The course covers all stages of the process; from start up to

    harvest. The course is designed to focus on understanding and interpreting financial numbers and

    developing analytical techniques that are useful in entrepreneurial settings. The course is primarilyaimed at people who may be involved in an entrepreneurial venture at some point in their careers

    whether in a large organization, a turnaround, a management buyout or a startup. The course will alsobe useful for future private equity decision makers.

    COURSE OUTCOMES

    Assess the timing and amounts of financial needs Estimate risks and expected returns of financial claims Evaluate alternative new venture strategies Estimate the effects of complex options on value Design and negotiate deals Address information and incentive problems Understand the institutions of new venture finance Develop a business plan to attract outside funding

    COURSE OBJECTIVES

    Be able to describe the evolution of thinking about entrepreneurship Understand how new venture finance is different from corporate finance Understand why the objective of maximizing value for the entrepreneur is central to new

    venture finance Be able to understand the process of new venture formation from inception of the idea to

    harvesting of the investment Recognize that studying new venture finance can contribute to better decision-making and

    increased potential for success

    TEXT BOOKS (S) AND REFERENCES

    1Entrepreneurial Finance (2

    ndEd.) by Leach and Melicher, Thomson South-Western Publishing

    Company.

    2 Entrepreneurial Finance (2nd

    Ed.) by Smith and Smith, Wiley Publishing Company.

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    Bahria University(Islamabad Campus) Department of Management

    Sciences

    ASSESSMENT EVALUATION

    Students assessment will be based on their ability to demonstrate their understanding of the concepts

    and theories learnt in the course. Students will be evaluated on the basis of a demonstration of theirability to forecast the financials, do break-even analysis, and valuation of a new venture. They will berequired to show skills to develop a complete business plan.

    ITEM ASSESSMENT TASK WEIGHT TOTAL MARKS

    1 Final Examination 40% 40

    2 Mid-Term Examination 25% 25

    3 Quizzes 15% 15

    4 Final Project 10% 10

    5 Individual Assignments 10% 10

    GRADE: SCORES OBTAINED:

    A 87 %

    B + 8086 %

    B 7279 %

    C + 6671 %

    C 6065 %

    D 5059 %

    F 50 %

    Teaching Methodology:

    The teaching methodology for this course will primarily be lecture based, with significant classinteraction. However, this method will be supplemented with a range of other teachingmethodologies as well.

    Mini Cases/Readings to be used as class readings as well as assignments Project/Case study Analysis Question Practice Sessions Quizzes, both announced and unannounced.Attendance:Minimum 75% attendance is required. This is student responsibility to follow up on what they mayhave missed due to absence from a teaching session through interaction with fellow students whoattended the class.

    Late Submission:There will be no retake of a quiz that a student misses. Late submission of assignments and caseanalysis is discouraged and will be penalized by 10% of the assigned marks for each day of latesubmission.

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    Bahria University(Islamabad Campus) Department of Management

    Sciences

    Dishonest Practice and Plagiarism:Students are expected to avoid plagiarism. Plagiarism involves claiming some one else work as ones

    own. The fact that a student might do it unintentionally still constitutes plagiarism and hence is strictly

    prohibited. Students are expected to take reasonable care to ensure originality of their work. Theexistence of plagiarism will result in zero marks on the assignment and will be notified to Head ofDepartment for further disciplinary actions.

    COURSE CONTENTS / SYLLABUS BREAKDOWN IN LECTURES

    Week # Topics Covered

    1 Introduction to Entrepreneurial Finance, Entrepreneurship Fundamentals &

    Sources of Entrepreneurial Opportunities

    2 Forms of Business Organization, Successful Venture Life Cycle, Sequence &

    Sources of Financing

    3 Deal Structure, Pre and post money valuation, Intellectual Property Rights

    4 Business Plan

    5 Real Options and Decision Trees

    6 Financial Statements: Measuring Financial Performance

    7 & 8 Evaluating Financial Performance

    9 Financial Planning: Short term and Long term

    10 Financial Forecasting

    11 Venture Valuation & Equity Valuation Models

    12 VC Valuation Methods

    13 Financing Alternatives

    14 Harvesting

    15 Presentations

    16 Revision