A151 Bwff2033 Syllabus - Student

SCHOOL OF ECONOMICS, FINANCE & BANKING
UUM COLLEGE OF BUSINESS

SEMESTER A151
No.
Information on Course
1. Course Name :
FINANCIAL MANAGEMENT
2. Course Code : BWFF2033

3. Name(s) of Academic Staff: DR. ADILAH AZHARI
DR. HAMDAN AMER ALI AL-JAIFI
DR. HANITA KADIR SHAHAR
KHARUL AZHAR RAMLI
MAHFUZAH @ MASWATI SALIM
DR. MD MAHMUDUL ALAM
DR. MD MOHAN UDDIN
DR. MD SHAHIN MIA
RUSMAWATI ISMAIL
DR. SABARIAH NORDIN
SHAHRIZA OSMAN
DR. SULAIMAN ABDULLAH
4. Rationale for the inclusion of the course in the programme:
This is a core courses offered for B. Fin students.
5. Semester/Year Offered:
2/1
6. Credit Value: 3
7. Pre-requisite (if any):
BKAF 1023 Introduction to Financial Accounting (for B.Fin, B.Bank & B.RMI)
BKAL 1023 Introduction to Business Accounting (others)
8. Objective(s) of Course :
Students are expected to
1. understand the goal of the firm and the basic principles in financial
management.
2. use the financial data to perform firm valuation and to forecast and plan
1
firms financing.
3. develop analytical skills in working capital management and short-term
financing for the firm.
4. fully understand the risk and return concept.
5. apply the time value of money concept in the real context of financial
decision making.
9.
Transferable Skills:
Communication, Critical Thinking and Problems Solving, Team Work and
Leadership.
10. Teaching-learning and assessment strategy:

Mixed method between teacher-centred and student-centred.
11. Synopsis:
This introductory course to financial management provides the students with the
theoretical, conceptual and practical aspects of financial management. Specifically,
it focuses on short-term financial management and the financial instruments used
in financial decision-making. Overall, this course covers short-term financing and
current asset management which includes cash, marketable securities, accounts
receivable and inventories. The financial concepts and tools to be discussed in this
course are financial statement analysis, risk and return, and time value of money.
12. Mode of Delivery:
Lectures, Tutorials and Discussions.
13. Assessment Methods and Types:
Coursework:
50%
Final examination
50%
Total
100%
14. Content outline and contact hours per topic:
Topic
1.0
INTRODUCTION TO
FINANCIAL MANAGEMENT
1.1 What is finance?
1.2 Financial manager and
financial
management
1.3 Legal forms of business
organization
1.4 The goal of financial
management
1.5 The agency problems
1.6 Financial markets and
institutions
1.7 Principles underlying the
financial management
2.0
Hours
FINANCIAL STATEMENTS
2.1 The importance of financial
statements
2.2 Understanding financial
statements
2.2.1 Income Statement
2.2.2 Balance Sheet
2.2.3 Statement of Retained
Earnings
2.2.4 Statement of cash flow
2.3 Taxation and depreciation
from financial perspective
2.3.1 Marginal vs. Average
taxation
2.3.2 Accelerated vs.
Straight line method
3.0 ASSESSING FIRMS

FINANCIAL
PERFORMANCE
3.1 Uses of financial statements
3.2 Standardized financial
statements
3.2.1 Common-size analysis

3.2.2 Trend analysis
3.3 Financial ratio analysis
3.3.1 Liquidity ratios
3.3.2 Long term solvency
ratios
3.3.3 Asset
management
ratios
3.3.4 Profitability ratios
3.3.5 Market value ratios
3.4 Du Pont analysis
3.5
Limitations to ratio
analysis
4.0 FINANCIAL FORECASTING
AND
PLANNING
4.1 Financial planning
4.1.1 Growth as a financial
management goal
4.1.2 Dimensions and
accomplishment of
financial planning
4.1.3 Ingredients to financial
planning
4.2 Percent of sales method
4.2.1 The income statement
4.2.2 The balance sheet
4.2.3 External
financing
needed (EFN)
4.3 Sustainable growth rate
5.0 TIME VALUE OF MONEY

5.1 Introduction to time value of
money
5.2 Simple interest
5.3 Compound interest
5.3.1 Single amount
5.3.1.1 Future value
5.3.1.2 Present value
5.3.1.3 Finding period
and
interest rate
5.3.1.4 Effective and
nominal interest
rate
5.4 Annuity
5.4.1 Ordinary annuity
5.4.2 Annuity due
5.4.3 Finding payment, period
and interest rate
5.5 Uneven cash flow
5.6 Perpetuity
5.7 Application of time value of
money: Loan amortization
6.0 RISK AND RETURN

6.1 Basics of risk and return
6.2 Expected returns and variances
6.2.1 Expected return
6.2.2 Calculating the variance
and the standard
deviation
6.2.3 Calculating the
coefficient of variation
6.3 Diversification and portfolio
risk
6.3.1 The principle of
diversification
6.3.2 Diversification and
unsystematic risk
6.3.3 Diversification and
systematic risk
6.4 Systematic risk and beta
6.4.1 The systematic risk
principle
6.4.2 Measuring systematic
risk
6.4.3 Calculating the beta
coefficient
6.4.4 Portfolio beta
6.5 The Capital Assets Pricing
Model and The security market
line
7.0 SHORT-TERM FINANCING

AND PLANNING
7.1 Importance of working capital
7.2 Working capital management
and
the risk-return trade-off
1.3 Managing current assets and
current
liabilities
7.4 Cash conversion cycle
7.5 Strategies in working capital
management
7.6 The cash budget
7.7 Sources of short-term financing
7.8 Cost of short-term financing
8.0
MANAGEMENT OF CASH
AND MARKETABLE
SECURITIES
8.1 Difference between cash and

marketable securities
8.2 Motives for holding cash
8.3 Cash management objectives
8.4 Understanding float
8.5 Managing the cash inflow
8.6 Managing the cash outflow
8.7 Investing idle cash
8.8 Characteristics of short-term
securities
8.9 Types of marketable securities
9.0
MANAGEMENT OF
ACCOUNTS RECEIVABLE
9.1 Importance of accounts
receivable
9.2 Terms of credit
9.3 Credit analysis
9.3.1 The 5Cs of credit
9.3.2 Credit scoring
9.4 Monitoring of accounts
receivable
9.4.1 Aging schedule
9.4.2 Average collection
period
9.5 Credit collection
9.6 Analysis of credit policy
changes
10.0 INVENTORY MANAGEMENT

10.1 Purposes and types of
inventory
10.2 Inventory management
technique
the EOQ model
10.3 Reorder point and safety stock
10.4 EOQ and inflation
10.5 Other inventory management
techniques
42
References:
Main reference :
Gittman, L., & Zutter, C. (2015). Principles of Managerial Finance (14th ed.). London:
Pearson
Additional references:
Keown, A. J., Martin, J. D., Petty, J. W., & Scott, D. F., Jr. (2005). Financial
management: Principles and applications (10th ed.). New Jersey: Prentice Hall, Inc.
Ross, S., Westerfield, R., Jordan, B., Joseph, L., & Tan, R. (2012). Fundamental of
corporate finance (Asia Global Edition). Kuala Lumpur: McGraw-Hill.
MahfuzahSalim (2012). Fundamental of Financial Management, Questions and Solutions.
Additional Information:
Email: [email protected]
Extension number: 6922
Room number: 245 SBM Building
Consultation hours: Sunday & Wednesday: 2.00 4.00 pm
Room number: 233 Economics Building
Consultation hours: Sunday & Tuesday: 10.00 am 1.00 pm
Monday & Thursday: 11.30 am 1.00 pm
Consultation hours: Monday: 9.00 am 10.30 am
Wednesday: 9.00 am 10.30 am
Consultation hours: Monday: 10.00 am 12.00 pm
8
Consultation hours: Tuesday: 10.00 am 2.30 pm
Consultation hours: Thursday: 2.00 pm 4.00 pm
Consultation hours: Sunday: 10.00 am 12.00 pm
Consultation hours: Wednesday: 10.00 am 12.00 pm; 2.00 pm 4.00 pm
Consultation hours: Monday: 2.30 pm 4.00 pm
Thursday: 2.30 pm 5.00 pm
Room number: Economics Building

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SCHOOL OF ECONOMICS, FINANCE & BANKING

UUM COLLEGE OF BUSINESS

2. Course Code : BWFF2033

10. Teaching-learning and assessment strategy:

14. Content outline and contact hours per topic:

3.0 ASSESSING FIRMS

3.2.1 Common-size analysis

5.0 TIME VALUE OF MONEY

6.0 RISK AND RETURN

7.0 SHORT-TERM FINANCING

8.1 Difference between cash and

10.0 INVENTORY MANAGEMENT

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