Syllabus
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Course Code: ABM-305 Course Name: Specialisation- I: AGRI-BUSINESS MANAGEMENT - Agri-Business Finance |
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| MODULE NO / UNIT | COURSE SYLLABUS CONTENTS OF MODULE | NOTES |
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| 1 | Introduction to Agribusiness Finance: Agribusiness Finance; Agribusiness producers; Flow of fund in the economy; Importance of finance to agribusiness; Domestic trends in agribusiness finance; International trends. Agribusiness loans: Legal issues, terms, interest rates; Promisory Note; Parties to loan Transactions; Security Agreement; Mortgages versus deeds of trust; other loan terminology; life cycle of loan; default and foreclosure; determinants of interest rates. Time value of money, loan calculations and analysis; compound interest; the process of discounting; annuities; present value of an annuity; basic loan calculations; building an amortization schedule; loan balance; refinance analysis; cash budgeting. Capital budgeting and leasing; cost of capital; capital budgeting techniques other considerations regarding capital budgeting; lease and leasing. Financial statements; Generally accepted accounting principles and the farm financial standard council; the income statement; owner’s equity; the balance sheet; accrual adjusted income statement; statement of cash flows. Financial statement analysis; ratios analysis; common-size statement and horizontal analysis; risk in agribusiness; sources of business risk in agriculture; risk management in agriculture. Agriculture lending industry: commercial banks and farm credit system; other agribusiness lenders; venders/ trade credit; life insurance financing. |
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