Financial Management

SYLLABUS MAN 5121
FINANCIAL MANAGEMENT
3 CREDIT UNITS

COURSE DESCRIPTION

This course discusses the principles, theories, and the analytical framework for the financial management of the company (corporate finance) that can be used by financial managers in taking decisions relating to financial issues. The course also gives students the opportunity to understand the company’s financial management theory and how to apply in real life which will have an impact on the creation of sustainable value.
This course was designed to increase students’ capacity to understand and to apply several techniques and concepts in financial management area. The course concentrates on 3 (three) main financial decisions: Investment decisions, financing decisions, and income distribution decisions. In detail, the design of this course deals with financial decisions taken by a company in a state of uncertainty (uncertainty). These decisions are: (1) The project investment decision what to choose to invest / how to assess a company or an asset; (2) the funding decision-how to earn or raise capital in the financial markets (financial markets);
(3) The capital structure decision-how appropriate capital structure (related to financial decisions); (4) The decision of corporate governance mechanisms should be made to regulate managers and the largest shareholder; (5) The dividend decision (corporate payout) -why and how to return the cash to investors; (6) a diagnostic analysis and capital market-analyzes capital market information for decision-making at the corporate level; (7) merger and acquisition-how companies can use mergers and acquisitions as a tool for growth; and (8) risk management and real options.

LEARNING OBJECTIVES

After completion of this course, students are expected to be able to:

  1. Develop an understanding on the tools used to assess investments in projects and companies (valuation)
  2. Understand the key issues in obtaining or collection companies for capital investment (financing)
  3. Evaluate how investment decisions and funding interact or relate to each other. It emphasizes the understanding of the constraints and challenges in applying the theoretical framework of financial management into a real problem in the business world
  4. Understand financial theory in depth, especially in the corporate finance management,
  5. Solving problems and cases of financial management,
  6. Analyze special topics of financial management,
  7. Analyze the problem, consider alternative solutions, and decided the best solution to the problem or opportunity in the context of the financial

MAIN TEXTBOOK

  • Koh, A., Ang, S.K., Brigham, E.F., and Ehrdhart, M.C. (2014). Financial Management: Theory and Practice, An Asia Edition. Cengage Learning, Singapore. (KABEE)
  • Bruner, F.R., Eades, K.M., and Chill, M.J. (2018). Case Study in Finance: Managing for Corporate Value Creation, 7th Edition. McGraw-Hill International Edition. (BEC)

ADDITIONAL READING MATERIALS

  • Additional materials will be distributed during the sessions.
  • Calculator: Financial Consultant FC-100V atau FC-200V atau Texas Instruments BA II PLUS/Professional

LEARNING METHOD

This method is a particular type of learning methods under the student-centered learning (SCL) paradigm. In this approach, students are active learners to find and construct their own knowledge. The instructor serves only as a facilitator to help students achieve learning objectives and develop interpersonal skills. The class time will be devoted to discuss any concepts, materials, and or issues in the subject.

EVALUATION METHOD

  1. Mid-term Exam (25%)
  2. Final Exam (25%)
  3. Presentation, Discussion, Participation (30%)
  4. Assignment/Quiz (20%)

COURSE SESSIONS

The course Financial Management weighs 3 credit units which is held in 14 sessions of lectures and 2 sessions of exams @ 150 minutes for regular class and 12 sessions of lectures and 2 sessions of exams @ 180 minutes for the executive class.

Session Topic Reading Materials
1 An Overview of FM and the Financial Management and the
Financial		 KABEE (Ch. 1)
2
  • Financial Statement, Cash Flow, and Taxes.
  • Analysis of Financial Statement.
 KABEE (Ch. 2,3)
3
  • Time Value of Money.
  • Bond, Bond Valuation, and Interest Rate.
 KABEE (Ch. 4,5)
4
  • Risk, Return, and the Capital Pricing Model.
  • Stocks, Stock Valuation, and Market.
  • Financial Options and Applications in Corporate Finance.
 KABEE (Ch. 6,7,8)
5  The Cost of Capital KABEE (Ch. 9)
6
  • The Basic of Capital Budgeting: Evaluating Cash Flow
  • Cash Flow Estimation and Risk Analysis.
  • Financial Planning and Forecasting Pro Forma Financial Statement
 KABEE
(Ch. 10,11,12)
7 CorporateValuation,ValueBasedManagement,andCorporate Governance KABEE (Ch. 13)
Mid-Term Exam
 8
  • Distribution to Shareholders: Dividends and Repurchases
  • Capital Structure Decisions
 KABEE (Ch. 14,15)
9 Working Capital Management KABEE (Ch. 16)
10
  • Multinational Financial Management
  • Lease Financing
 KABEE (Ch. 17,18)
 11 Preferred Stock, Warrants, and Convertibles KABEE (Ch. 19)
 12
  • IPO, Investment Banking & Financial Restructuring
  • Mergers, LBOs, Divestitures, and Holding Company
 KABEE (Ch. 20,21)
 13 Bankruptcy, Reorganization & liquidation KABEE (Ch. 22)
14
  • Derivatives and Risk Management
  • Summary of the all chapters
 KABEE (Ch. 23)
Final Exam