Financial Management
Program MBA
Course Teacher / Instructor: Professor Dr. Mostafa Kamal
Email: m.kamal@daffodilvarsity.edu.bd
Course Code- FIN 501
Course Title- Financial Management
Class Routine: Friday, 2:00PM to 4:00PM
Syllabus
Financial Management
This is the introductory course in finance and covers the basic tools and techniques of making financial decisions. Major topics include financial market and securities, financial statements and their analysis using financial ratios, time value of money, long-term investment analysis---capital budgeting, cash flow estimation, project evaluation techniques under implicit and explicit risk conditions, basics of valuation and cost of capital; capital structure decisions, and optimal capital budget. (3 credits)
Prerequisites: ACT 201
Course Outlines
Learning Objectives:
Upon successful completion of this course, students will have reliably demonstrated the ability to:
1. Explain the goals and functions of financial management.
2. Describe and evaluate the basic features of financial markets
3. Prepare and present Cash Flow statements.
4. Analyze financial statements and describe the economic health of a company.
5. Explain the benefits of financial forecasting and prepare proforma financial statements.
6. Calculate and explain operating and financial leverage.
7. Decide the form and amount of short term financing that best suits a given corporate need, based on historical and projected analysis.
8. Recommend techniques for managing working capital effectively.
Course Description:
This is an introductory course in financial management, with an emphasis on the major decisions made by the financial executive of an organization. The student studies topics in the financial management of profit-seeking organizations. A major objective is the development of analytical and decision-making skills in finance through the use of theory questions and practical problems.
Learning Outcomes:
# | Learning outcome | Graduate profile capability* |
LO1 | Identify the objective of the firm, and the role of managerial finance and outline the implications of the separation of ownership and control. | 1. Disciplinary knowledge and practice |
LO2 | Demonstrate the importance of cash flows to financial planning and apply a variety of time-value-of-money formulae and techniques. | 1. Disciplinary knowledge and practice |
LO3 | Discuss the relationship between risk and return and demonstrate how risk is measured through Capital Asset Pricing Model (CAPM). | 1. Disciplinary knowledge and practice 2. Critical thinking |
LO4 | Explain the general concept of valuing financial assets and calculate the value of debt and equity securities. | 1. Disciplinary knowledge and practice |
LO5 | Evaluate long-term investment decisions by applying a variety of capital budgeting techniques and appraising risk and refinements in capital budgeting. | 3. Solution seeking 4c. Engagement (Collaboration) |
LO6 | Evaluate short-term financial decisions and explain the costs and benefits of different working capital management financing strategies. | 3. Solution seeking |
LO7 | Evaluate long-term financial decisions and describe the factors that influence a firm’s optimal capital structure and payout policies | 3. Solution seeking |
LO8 | Explain the importance of international managerial finance and risk management using simple hedging strategies | 3. Solution seeking 4b. Communication (Written) |
Course Content:
Financial Management concentrates on nine major topic (chapter) areas each covered in a Unit (chapter):
Chapters:
1. The Role of Managerial Manager & the Financial Market Analysis
2. The Volume Profit Relationship
3. Financial Statements and Ratio Analysis
4. Interest Rate and Securities Valuation
5. Capital Budgeting
Mid Term Examination
6. Risk and Return
7. Cost of Capital and Long-Term Financial Planning
8. Leverage and Capital Structure
9. Derivative Securities and Corporate Finance
10. Dividend Policy
Student Learning Outcomes (From the following Link)
https://www.courses.business.auckland.ac.nz/CoursePdfs/FINANCE251.pdf
Text Book: Required Course Materials:
Fundamentals of Corporate Finance – Stephan A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Gordon S. Roberts McGraw Hill Ryerson
Reference Book
i. Brealey, Richard A. Myers, Stewart C. Allen, Franklin (2008). Principles of Corporate Finance .
ii. Gitman, Lawrence J. (2018). Principles of Managerial Finance. San Diego: Pearson
Case Studies
Articles
web link