CARLETON UNIVERSITY 
BUSI 2505: Business Finance II 
Comprehensive Study and Exam Preparation Guide 2025 
 
Part 01: About This Guide 
Part 02: Sample Examination Paper 
Part 03: Detailed Solutions and Explanations 
Part 04: Study Tips for Students 
 
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BUSI 2505: Business Finance II - Carleton University

C$35.00

ACADEMIC YEAR 2025 - 2026

University	Carleton University
Study Level	Undergraduate
Subject	BUSI 2505
Long Title	Business Finance II
Notes Title	Comprehensive Study and Exam Prep Guide
Page Length	36

Prepare for the BUSI 2505: Business Finance II final exam at Carleton University with this comprehensive, course-aligned exam guide. It features exam-style questions and practical advice on common pitfalls. You’ll gain a clear picture of how the final is assessed and structured, along with the likely style and range of questions you may encounter. The guide organizes the syllabus logically, highlights and explains essential concepts and methods in each topic, and provides step-by-step worked examples showing how to apply them. Use it throughout revision to check understanding, practise under exam conditions, and build confidence for a strong performance on test day.

This course, BUSI 2505: Business Finance II equips students with the skills to make informed financial decisions by forecasting after-tax cash flows and accounting for uncertainty in available information. Emphasis is placed on managing risk within business operations and applying discounted cash flow (DCF) techniques to evaluate projects and business strategies. Students will also explore key financial topics such as capital budgeting, project evaluation, risk and return, cost of capital, raising capital, leverage, capital structure, dividend policy, short-term financial planning, lease financing, and mergers & acquisitions.

Prerequisites for this course include BUSI 1002 or BUSI 1005, BUSI 2504 (minimum grade of C), ECON 1001 and ECON 1002 (or ECON 1000), and MATH 1009 (minimum grade of C-). These requirements are strictly enforced by the School of Business, with waivers granted only by the Undergraduate Program Supervisor. Successful completion of BUSI 2505 with a grade of C+ or higher is mandatory to progress to BUSI 3500, BUSI 3502, and BUSI 3512. Through this course, students will gain practical insights into optimal capital structure decisions and the evaluation of dividend policies, preparing them for advanced financial management challenges.

SUBJECT	COURSE TITLE
BUSI 1001	Principles of Financial Accounting
BUSI 1002	Management Accounting
BUSI 1004	Financial Accounting for Business Students
BUSI 2002	Intermediate Accounting II
BUSI 2121	Introduction to Organizational Behaviour
BUSI 2204	Basic Marketing
BUSI 2501	Business Finance
BUSI 2505	Business Finance II
BUSI 2601	Business Law
BUSI 3001	Accounting for Business Combinations
BUSI 3502	Investments
BUSI 3512	Derivatives
ECON 1001	Introduction to Microeconomics
ECON 1002	Introduction to Macroeconomics
ECON 2030	Intermediate Microeconomics II: Consumers & General Equilibrium
ECON 2102	Intermediate Macroeconomics I
ECON 2210	Introductory Statistics for Economics
ECON 2220	Introductory Econometrics
ECON 4706	Econometrics I
ECON 4713	Time-Series Econometrics
PSYC 2002	Introduction to Statistics in Psychology
STAT 2507	Introduction to Statistical Modeling I
STAT 2509	Introduction to Statistical Modeling II

BUSI 2505: Business Finance II - Carleton University

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