Financial Management Course Outline
Financial Management Course Outline
Finance deals with money; it is the art and science of managing money. Financial manager
collets money from cheapest possible sources makes it fund and invests this fund in such a way
that maximizes the wealth of shareholders. The main objective of the course is to make an
effective and efficient financial manager who will exactly able to do what professional financial
managers do in their professional field.
Understand about Finance, its major areas, opportunities, function, and primary activities
of financial manager
Understand financial institutions and markets, and role they play in managerial finance
Understand different financial ratios to analyze a firm and hence facilitate you to make
investment decisions in that company
Understand the role of time value of money in Finance, the use of computational tools
Tradeoff between risk and return enters into numerous professional and personal
financial decisions
Doshort - term and long - term financial decisions and also facilitate one’s to make long -
term investment decisions
After completing this course, students should be able to interpret and communicate financial
tools and techniques and apply this knowledge in decision making process not only in personal
investment but also in professional life.
2.0 Course Content
This subject will cover five parts. Each part has the seven following chapters; Details topic
names of chapters are listed here.
Finance and Business: Introduction about Finance and its major areas, opportunities, and
importance to study, Legal forms of business.
Goal of the Firm: Maximize profit or shareholder wealth, the agency issue.
Financial Institutions and Markets: The money market, the capital market, Roles, functions and
interrelationship of the monetary authorities of Bangladesh and commercial banks, Problems of
commercial banking with respect to lending, investment
The Stockholders’ Report: The letter to stockholders’, the four key financial statement, A
complete ratio analysis - Liquidity ratios, Activity ratios, Debt ratios, Profitability ratios, Market
ratios.
The Role of time Value in Finance: Future value and present value, Basic pattern of cash flow.
Single Amounts: Future value of a single amount, present value of a single amount, comparing
present value and future value
Mixed Streams: Future value of a mixed stream and present value of a mixed stream
Special Applications of Time Value: Determining deposits needed to accumulate a future sum,
Loan amortization
Risk and Return Fundamentals: Concept of Risk and Return, Risk preference
Risk of a Single Asset: Risk assessment and measurement
Risk of a Portfolio: Portfolio return and standard deviation, correlation, diversification
The Capital Asset Pricing Model (CAPM): Types of Risk, CAPM model
Capital Budgeting Decision Process: Motives for capital expenditure, steps in the process, and
basic terminology
Overview of Capital Budgeting Techniques: Nature of cash flows, Payback period, Net present
value, Comparing NPV and IRR techniques
Overview of the Cost of Capital, Cost of long - term debt, Cost of preferred stock, Cost of
common stock, WACC, Marginal cost and investment decisions
Net working capital fundamentals: Short-term financial management, net working capital
management, the tradeoff between profitability and risk
*Final Exam and Mid-Term Exam will be held centrally. Office of the Controller of
Examinations will fix the date. You are advised to keep yourself up to date by following
exam notice regarding with your exam date.
** At least 3 quizzes/class test will be taken. You are advised to prepare yourself to appear for
surprised class test.
*** At the end of the course you are required to submit a term paper and appear in the
presentation as well.
**** Failing/Missing to appear in the final examination will be considered as F (Fail) grade.
Session 1, 2, 3 : Chapter - 1
Session 4, 5 :Chapter - 2
Session 7 : Chapter - 2
Session 8, 9, 10 : Chapter - 3
Final Exam
i) Principles of Managerial Finance (13th Edition) by Lawrence J. Gitman and Chad J. Zutter
ii) Fundamentals of Financial Management (12th Edition) by Eugene F. Brigham and Joel F.
Houston
iii) Financial Statement Analysis: A Practitioner's Guide 4th Edition by Martin S. Fridson
and Fernando Alvarez