AMERICAN INTERNATIONAL UNIVERSITY – BANGLADESH

Faculty of Business Administration

BBA Program
Department of Finance

I - Course Code and Title : BBA 3116; Financial Management

II – Credit : 3 Credit Hours
III - Course Description: This class would provide the students with an understanding of the tools that have
been developed to value companies and investment projects. The class would also provide the students with the
tools and skills needed to make optimal investment and portfolio decisions, and to understand the process of
corporate decision making. We will also discuss how firms should raise funds for their real investments.
1. Course Outcomes: At the end of the Course, the Student will be able to:

Describe major decision areas of Financial Management

CLO1
Explain the financial goal of the firm, value creation, agency relationship, agency problem and
agency cost
CLO2
Understand the concept of cash flow patterns, interest rates and their relationships in
determining value of different investment opportunities, savings schemes and loan products
CLO3
Demonstrate the ability to evaluate different investment opportunities solely based on after
considering the effect of time value of money.
CLO4
Realize that profitable investment opportunities are the sources of value addition for a firm.
CLO5
2. A Mapping of Course Outcomes to Program Outcomes:
PLO1 PLO2 PLO3 PLO4 PLO5 PLO6 PLO7 PLO PLO9 PLO 10
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CLO1      
CLO2      
CLO3       
CLO 4       

CLO 5         

2. B
CO/CLOs Level of Domain PO Assessment Tools
Assessed
C P A S AO
CO1  CT 1 Quiz, Mid and Final exam etc.
CO2  CT 5 Case study, Term paper, Assignment etc.
CO3  CT 3 Presentation, Group discussion etc.

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 CO4  TS 6 Survey, Term paper, Study tour
CO5  CT 6 Poster presentation etc.
C: Cognitive; P: Psychomotor; A: Affective; S: Soft skills (CT: Critical Thinking, TS: Teamwork,
Leadership etc.); Any other: AO
IV – Objectives: At the end of the course students will start to interpret the complex world of financial
management, including its nature and scope and the different fields involved. The major topics covered in class
would include the objectives of firms, the functions of a financial manager, performance evaluation of firms and
their managers, valuation of financial instruments, capital budgeting, and time value of money.

Cognitive Component
1. Describe major decision areas of “Financial Management”
2. Explain the financial goal of the firm, value creation, agency relationship, agency problem and agency cost
3. Understand the concept of cash flow patterns, interest rates and their relationships in determining value of
(or, payment of) different investment opportunities, savings schemes and / or loan products
4. Solve problems related to both annual and other compounding frequencies.
5. Differentiate between nominal and effective rates.

Psychomotor Skills
1. Classify different financial tasks of an organization into different relevant categories
2. Discuss the relationship among managerial decisions, cash flow, risk and share price
3. Perform basic TVM calculations including determination of future value and present value of different cash
flows, number of periods, interest rate, EMI of a loan and so on.
4. Demonstrate the ability to evaluate different investment opportunities solely based on after considering the
effect of time value of money.
5. Demonstrate the ability of picking up the best among the available projects solely based on their economic
effectiveness.

Affective Component
1. Accept and appreciate the need of understanding and adjusting value of cash flows before taking a
financial decision
2. Appreciate the importance of adjusting risk in investment decision-making process.
3. Realize that profitable long-term investment opportunities are the sources of value addition for a firm.

V – Topics to be covered

Time Suggestive Teaching Intended learning

Topic Specific objective(s) outcomes
Frame Activities Strategy(s)

Intellectual Review and recall

1. Overview of the
Chapter 1 exchange of the topics
course outline and
An information & Use of power
assessment strategy
Overview One to one point and white
2. Concept of “Financial Lecture Tabulate decision
of communicatio board to deliver
Management 1,2 phases of financial
Financial n with the lecture.
3. Main Functions of management
Managem students.
Financial
ent Power point Illustrate the process
Management
presentation view of wealth
4. The Goal of the Firm:

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 wealth maximization,
meaning of wealth in maximization
finance topic/lesson)

Problem Review and recall

solving of time Power Pt the topics
1. Present Value & Future
value from the Presentation &
Value (single flow)
Chapter 3 Lecture Textbook white Board Understand
2. Present Value & Future
Time 3,4,5,6, And case study illustration
Value (annuity flow) competitive strategy
Value of 7,8 solving on Excel sheet use
3. Amortization of loan and how to achieve
Money Time Value of and case study
expense strategic fit.
Money solution

Chapter 4 Review and recall

The the topics
Learning about
Valuation
1. Key characteristics of different types
of Long- Power Pt
Bonds of bonds and Understand the
Term Lecture Presentation and
2. Valuation of Coupon their use. drivers of debt
Securities 9,10,11 white Board
Bond, Zero Coupon Solving related
(Bond problem solving instruments and their
Bond & Console math problem affects
Valuation
)

1. Explain the different Use of Power

Problem
types of financial Point and white Review and recall
solving of ratio
statements board to deliver the topics
from the slide
2. Liquidity ratio the lecture.
And case study
Chapter 6 3. Activity ratio A small case
Lecture solving on Understand how to
Financial 4. Leverage ratio analysis Using
12,13,1 Financial analyze financial
Statement 5. Profitability ratio Excel to show
4,15 Statement statement
Analysis 6. Cross Sector & Industry how trend
Analysis
analysis analysis charts
(Trend
7. Trend analysis are made from
Analysis)
excel sheet data

Open
discussion and
Review of Mid Term Lecture
------ Question White board use
syllabus 16,17
Answer
session
Mid Term
Chapter Lectur Learning the Power Pt Review and recall
15 1. Cost of Debt (before and e importance of Presentation and the topics
The Cost after Tax) 18,19,2 using debt and white board
of Capital 2. Cost of Equity 0 equity finance illustration Learn cost of capital
(Common Stock and Problem

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 solving from valuation model and
Preferred stock) slide and mini optimize the profit
3. WACC case on
level.
WAAC
Review and recall
Learning to the topics
Chapter 1. Introduction Lectur Power Pt
use different
13 2. Capital Budgeting Tools e Presentation and
techniques to Learn to solve
Capital and Techniques 21,22,2 white board
evaluate capital budgeting
Budgeting Investment Decision 3,24,25 illustration
projects techniques problems
Making

Review and recall

1. Define risk and return Understanding
2. Using Probability the concept of the topics
distribution to measure different risks Power Pt
Chapter 5 Lecture
risk and how risk Presentation and Understand risk
Risk and 26,27,2 return planning &
3. Attitudes Towards risk can be white board
Return 8
Estimating risk for estimated for problem solving solve relevant
single asset and two assets and critical problems
Asset Portfolio portfolios
Chapter 4
The Interactive Review and recall
Valuation 1. Defining different types discussion to the topics
of Long- of stocks and its understand the Power Pt
Lecture
Term characteristics basics of stock Presentation and
29,30,3 Learn about different
Securities 2. Valuation concept market white board
1,32
(Stock 4. Application of valuation functions and problem solving stock valuations
Valuation models solve related techniques
) math problem

Open
discussion and
Lecture
---- Final Exam Review Question Whiteboard Use
33,34
Answer
session

Final Exam

VI - Course Requirements
 Grading Policy will be as per the university grading structure.

 You are expected to attend and participate in all class meetings. Irregular attendance will not be permitted.
Class attendance below 80% will lead to an automatic F grade. It is entirely the responsibility of the

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 students to collect the materials that has been missed due to failure of attending any classes for any reason
whatsoever. Let it be reminded that lectures will not be repeated.
 Withdrawal from class is not automatic. The student who desires to withdraw is responsible for processing
the withdrawal.
 There will be no make‐ups for any missed exams or assignments.
 I reserve the right to adjust final grades due to excessive disruptive and disrespectful class demeanour (e.g.
chatting with classmates, interrupting your classmates or instructor, leaving class early, using cell
phones/laptops, etc.).
 Assigned chapters and reading should be read prior to their discussion/review in class.
 Participation in class discussion is required. Participation is defined (for this course) as constructive
contribution to the development of a topic as it is discussed in class. Quality of participation is a significant
factor to be included in the assessment of final grade.

VII – Evaluation

Mid Term Session Final Session

Assignment 1 40% Assignment 2 40%
Mid-Term Examination 60% Final-Term Examination 60%
Total 100 Total 100
% %
Weight Converted into 40% Weight Converted into 60%

VIII - Required text:

Fundamentals of Financial Management: James C. Van Horne and Jr. John

M Wachowicz, 13th Edition, Prentice-Hall
Reference texts:
1. Essentials of Managerial Finance: Scott Besley & Eugene F. Brigham, fourteenth edition, South‐Western
College Pub.
2. Principles of Managerial Finance: Lawrence J. Gitman, Pearson Education, 12th edition
3. Financial Management Text, Problems and Cases
4. Fundamentals of Financial Management: Eugene F. Brigham & Joel F. Houston. Concise edition, the
Drayden Press.