IBA, Jahangirnagar University
Course Handbook
Financial Management
BUS 510
Friday, 5:20 PM–8:20 PM (F3)
INSTRUCTED BY
S.M.A. Moudud Ahmed
moudud19391@juniv.edu
Reference Text
Scott Besley and Eugene F. Brigham. Essentials of Managerial Finance. 14th edition.
USA: Thomson, South-Western.
Course Objectives
The course introduces the theoretical and practical aspects of finance. The
covered materials will enhance the participants' decision-making capability
regarding any organization's introductory financial issues. After completing the
course, the participants will be able to learn about
Learning Outcome
After completing this course, the student should be able to
Explain and evaluate the concept of shareholder wealth maximisation and
how it relates to other possible objectives of the firm’s management and the
nature of the agency relationship inherent in the corporate structure.
Understand the significance of information included in the income statement
and balance sheet, discuss the importance of the cash flow statement and
explain the difference between accounting net income for the firm and cash
flow; analyse a firm's financial performance using financial ratio analysis.
Describe how interest rates are determined and the role played by financial
markets and institutions in the global financial system.
Explain the concepts of compounding and discounting and utilize these tools
to calculate the future value and present value of lump sums, annuities, and
uneven cash flow streams and in addition calculate the value of other
variables such as the interest rate, time period, and periodic payment.
Explain the determinants of intrinsic value and utilize these concepts to
determine the value and yields of bonds and preferred and common stocks.
Calculate various measures of project profitability using traditional capital
budgeting techniques including Payback Period, Net Present Value, Internal
Rate of Return, and Modified Internal Rate of Return.
Explain the concept of the cost of capital and how it is affected by the firm’s
capital structure and the application of these concepts to capital budgeting
decision making and dividend policy.
Identify the steps in the financial planning process and discuss the
importance of sales forecasts and pro forma financial statements.
Describe the risk-return tradeoff involved in working capital management
and explain how firms’ choose appropriate levels of working capital and
sources of short term financing.
Course Contents
Chapter 1: An Overview of Managerial Finance
Chapter 2: Analysis of Financial Statements
Chapter 3: The Financial Markets
Chapter 4: The Time Value of Money
Chapter 5: The Cost of Money
Chapter 6 &7: Valuation Concepts
Chapter 9: Capital Budgeting Techniques
Chapter 11: The Cost of Capital
Chapter 14: Working Capital Policy
Chapter 17: Financial Planning and Control
Evaluation
Class Tests and quizzes 50%
Class Attendance and Participation, 10%
Individual Assignments
Final Examination 40%
Policies
There will be no make-up/re-take for the missed class tests. If anyone
misses such an examination (deliberately/accidentally), he/she will get
zero grade for that particular quiz.
Late submission of the assignments, home tasks, and reports is strongly
discouraged. Failure to submit any assignment on time and date will result
in the deduction of allocated grades for that particular assignment. The
extent of such penalty will be based on the length of delay as against the
stated date and time of submission.
Students are advised to maintain academic honesty at the time of handling
assignments and participating in examinations. Zero grade will be awarded
if any individual student’s assignment, and/or examination answer script
are found to be copied and/or plagiarized.
