FUNDAMENTALS OF FINANCIAL MANAGEMENT

Course Objectives:
The objective of this course is to introduce the basic tools and techniques required in modern financial management. Further, the course will also introduce some of the underlying concepts and theories involved. All the topics covered will start from the basics but will gradually build up so that the students gain a comprehensive understanding of the material covered. An important aim of the course is to equip the student with the basic concepts and techniques required to major in financial management at four year universities.

Course Description :
This course covers issues related to the financial structure of firms and decisions to acquire assets as well as their financing. It deals with the basic tools, concepts, and techniques of financial analysis applied to corporate decision making.  The course introduces the application of financial principles to problems of acquisition, use, and management of funds in business. It also includes choosing the optimum source of financing and considering the sources of funds from capital markets.

Course Outline:

1. Introduction to financial management
2. Introduction to financial markets
3. Essential concepts in finance
4. Forecasting future needs for funds
5. Analysis of financial statements
• Financial planning and control
• Cash flow analysis
• Ratio analysis
6. Introduction to risk and returns
7. Time value of money
8. Bond and stock valuation
9. Introduction to capital budgeting and decision making
10. The cost of capital
11. Dividend policy
12. Introduction to assets management
13. Introduction to working capital management
14. Introduction to cash and cash management
15. Accounts receivable and inventory
16. Short term financing

 Learning Outcomes:
After completing the course the student should be able to:

1. Explain the basic concepts and processes involved in Ratio Analysis, Break-even analysis, Planning and Forecasting, Debt and equity valuation, Time value of money, Capital Structure, Capital Budgeting, Current Asset management and Mergers and Acquisitions.
2. Understand the basic financial tools and techniques used to analyze every component of the income statement and balance sheet
3. Describe the financial context and effects of common business decisions and strategies.

Teaching Methods:
Electronic presentation; Use of a Spreadsheet package to implement financial management tools, and CD-ROM for action learning;Use of the Internet for up-to-date global info;Usage of Statistical CD-ROM data.

Skills to be developed:
This course helps students in developing the following skills:
1. Communication (Oral & written) Through Assignments, Case Study discussions and
Examinations
2. Analytical Through Case studies and examinations
3. Team Work Through Case studies
4. Creative Thinking Through Case studies, assignments, classroom
discussions
5. Adaptability to Change Through Case studies, and examinations
6. Ethics Through lectures and assignments
7. Use of Information Technology Through use of PCs, Internet, CD-ROM, Statistical
data base in the library
8. International issues Through Case studies, assignments, classroom
discussions, and examinations

Evaluating Student Performance:
Class participation and attendance 10%
Individual assignments /or/ Tests (two) 40%
Mid-term examination 20%
Project Presentation 30% 

Grading:
Percentage Score Letter Grade GPA Points Percentage Score Letter Grade GPA Points

90 – 100 A 4.0 70 - 74 C 2.0
85 - 89 B+ 3.5 65 - 69 D+ 1.5
80 - 84 B 3.0 60 - 64 D 1.0
75 - 79 C+ 2,5 < 60 F 0.0

Educational Resources:

Course Schedule & Outline:
Sixteen Week Semester, 3 hrs/Wk