The Islamia University of

Bahawalpur
Institute of Business, Management and Administrative
Sciences
Baghdad ul Jadeed Campus, Bahawalpur

Course Outline

Course: Financial Management Instructor Dr. Hassan Mujtaba N. Saleem

Course Code Email [email protected]

Credit Hours 03 Contact No. +923008152225

Prerequisites Financial Accounting I & II Whatsapp +923008152225

Program BBA (Hons.) Class 5th Semester

Lecture Days As pe timetable Lecture Time As per timetable

Weekly Lecture Plan

Session
Week Topic Contents

Define finance, the major areas of finance and the career

opportunities available in this field. The legal forms of
The Role and business organization.
Environment of Describe the managerial finance function
1 1&2
Managerial and its relationship to economics and
Finance accounting.
Identify the primary activities of the financial manager
within the firm.
Explain why wealth maximization, rather than profit
maximization, is the firm’s goal and how the agency issue is
related to it.
The Role and
Understand the relationship between financial institutions
Environment of
2 3&4 and markets, and the role and operations of the money and
Managerial
capital markets.
Finance
Discuss the fundamentals of business taxation of ordinary
income and capital gains, and explain the treatment of tax
losses.
Review the contents of the stockholders’ report and the
procedures for consolidating international financial
Financial statements.
3 5&6 Statements and Understand who uses financial ratios, and
Analysis how.
Use ratios to analyze a firm’s liquidity and
activity.
 Use ratios to analyze a firm’s profitability and its market
Financial
value.
4 7&8 Statements and
Use a summary of financial ratios and the DuPont system of
Analysis
analysis to perform a complete ratio analysis.
Discuss the role of time value in finance, the use of
computational tools, and the basic patterns of cash flow.
Understand the concepts of future and present value, their
Time Value of calculation for single amounts, and the relationship of
5 9 & 10
Money present value to future value.
Find the future value and the present value of both an
ordinary annuity and an annuity due, and find the present
value of a perpetuity.
Calculate both the future value and the present value of a
mixed stream of cash flows.
Time Value of
6 11 & 12 Understand the effect that compounding interest more
Money
frequently than annually has on future value and on the
effective annual rate of interest.
Describe the procedures involved in (1) determining
Time Value of deposits to accumulate a future sum, (2) loan amortization,
7 13 & 14
Money (3) finding interest or growth rates, and (4) finding an
unknown number of periods.
Understand the meaning and fundamentals of risk, return,
and risk preferences.
Describe procedures for assessing and measuring the risk of
8 15 & 16 Risk and Return a single asset.
Discuss the measurement of return and standard deviation
for a portfolio and the various types of correlation that can
exist between series of numbers.
Understand the risk and return characteristics of a portfolio
in terms of correlation and diversification,
and the impact of international assets on a portfolio.
9 17 & 18 Risk and Return
Review the two types of risk and the derivation and role of
beta in measuring the relevant risk of both an individual
security and a portfolio.
Describe interest rate fundamentals, the term structure of
Interest Rates interest rates, and risk premiums.
10 19 & 20 and Bond Review the legal aspects of bond financing and bond cost.
Valuation Discuss the general features, quotations, ratings, popular
types, and international issues of corporate bonds.
Understand the key inputs and basic model used in the
valuation process.Apply the basic valuation model to bonds
Interest Rates and describe the impact of required return and time to
11 21 & 22 and Bond maturity on bond values.
Valuation Explain yield to maturity (YTM), its calculation,
and the procedure used to value bonds that pay interest
semiannually.
12 23 & 24 Stock Valuation Differentiate between debt and equity capital.
Discuss the rights, characteristics, and features of both
common and preferred stock.
Describe the process of issuing common stock, including in
 your discussion venture capital, going public, the
investment banker’s role, and stock
quotations.
Understand the concept of market efficiency and basic
common stock valuation under each of three cases: zero
growth, constant growth, and variable growth
Discuss the free cash flow valuation model and the use of
book value, liquidation value, and price/earnings (P/E)
multiples to estimate common
13 25 & 26 Stock Valuation
stock values.
Explain the relationships among financial decisions, return,
risk, and the firm’s value.
Understand the key motives for capital expenditure and the
steps in the capital budgeting process.
Define basic capital budgeting terminology.
Capital
Discuss the major components of relevant
14 27 & 28 Budgeting
cash flows, expansion versus replacement cash flows, sunk
and Cash Flows
costs and opportunity costs, and international capital
budgeting and long-term
investments.
Calculate the initial investment associated with a proposed
Capital capital expenditure.
15 29 & 30 Budgeting Determine relevant operating cash inflows using the income
and Cash Flows statement format.
Find the terminal cash flow.

Cases on Capital
16 31 & 32 Renovation Case, Replacement Case, Extension Case
Budgeting

Teaching Methodology and Assessment

The instructor will share a(n) (online) quiz assignment to assess the understanding of the topic from
the given learning objectives. Students are expected to solve quiz assignments based on their
understanding of lectures and (videos).

The instructor will discuss the students' responses to questions included in the quiz and assignment
in (online) class and will answer the questions on the assigned topic (online through Zoom and
WhatsApp) class. Furthermore, the mid and final terms are taken to assess the students' specific
subject knowledge that helps them to make a better financial decision.

Note: Assessment will be done in line with the University Policy during the Covid-19 Pandemic.