Army Institute of Business Administration (Army IBA)

Savar Cantonment, Savar, Dhaka

Course Outline

Semester January-April 2025 Batch MBA

Course Title Financial Management Course Code FIN 6301
Department Business Administration No. of Credits 03
Course Instructor Tayeba Akter
Lecturer
Army Institute of Business Administration
Email Address [email protected]
Class Hours 3 hour 00 minutes

Learning Objectives

After a successful completion of this course, students will be able to:

1. Know about key concepts of finance
2. Clarify the roles and responsibilities of the financial manager
3. Explain different types of financial markets and institutions
4. Accomplish financial statement analysis for interpretation, evaluation, and forecasting of financial
performance
5. Identify the concept of time preference of money
6. Diagnose the factors affecting interest rates
7. Assess the value of basic financial instruments i.e. bond and stock
8. Compute risk for single asset and portfolio
9. Calculate the cost of capital for different types of capitals
10. Recognize how companies select the capital expenditures projects.
Appropriate campus behavior
Respect of others and modesty are the outcomes of every education. Students should be careful in maintaining
appropriate behavior which includes proper dress, hanging the ID card from neck, practicing courtesy and good
mannerism. Our campus is no smoking zone, male jewelry of any kind, open/uncovered body parts, undone shirt
buttons and any kind of illegal activities are strictly prohibited.

Code of Conduct for the Students

1. Students are expected to enter into the classroom within stipulated time.
2. Students must bring the required textbook, calculator and other logistics in the class.
3. Students should maintain the standard class environment. In this regard, activities like side talks, use of
cellular phones, frequent in and out from the classroom are strictly prohibited.
4. In case of assignment, meeting deadlines is extremely important- if you miss the date, it may not be
graded or less graded.
5. In case of any emergency if unable to attend to class/quiz/exams, please let your instructor know in
writing well ahead of the deadline and in case of serious illness you should inform the instructor as early
as possible.
6. Students found in any kind of unfair means in the exams will automatically be dropped from the
course.
7. Students should follow the prescribed dress code strictly.

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Policy for missed classes, quizzes and Mid-Term Examination

Students are requested to attend all classes and to read assigned textual material prior to attend the class. A
student missing the significant number of classes without a valid reason may be dropped out from the course.
No makeup would be allowed for missed quizzes. Students are not expected to become absent in Mid-Term
Examination. Students can attend the makeup Mid-Term examination only if authority approves the matter. The
makeup should be arranged within one week of the particular examination date.

Office hours, appointment

I encourage you to come to my office hours to ask questions, clarify assignments, or obtain additional help as
needed. If you cannot attend posted office hours, please fix up an appointment or contact through e-mail.

Promotion Policy
It is required to get at least CGPA 2.5 in order to get graduation certificate from BBA program. For each
semester CGPA requirements for getting promotion to the next semester are as follows:

Semester CGPA Requirements

First-Second Semester 2.00
Second-Third Semester 2.25
Third-Fourth Semester 2.50
Fourth-Onwards Semester 2.50

Attendance Policy
Students will get 0.5 mark for attending each classes and these marks are applicable only for the first 18 classes
of their respective semester. Thus they will be able to get (18*0.5)= 9 marks for attending the first 18 classes of
the semester. Rest 1 mark will be given based on their attendance on the national events.

Methods of Assessment

Performance Evaluation Techniques Marks Weight Comment

Mid-Term Examination of 75 minutes duration 40 20%
Comprehensive Semester Final Examination 100 50%
Quizzes weekly tests (Minimum 5 numbers) 10*6=60 10% Grading will be as per
Term paper and/or project work including presentation 05 05% as institute’s policy of
Assignments, case studies, class participation 05 05% Grading System.
Class attendance and participation 10 10%
Total 100 100%

Grading System (As per Institute’s policy)

Score Grade Score Grade

80 - 100 A+ 55 – 59 B-
75 - 79 A 50 – 54 C+
70 – 74 A- 45 – 49 C
65 – 69 B+ 40 – 44 D
60 – 64 B Below 40 F

Course Materials

Text Book : Fundamentals of Financial Management, Eugene F. Brigham and Joel F. Houston,
10th Edition, South-Western
Principles of Managerial Finance, Lawrence J. Gitman and Chad J. Zutter, 14 th
Edition, Pearson

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Reference Book : Fundamentals of Financial Management, James C. Van Horne and John M
Wachowicz, 12th Edition, Pearson
Financial Management, I M Pandey, 10th Edition, Vikas Publishing House

❖ Extra supplements and notes will be delivered by the course instructor.

Course Contents and Course Plan

Date Class Chapter Topics Discussion Points Reference

Course General 1. Course outline

Introduction instructions of the 2. Evaluation criteria
Lecture
1. course 3. Dos and don’ts of the course
Slide
4. Definition and concepts of
finance
Financial Financial 1 .Financial Analysis
As per
Statements Analysis 2. Need of Financial Analysis
given
& 3. User of Financial Analysis
slides &
2. Analysis of 4. Techniques of Financial
Brigham
Financial Analysis
Chapter 2
Statements 5. Ratio Analysis
&3
Analysis of Ratio Analysis 1. Analysis 5 broad As per
Financial categories of ratio given
3. Statements DuPont Analysis slides &
Brigham
Chapter 3
Analysis of Financial 1. Limitation of ratio
Financial Analysis analysis As per
Statements 2. Trend analysis given
3. Common- size analysis slides &
4. 4. Break-Even analysis Brigham
5. Fund-Flow analysis Chapter 3
Mathematical problem solve
Class Test- 01
Risk and Rates Concepts of Risk 1. Definitions of risk and return As per
of Return and return, Single 2. Investment return and risk given
Asset Risk 3. Risk of Single asset slides &
5 Brigham
Chapter 5
Class Test -02
Risk and Rates Risk of a 1. Risk of Single asset
of Return portfolio 2. Portfolio risk and return
As per
3. Measuring Coefficient of
given
Correlation
6 slides &
4. Capital Asset Pricing Model
Brigham
5. Beta Coefficient
Chapter 5
6. The relationship between risk
and rates of return
Risk and Rates Mathematical 1. Valuation of Securities
of Return Problems of Risk 2. Impact of inflation As per
and Return 3. Risk aversion given
7 4. Solving Mathematical slides &
Problems Brigham
5. Assigning Problems for Chapter 5
Assignment

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 Time Value of Concepts of time 1. Reason for Time value of
As per
Money preference Money
given
2. Opportunity cost
8 slides &
3. Cash flows and Interest
Brigham
4. Values of Cash flows(PV,FV)
Chapter 6
5. Annuity & Perpetuity
Time Value of Concepts of time 1. APR vs EFR As per
Money preference 2. Amortization given
9 3. Mathematical Problem Solve slides &
4. Assigning Problems for Brigham
Assignment Chapter 6
Bonds and Concepts of Bond 1. Concepts of Bond As per
Their 2. Issuers of bond given
Valuation 3. Features of Bond slides &
10 4. Types of bond Brigham
Chapter 7
Class Test -03
Bonds and Bond Valuation 1. Methods of bond valuation As per
Their 2. Yield, Types of yield given
11 Valuation 3. Mathematical problem Solve slides &
Brigham
Chapter 7
Stocks and Concepts of 1. Concepts of Stock
As per
Their Stock & 2. Stock features
given
Valuation Valuation 3. Types of stock market
12 slides &
transactions
Brigham
4. Methods of share valuation
Chapter 8
5. Dividend Valuation Model
Stocks and Stock Valuation 1. Free Cash flow Model As per
Their 2. Efficient Market Hypothesis given
13. Valuation 3. Solving /mathematical slides &
Problem Brigham
Chapter 8
The Cost of Concept of Cost 1.
Basics of cost of capital
Capital of capital, 2.
Significance of Cost of As per
Determining Cost Capital given
14. of capital 3. Components of capital slides &
4. Cost of long-term debt Brigham
5. Cost of preferred stock Chapter 9
6. Cost of common equity
15. Review Class of Mid Term Syllabus
Cost of Capital Determining Cost 1. WACC As per
of capital 2. Reason of calculating WACC given
3. Factors that affect the slides &
16. composite cost of capital Brigham
Chapter 9
Class Test 04
Cost of Capital Mathematical 1. Estimating project risk
As per
Problems of Cost 2. Adjusted WACC
given
of Capital 3. Solving Mathematical
17. slides &
Problems
Brigham
4. Assigning Problems for
Chapter 9
Assignment
The Basics of Concepts of 1. Capital Budgeting and As per
Capital Capital Importance given
18. Budgeting Budgeting 2. Types of Capital Expenditure slides &
3. Capital Budgeting Process Brigham
4. Administrative Framework Chapter 10

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 The Basics of Capital 1. Capital Budgeting Techniques As per
Capital Budgeting 2. Traditional Approach given
19. Budgeting Techniques 3. Modern Approach slides &
Brigham
Chapter 10
The Basics of Capital 1. Modern Approach As per
Capital Budgeting 2. Capital Rating given
20. Budgeting Techniques 3. Mathematical Problem Solve slides &
4. Assigning Problems for Brigham
Assignment Chapter 10
Capital Capital Structure 1. Concepts of Capital As per
Structure and Structure given
21. Leverage 2. Factors Influences Capital slides &
Structure Decision Brigham
3. Business risk, Financial risk Chapter 13
Class Test 05
Capital Capital Structure 1. Operating leverage, Financial As per
Structure and leverage given
22. Leverage 2. Relationship between WACC slides &
vs VF Brigham
3. MM Proposition (I) Chapter 13
Capital Capital Structure 1. MM Proposition (II) As per
Structure and 2. Optimal Capital Structure given
23. Leverage 3. Pecking Order Theory slides &
4. Solving Mathematical Brigham
Problem Chapter 13
Dividend The Basics of 1. Dividend
As per
Policy Payout 2. Types of dividend
given
Policy 3. Sources of dividend
24. slides &
4. Methods of basic calculation
Brigham
5. Types of dividend policy
Chapter 14
6. Dividend process
Dividend The Basics of 1. Influences of dividend policy
Policy Dividend 2. The relationship between As per
Policy payout and retention ratio given
25. 3. The relationship between slides &
personal income tax and Brigham
payout policy Chapter 14
4. Share Repurchase Procedure
Dividend Relevance of 1. Dividend relevance theory As per
Policy Payout 2. Walter Model given
26. Policy 3. Gordon Model slides &
4. Dividend irrelevance theory Brigham
5. Residual Theory of Dividends Chapter 14
Working Concepts of 1. Working Capital Concepts
Capital Working Capital 2. Classification
As per
Management Management 3. Focusing on Current assets
given
management
27 slides & I
4. Focusing on Liquidity
M Pandey
management
Chapter 27
5. Operating and Cash
conversion Cycle
Working Concepts of 1. Gross Operating Cycle As per
Capital Working Capital 2. Determinates of Working given
28. Management Management Capital slides & I
3. Policy for financing current M Pandey
assets Chapter 27

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 29. Review Class
Presentation & Term Paper Discussion
30.

*** Note: The above course outline is tentative. The instructor reserves the right to make any changes if
necessary and it will be announced accordingly.

………………………….
Tayeba Akter
Lecturer
Army Institute of Business Administration
Savar Cantonment, Savar, Dhaka.

Good Luck!

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