3 28 Hours of Lecture 14 Hours of Tutorial LAN Credit Hours Equivalence: Hours of Lecture 14 Hours of Tutorial. Abd Halim Mustapha

Transcription

1 1. Title of subject Financial Management I. Subject code TFN Status of subject Major 4. Credit Hour 3 8 Hours of Lecture 14 Hours of Tutorial LAN Credit Hours Equivalence: Semester Trimester 3, Delta level 6. Pre-Requisite Economics I (TEC 111) 7. Methods of Teaching 8 Hours of Lecture 14 Hours of Tutorial 8. Assessment Quizzes/Assignments 0% Mid-term exam 30% Final Exam 50% Total 0% 9. Teaching staff (Proposed) Abd Halim Mustapha. Objective of subject This course is designed for the general business students. The main objective is to provide students with a thorough grounding in the concepts, analytical techniques and practical applications of financial management. During this course, the students could be able :- To develop basic tools for the three pillars of finance: 1. Valuation. Risk management 3. Intertemporal tradeoffs To acquire a working knowledge of the financial system including how it both enables and constrains the financial manager To acquire a working knowledge of the financial market practices and key financial instruments To apply financial tools in an integrated manner to incorporate financial decisions: 1. Investment decisions (what projects to take). Financing decisions (how firms use financial marketing to source funds manage risk 3. Business valuation (how marketing, operations, structural change decisions affect the value of a business Measure and manage risk 11. Synopsis of subject This course covers the foundations and financial background, cash flows and

2 financial analysis, the financial system and interest, time value of money, the valuation and characteristics of bonds, the valuation and characteristics of stock, risk and return, capital budgeting, cost of capital, capital structure and leverage, dividends, the management of working capital, and corporate restructuring and international finance. Kursus ini meliputi asas dan latar belakang kewangan, aliran tunai dan analisa kewangan, sistem kewangan dan faedah, nilai masa wang, penilaian dan kriteria bon, penilaian dan kriteria stok, risiko dan pemulangan, kos modal, struktur dan pengukuhan modal, dividen, pengurusan modal kerja, susun semula syarikat dan, dan kewangan antarabangsa. 1. Learning Outcomes At the completion of the subject, the students should be able to: Identify various types of financial tools Apply financial tools to analyse a corporation s financial standings correctly Calculate using financial calculators effectively. Programmes Outcomes Ability to apply soft skills in work and career related activities Degree of Contribution (%) Good understanding of fundamental concepts 0 Acquisition and mastery of knowledge in specialized area 0 Acquisition of analytical capabilities and problem solving skills Adaptability and passion for learning Cultivation of innovative mind and development of entrepreneurial skills Understanding of the responsibility with moral and professional ethics Details of subject Topics Covered Hours

3 1.Foundations And Financial Background Financial assets and financial market Financial management The importance of cash flow Forms of business organisation and their financial impact Accounting system and financial statements The income statement The balance sheet Taxes. Cash Flows And Financial Analysis Financial information The statement of cash flows Ratio analysis 3. The Financial System And Interest The financial system The stock market and stock exchanges Interest The components of an interest rate. 4. Time Value Of Money Amount problems Annuity problems The future value and present value of an annuity 5 5. The Valuation And Characteristics Of Bonds The basic of value Bond valuation Characteristics of bonds 6. The Valuation And Characteristics Of Stocks Common stock Growth models of common stock valuation Characteristics of common stock Preferred stock 7. Risk And Returns Why study risk and return? Portfolio theory 8. Capital Budgeting Characteristics of business projects Capital budgeting techniques

4 9. Cost Of Capital The purpose of cost of capital Cost of capital concepts Calculating the WACC The marginal cost of capital. Capital Structure And Leverage, And Dividens Financial leverage Operating leverage Capital structure theory Dividends as a basis for value Understanding the dividend decision The dividend controversy 11.The Management Of Working Capital Working capital basics Services of short term financing Cash management Managing accounts receivables Inventory management 3 1.Corporate Restructuring And International Finance Mergers and acquisition Leverage buyouts (LBOs) and proxy fights Divestitures Bankruptcy and reorganisation of failed businesses Currency exchange International capital markets Political risk Transaction and transaction risk Total Contact Hours 8 Tutorial Foundations And Financial Background Cash Flows And Financial Analysis The Financial System And Interest Time Value Of Money The Valuation And Characteristics Of Bonds Risk And Returns Capital Budgeting Cost Of Capital The Management Of Working Capital Corporate Restructuring And International Finance 14. Text Text book Brigham, Eugene F. and Joel F. Houston (1998), Fundamentals of Financial Management, 8/e, Dryden Press, Orlando, Florida

5 Reference books 1. Van Horne, James C and John M. Wachowicz Jr (1998), Fundamentals of Financial Management, /e, Prentice Hall Inc, New Jersey. Gallagher, Timothy J and Joseph D. Andrew JR (1997), Financial Management, 1/e, Prentice Hall Inc, New Jersey 3. Current and online newspapers and magazines such as The Star, Investor Digest, Asian Wall Street Journal, Corporate World and more