COURSE CODE : FIMA 30013

COURSE TITLE : FINANCIAL MANAGEMENT

CREDIT UNITS : 3 UNITS

COURSE PREREQUISITE : NONE

COURSE DESCRIPTION : This is an introductory course in financial

management designed to make students understand
the basic finance concepts. It involves studies on
decision making utilizing financial resources available
to the firm from the perspective of the manager. It
covers the whole range of basic finance concepts;
financial statement analysis; working capital
management and short-term financing; financial asset
valuation; risk, return and cost of capital; capital
budgeting; capital markets and sources of long-term
financing.

COURSE OUTCOMES : At the end of the course, the learner should be able to:

 Use basic financial management concept

 Identify the major sources of short-term and long-
term financing available to the firm
 Apply techniques for estimating the cost of each
component of the cost of capital
 Apply time value, risk, and return concepts.
 Identify relevant cash flows for capital budgeting
projects and apply various methods to analyze
projects
 Analyze financial statements using standard
financial ratios of liquidity, activity, debt,
profitability, and market value
 Explain the role of short-term financial
management, and the key strategies and
techniques used to manage cash, marketable
securities, accounts receivable and inventory.
COURSE CONTENT

Learning
Week Topics Outcomes Resources/References
1 Introduction to the course Demonstrate interest
contents, activities, and and appreciation of
Course Syllabus
requirements the importance of
knowing the course

2 Fundamentals of
Introduction to Financial Describe Financial Corporate Finance
Management Management in Ross, S.A., et.al.
terms of the three 2nd edition
 Overview of financial major decision areas 2016
management that confront the
financial manager Principles of Managerial
 The firm and its Finance
financial manager Identify the goal of Gitman, L.J.
the firm and 13th ed. 2013
 Organizational extrapolate why
structure of the finance shareholders’ wealth Fundamentals of
department maximization is Financial Management
preferred Brigham, Eugene
6th ed. 2014
Explain the basic
responsibilities of
financial managers

3 Financial Markets, Institutions Discuss the term

and Interest Rates structure of interest Basic Finance: An
rates and its Introduction to Financial
relationship to yield Institutions, Investments
curve and Management
Mayo, Herber
10th ed. 2015

Principles of Managerial
Finance
Gitman, L.J.
13th ed. 2013

Fundamentals of
Financial Management
 Brigham, Eugene
6th ed. 2014
4-5 Financial Reporting and Explain the purpose Analysis for Financial
Analysis of basic financial Management 11th ed.
statements and their Higgins, R.
contents 2016

Define, calculate, Principles of Managerial

and categorize the Finance
major financial ratios Gitman, L.J.
and comprehend 13th ed. 2013
and extrapolate what
they can tell us Fundamentals of
about the firm. Financial Management
Brigham, Eugene
Identify the 6th ed. 2014
limitations of
financial ratio Financial Statement
analysis Analysis
Gibson, Charles
Solve case problems 2013

6 Basic Financial Analysis Analysis for Financial

Use trend analysis, Management 11th ed.
common-size Higgins, R.
analysis, and index 2016
analysis to gain
additional insights Principles of Managerial
into a firm’s Finance
performance. Gitman, L.J.
13th ed. 2013
Solve case problems
Fundamentals of
Financial Management
Brigham, Eugene
6th ed. 2014

Financial Statement
Analysis
Gibson, Charles
2013

7-8 Risk, Return and Valuation Fundamentals of

Define risk and Corporate Finance
 Types of risks return and their Ross, S.A., et.al.
relationship 2nd edition
 Capital Asset Pricing 2016
Differentiate types of
 Model risks and how to
mitigate them Principles of Managerial
 Valuation of financial Finance
assets – stocks and Measure/Calculate Gitman, L.J.
bonds risk and return 13th ed. 2013

Calculate required Fundamentals of

rate of return using Financial Management
the capital-asset Brigham, Eugene
pricing model 6th ed. 2014
(CAPM).

Value bonds,
preferred stocks,
and common stock

Calculate the rates

of return (or yields)
of different types of
long-term securities

9 MIDTERM EXAMINATION
10-12 Planning the Financial Discuss capital Fundamentals of
Structure structure Corporate Finance
Ross, S.A., et.al.
Discuss operating 2nd edition
 Alternative Methods of and financial 2016
Financing leverage and identify
causes of both
 Debt versus Equity Principles of Managerial
Examine the Finance
 Operating and appropriate amount Gitman, L.J.
Financial Leverage of financial leverage 13th ed. 2013
for a firm
Fundamentals of
Calculate a firm’s Financial Management
degree of operating, Brigham, Eugene
financial and total 6th ed. 2014
leverage

Solve case problems

13-14 Managing and Financing State the issues in

Current Assets working capital Fundamentals of
management and Corporate Finance
 Cash the trade-offs Ross, S.A., et.al.
involved 2nd edition
 Accounts Receivables 2016
Calculate the
optimal level of
 current assets
Principles of Managerial
 Inventory Discuss the Finance
combination of Gitman, L.J.
current asset 13th ed. 2013
decision with the
liability structure Fundamentals of
Financial Management
Solve case problems Brigham, Eugene
6th ed. 2014

15-17
State the issues in
working capital
Management of Short-term, Fundamentals of
management and
Intermediate and Long-term Corporate Finance
the trade-offs
Funds Ross, S.A., et.al.
involved
2nd edition
 Internal sources 2016
Calculate the
optimal level of
Principles of Managerial
 External sources current assets
Finance
Gitman, L.J.
 Money market Discuss the
13th ed. 2013
combination of
 Capital market current asset
Fundamentals of
decision with the
Financial Management
liability structure
Brigham, Eugene
6th ed. 2014
Solve case problems

Discuss the sources

and types of
spontaneous
financing

Discuss the various

types of negotiated
short-term financing

Identify the factors

affecting the cost of
short-term
borrowings

Differentiate the
financial markets
 Calculate the
effective annual
interest rate

Solve case problems

18 FINAL EXAMINATION

GRADING SYSTEM

Class Standing 70%

• Quizzes
• Case Study
• Projects
• Summative Test
• Portfolio

Midterm / Final Examinations 30%

100%

Midterm Grade + Final Term Grade = FINAL GRADE

2

REFERENCES
Fundamentals of Corporate Finance, Ross, S.A., et.al.2nd edition, 2016

Principles of Managerial Finance, Gitman, L.J.,13th ed. 2013

Fundamentals of Financial Management, Brigham, Eugene 6th ed. 2014

Basic Finance: An Introduction to Financial Institutions, Investments and Management,

Mayo, Herber 10th ed. 2015

Principles of Managerial Finance, Gitman, L.J. 13th ed. 2013

Analysis for Financial Management 11th ed., Higgins, R. 2016

Financial Statement Analysis, Gibson, Charles, 2013