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1051560-367665King Abdul Aziz UniversityCollege of BusinessDepartment of Finance00King Abdul Aziz UniversityCollege of BusinessDepartment of FinanceCourse of Study OutlineFINA252Basics of Financial Management Semester 1, 2018-19Version date ( DATE \@ "d MMMM, yyyy" \* MERGEFORMAT 16 September, 2018)Course of Study OutlineCourse of study codeFINA252 Course of study nameBasics of Financial ManagementTeaching Term/Semester & YearSemester 1, 2018-19Contact Hours (hrs/wk) or total contact hoursDuration: 3 teaching days over 15 weeksContact hours: 45 hours Credit Points3.000Teaching StaffNameRoleRoom No.Email AddressConsultation TimesDr. Mazharul IslamLecturer 7-214malislam@kau.edu.samazharulislam@Sunday, Tuesday & Thursday Course DescriptionThis is an introductory course in Financial Management. It is designed to build students understanding of basic financial theory and practices. Students will address current financial management issues faced by business decision-makers and will build the essential analytical skills necessary for dealing with various financial issues. This course involves a careful overview of the finance field and will start by defining finance and the role of financial managers in terms of objectives and goals. Also, it will involve defining and understanding corporate governance and its implication on corporate world. It will then, cover the basic concept of time value of money and it is importance in the finance field in terms of decision making. Lastly, as one of the most important roles of the financial manager is to be able to use financial statements to analyse and project a firm`s financial performance, It will help to identify investment opportunities, thus increase shareholders wealth. Aims and ObjectivesThe overall aim of the course is to provide students with the basics of financial management such as concept of finance, role of financial managers, concept of time value of money, trade-off between risk and return, how investors will be tempted to take on extra risk to get greater return, identify the principals involved in managing a firm’s investment in working capital, relationship between present value and future value, difference between simple interest and compound interest, value of bonds, major financial ratios (according to liquidity, financial leverage, coverage, activity and profitability), limitation of financial ratios, develop analytical and problem solving skills, skills and attitudes conducive to lifelong learning.ContentThe following topics will be covered in the financial management course;The Role of Financial Management.Important concepts of Finance. Financial Statements, Taxes, and Cash Flow.The time value of money.Risk and Return.Financial Statement Analysis.Cash-Flow Analysis, and Financial Planning.Learning and Teaching StructureTeaching method: Lectures, Class exercise Students are expected to read lecture slides and complete homework before coming to class.In a semester, you should normally expect to spend, on average, 9 hours of total time (formal contact time plus independent study time) a week on a 3 credit point unit of study.Resources and Reference MaterialBrealey, Myers, and Marcus “Fundamentals of Corporate Finance”, 3rd edition, with additional materials from “Fundamentals of Corporate Finance, Alternate 5th edition” and Essentials of Corporate Finance, 2nd edition” Ross, Westerfield, and Jordan available at University Book Store or can buy online from . Soft copy of this book is available in my website.Students will need to have a CalculatorPowerPoint slides for each lecture, solution manual, and the Unit Outline (course syllabus) will be available in my ()Material on the URL is updated several times each week. Students are required to check the site frequently to ensure that they have up-to-date information. WeekLecture TopicContentsReadingAssessment1The Firm and the Financial ManagerDefine of financial managementThe Role of Financial ManagementGoals of financial managementAgency problemsPages 7-25 of the text bookLecture note 1Class attendance and participation2Accounting and FinanceThe balance sheetThe income statementTaxesCash flowPages 111-125 of the text bookLecture note 2Class attendance and participation3Financial Statements AnalysisCash flow and financial statementsStandardized financial statementsRatio AnalysisThe Du Pont IdentityUsing financial statement information Pages 133-151 of the text bookLecture note 3Quiz-14Financial PlanningDefine financial planningFinancial planning modelsThe percentage of sales approachExternal financing and growthPages 81- 100 of the text bookLecture note 4Class attendance and participation5The Time Value of Money Future value and compoundingPresent value and discountingMore about present and future valesPages 33- 69 of the text book Lecture note 5Class attendance and participation6The Time Value of Money Future and present values of multiple cash flowsAnnuities and perpetuitiesEffective interest rate and Nominal interest rate.Pages 33- 69 of the text book Lecture note 6Class attendance and participation7Valuing Bonds- Bond and bond valuation- Bond features- Bond ratingPages 255- 273 of the text bookLecture note 7Homework 1 submissionMid-Term Exam8Valuing BondsTypes of bondBond MarketsInflation and interest ratesDeterminants of bond yieldsPages 255- 273 of the text bookLecture note 7Class attendance and participation9Valuing StocksCommon stock valuationFeatures of common stockPages 279- 296 of the text bookLecture note 8Quiz-2Class attendance and participation10Valuing StocksFeatures of preferred stockStock marketsReview classPages 279- 296 of the text bookLecture note 8Class attendance and participation11The Cost of Capital and Leverage and Capital StructureCapital StructureCapital Structure and cost of equityPages 435- 454 and 559-561 of the text bookLecture note 9Class attendance and participation12The Cost of Capital and Leverage and Capital StructureOptimal capital structureObserved capital structurePages 435- 454 and 559-561 of the text bookLecture note 9Class attendance and participation13Practical exercise on financial statement analysis and Report writing on financial statement analysis14Revision ClassAll relevant chapters that will cover in the final examHomework 2 Submission15Final Exam-According to university scheduleAssessmenta. Assessment Task Details:Assessment TaskIndividual/ Group TaskWeightingClass participationIndividual10%QuizzesIndividual14%2nd examIndividual16%HomeworkGroup20%Final examIndividual40%In order to successfully complete this unit, students must achieve At least 60% of the marks allocated to the all assessment tasks.Course Requirements & PoliciesYou are expected to fulfil the following requirements of the course to obtain a grade: Participation/AttendanceAttendance for face-to-face class is compulsory. Any student not attending a class should provide a medical certificate or a written justification (signed by a parent or guardian in the case of a full-time student). Students are required to participate actively in class discussion, exercises and other class activities. Students are expected to read the topics before coming to class to facilitate their understanding of the subjects and in the discussion.Class Assignments/Homework Each student is required to submit written assignment/homework of selected cases. These assignments must be done as a group. Assignments must be submitted on the specified date. If you perform poorly on an assignment, I will give you the opportunity to redo the work for a better grade (with a lower maximum). For any assignments/homework given, the format of the paper should be as follows:A cover page with your details – Name, Student ID and Sections Font Arial, size 11 with 1.5 spacingInclude a reference page (if needed) for every assignment/homework that you submitted.Quizzes must be taken on the specified date. If you encounter any problem to take the quizzes on the specific date, you are required to sit for quiz within the next five days by submitting medical certificate. Final Result CategoriesSymbol%A+95-100A90-94B+85-89B80-84C+75-79C70-74D+65-69D60-64 ................
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