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MGMT3048 Course Outline SemII 2012

This document outlines the course details for Financial Management II at the University of the West Indies, Mona. The course covers advanced topics in financial management including capital budgeting, capital structure, dividend policy, working capital management, international business finance, and corporate risk management. It is taught over 13 weeks with class times on Mondays, Tuesdays, and Wednesdays. Students will be evaluated based on a midterm exam, final exam, and practice problems from the course textbook.

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237 views

MGMT3048 Course Outline SemII 2012

This document outlines the course details for Financial Management II at the University of the West Indies, Mona. The course covers advanced topics in financial management including capital budgeting, capital structure, dividend policy, working capital management, international business finance, and corporate risk management. It is taught over 13 weeks with class times on Mondays, Tuesdays, and Wednesdays. Students will be evaluated based on a midterm exam, final exam, and practice problems from the course textbook.

Uploaded by

Justine Powell
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Department of Management Studies, UWI, Mona Course Outline

Financial Management II - MGMT3048 (MS38H) (Semester 2: 2011/12)

Instructor& Email Address: Class Times:

Noel Reynolds [email protected] Tuesdays: 12noon-2pm (SR10) & Wednesdays: 8 9am (SR16) or Mondays: 7-9pm(SR10) & Wednesdays: 8 9pm (SR16) Room 37 (DOMS) Tel: 977-3775/3808/6960, ext. 282 Mondays: 6:00pm 7:00pm; Tuesdays: 9:00am 11:00am; Wednesdays: 11:00am 12:00noon & 6:30pm 8:00pm Financial Management Principles and Applications, (11th Edition - International), Titman, Keown & Martin, Prentice Hall (Pearson Education Inc.), 2011

Office: Office Hours: Text:

Introduction Finance is an exciting, challenging, and ever-changing discipline. Financial Management II is an advanced managerial finance course that ties together theory and applications of financial management; covering the essential aspects of financial decisions. Financial decisions are primarily concerned with providing solutions to the following problems: (1) what assets should the enterprise acquire? (this is the capital budgeting decision); (2) how should these assets be financed? (this is the capital structure decision); and (3) how should short-term operating cash flows be managed? (this is the working capital decision). This course focuses predominantly on learning the tools and techniques needed to analyze and evaluate financial information. This type of analysis enables the financial manager to identify and solve management problems related to the financial operations of business corporations. It builds on the basic principles covered in the first course in Financial Management.

MGMT3048 - DOMS,UWI, Mona

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Department of Management Studies, UWI, Mona


Learning Objectives Upon completing this course, students should be able to: 1. State and discuss the classic theorems of financial management 2. Explain the ramifications of the theorems for corporate decision making. 3. Analyze and evaluate alternative decision problems that require the applications of the basic tools of finance. 4. Understand the big picture of corporate finance and how things fit together. 5. Arrive at alternative approaches for addressing whether and how the financial structure of a firm matters. Pedagogical Approach Lecture presentations will generally consist of notes (presentation, slides, and blackboard) and in-class discussions and problem solving. Problems and selected solutions will also be given to students. Suggested practice problems (quantitative) from the end of chapter questions in the text are identified in the following detailed course content. In addition, students are expected to attempt the review questions (theoretical) at the end of the relevant text chapters. (Students should reacquaint themselves with the material covered in Financial Management I if they are to properly grasp the concepts and techniques presented here). The teaching/learning process will be interactive to a large extent, thus students should make an effort to read/scan the topic to be covered before class. Efforts will be made to give students a summary of most of the material at least one day before class. This will be done electronically, or through the copy room (in this case, students will have to purchase the material). Though the objective of this course is not one of passfail; be advised that if you fail to prepare, be prepared to fail! All course material (course outline, class notes, tutorial sheets, and tutorial sheet solutions) may be accessed on the Universitys Virtual Learning Environment website (OurVLE): http://ourvle.mona.uwi.edu Additional materials are also available at the textbooks companion website: http://wps.prenhall.com/bp_keown_finmgmt_10 Table 1: Grading Scheme Category Mid-term exam Final exam Topics Examined* A, B & C All Topics Percentage (%) 40 60 Format Multiple Choice (MCQ) MCQ & Essay/Problem

* See Table 2 (Course Content and Schedule) for list of topics.

MGMT3048 - DOMS,UWI, Mona

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Department of Management Studies, UWI, Mona


Table 2 : Course Content & Schedule TOPIC BY WEEK Weeks 1-3, beginning January 23, 2012 Preliminaries A. Some Complications in Capital Budgeting Analysis - Choosing among Mutually Exclusive Projects with unequal lives. - Measuring and adjusting for Risk in Capital Budgeting decisions. - Business Risk and Operating Leverage - Real Options in Capital Budgeting Week 4-5, beginning February 13, 2012 B. Capital Structure and Leverage Financial Risk and FinancialLeverage Capital Structure Theory Determining the Optimal Capital Structure EBIT-EPS Indifference Analysis Chpt. 15
All questions from Study Questions (15-1 to 15-22) & Study Problems (15-11 to 15-14)

READINGS*

PRACTICE PROBLEMS

Chpt. 11: pgs. 341-344 Chpt. 13

Study Problems (11-4 to 11-5) All questions from Study Questions (13-1 to 13-7) & Study Problems (13-4 to 13-7; 1312 to 13-16)

Weeks6-7, beginning February 27, 2012 C. Dividend Policy - Dividend Policy Theories - Other Dividend Policy Issues and Dividend Payment Procedures - Stock Dividends, Stock Splits, and Stock Repurchases Weeks 8-9, beginning March 12, 2012 D. Working Capital Management - Working Capital Management &Policy - Short-term Financing - Management of Cash and Marketable Securities - Accounts Receivables and Inventory Management Chpt. 18
All questions from Study Questions (18-1 to 18-13) & Study Problems (18-8 to 18-11)

Chpt. 16

All questions from Study Questions (16-1 to 16-14) & Study Problems (16-2 to 16-8)

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Department of Management Studies, UWI, Mona


TOPIC BY WEEK Weeks 10-11, beginning March 26, 2012 E. International Business Finance - Foreign Exchange Markets & Transactions - Interest Rate & Purchasing-Power Parity - Capital Budgeting for Foreign Direct Investment Weeks 12-13, beginning April 9, 2012 F. Corporate Risk Management - The Risk Management Process - Instruments used in Managing Corporate Risk Exposure Insurance Contracts & Derivatives (Forwards, Futures, Options & Swaps) Chpt. 20
All questions from Study Questions (20-1 to 20-13) & Study Problems (20-2 to 20-3; 20-9 to 20-12)

READINGS*

PRACTICE PROBLEMS

Chpt. 19

All questions from Study Questions (19-1 to 19-12) & Study Problems (19-2 to 19-4; 1915 to 19-20)

* All references are from the prescribed text, unless otherwise stated.

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