Advanced Financial Management Course Outline

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NEW GLOBAL VISION COLLEGE

MASTER OF BUSINESS ADMINISTRATION [MBA]

Advanced Financial Management prerequisite: MBA 532


Credit Hrs: 3
Course Description:
This course will be a comprehensive study of the financial tools and the skills needed by
managers responsible for managing corporate financial holdings. The emphasis of the class is
on developing analytical skills and sound financial intuition. The primary focus of the class is
valuation. Fundamental principles are applied to topics such as the valuation of investment
projects, the valuation of a business, the valuation of mergers and restructurings, as well as the
firm’s financial policies, including capital structure, dividends, and stock repurchases,
acquirement, venture capital, investment banking, long-term debt and leasing, options and
derivatives, international financial management and strategic and operational financial planning.

Course Objectives:
The primary objective of the course is to expose students to the types of financial issues that they are
likely to encounter as corporate managers, decision makers and investors. This course gives students
who already have a basic understanding of financial theory and related analytical techniques with
experience in the application of that theory and those techniques to evaluate a firm’s investment and
financial decision. This experience is obtained through the analysis and decision of real life financial
situations that have been faced by corporate managers and investors.

The main emphasis of the course is on the identification of value creating strategies and investments.
At the end of the course, students are expected to be able to define a firm’s financial problem and the
available courses of actions, and to determine an appropriate course of action. Students should find
the skill useful as they grow as corporate managers and decision makers.

Course contents
CHAPTER I: INTRODUCTION: An overview of financial management
CHAPTER II: FINNCIAL ANALYSIS AND PLANNING: Financial analysis; The need for financial
analysis; Source of financial data; Approaches to financial analysis and interpretation; Financial
planning (forecasting); The planning process; The importance of sales forecasting; Techniques of
determining external financial requirements.
CHAPTER III: THE TIME VALUE OF MONEY AND THE CONCEPT OF INTEREST: The concept of
time value of money; The future value (compounding); The present Value (discounting)
CHAPTER IV: BOND AND STOCK VALUATION AND THE COST OF CAPITAL: Bonds and Stocks
Valuation; Cost of Capital
CHAPTER V: INVESTMENT DECISION MAKING/CAPITAL BUDGETING: Introduction to capital
budgeting; investment analytical tools; capital budgeting under uncertainty; investment decision
under uncertainty; investment decision under inflation
CHAPTER VI LONG-TERM FINANCING; leverages raising funds in capital market; long-term
financing instruments.
UNIT – VII: SPECIAL TOPICS IN FINANCIAL MANAGEMENT

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1. Corporate combination
2. Corporate failure
3. International financial management, especially the exchange rate and foreign
exchange market

MODE OF TEACHING-LEARNING PROCESSES


A combination of the following major methods of delivery will be used for each course of the
MBA program:
 Lecture
 Individual and/or group assignment/projects/term papers,
 Class presentation and discussion by students.
 Case analysis depending on the nature of course.

ASSIGNMENTS (50%)
1. A student should find any article from reputable journal related to any of the
aforementioned chapters and make a critical evaluation of that article. Maximum page is
3 excluding the cover page and reference. Use the article review guideline attached
separately.
2. A group of four students should pick any one of the aforementioned sub-topics in special
topics in Advanced Financial Management (chapter 7) (as appropriate). The report
should not be more than 15 pages including the cover page and reference.

ASSESSMENT SCHEME
 Individual Assignment………………………………………………………………..20%
 Group Assignment…………… ………………………………………………………30%
 Final Examination ……….…………………………………………………….……..50%
 Total ………………………………………………………………………………….100%

Text
 Block B. and Geoffrey A.H (2008): Foundations of Financial Management (12th ed.), Mc
Graw Hill, New York.
References:
 Eugene F. Brigham, Introduction to financial management, 4th ed.
 Brealy, R., and Mayers, S., principles of Corporate finance, 2 nd ed., Hill international
Book Company, 1984.
 Brigham, E, E., and Campasey, B.J., introduction to Financial Management, The Dryden
Press, 1985.

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 Ray, M., and Nevue, P., Fundamentals of Managerial Finance, 2 nd ed., South-Western
Publishing Company, 1985.
 Weston. J.F., and Brigham, E.F., Essentials of Finance, 7th ed., Press; 1981.
 Bklery (ed), The Essence of Financial Management, Prentice Hall L.
 Werner Stoner, Modern Financial managing; continuity and change, Harper Collins
College, 1999A.Y

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