3.FINA211 Financial Management
3.FINA211 Financial Management
3.FINA211 Financial Management
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I. Course Description
This course is an introduction to the management of a firm’s financial resources given a wealth
maximization decision criterion. All of the important and basic areas of financial management
are covered in this course. An emphasis will be placed on helping the students gain insight
about the finance principles and concepts before launching the specifics. Important financial
management concepts that are covered include financial analysis, capital budgeting; cost of
capital; long and short term financing and dividend decision.
This course is been designed to enable the student to acquire a broad familiarity in the field
of financial management.
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After completing the course the student should be able to:
1. Demonstrate the ability to explain the basic concepts and processes involved in, Ratio
Analysis, Time value of money, Debt and equity valuation, Capital Structure, Capital
Budgeting, and Dividend decisions. (Knowledge)
2. Evaluate and apply the basic financial tools and techniques used to examine every
component of the income statement and balance sheet. (Skill)
3. Identify the financial context and effects of common business decisions and strategies.
(Self-Development)
4. Critically evaluate and undertake financial management decisions. (Autonomy &
Responsibility; Role in Context)
Financial
FINA 211 CLO 1 CLO 2 CLO 4 CLO 4 CLO 3
Management
A. Text Book
Fundamentals of Corporate Finance, Ross, Wester field, and Jordan, McGraw-Hill
11th Edition 2016.
B. Reference Books
1. Fundamentals of Corporate Finance by Brealey and Myers, 9th Edition (BM)
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2. Corporate Finance: theory and practice, Aswath Damodaran, Wiley
C. Other References
Journal of Finance
Financial Management
Journal of Banking and Finance
Journal of Financial and Quantitative Analysis
Journal of Financial Economics
Review of Financial Studies
Journal of Business Finance and Accounting
Journal of Empirical Finance
Management Decision
Managerial Finance
finance.yahoo.com
www.bloomberg.com
www.forbes.com
finance.google.com
The course employs a balance mix of concept development, problem-solution, small case
analysis, tracking web resources, data analysis etc. to inculcate conceptual and analytical
skill
All students are expected to observe the academic rules and regulations of the IMT, Dubai.
They are advised to refer to the Students Handbook for specific details. Feel free to ask your
instructor or Program Director if you have any questions as to how those Rules and Regulations
apply to this course. NOT Knowing the Rules is not an excuse for breach of the Rules. Regular
attendance is expected of all students. Assignments are important part of this course. All
assignments must be handed –in on the due dates. Evaluation would be based quizzes,
assignments, class participations, group projects, midterm examination and final examination
as per the following scheme:
Quizzes 20%
Assignments 20%
Group Project 20%
Final Examination 40%
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Sessions Content Assignments
1 Introduction to Financial Management
and Financial Management Objective.
Shareholder wealth Maximization Vs Profit
Maximization,
Financial Management Decisions- Financing
decision, Investing decisions and Dividend
decisions.
2, 3 Working with Financial statements Case discussion on Emaar
Financial planning and control Properties
Cash flow analysis
Ratio analysis
Evaluate organizational performance using
financial ratios.
4 ,5 Time Value of Money, Present Value Home work,
Computations Numerical Exercises
Annual Value, Annuity value. chapter -5
6,7 Capital Budgeting Decisions, Need and Reading Assignment
importance of capital –Chapter-9
Budgeting, Methods of evaluating Capital
Budgeting projects
Net Present Value, Internal Rate of return, Pay
back Method,
Discounted Pay back, Accounting rate of return,
Profitability
Index. Criteria for selecting the best method of
evaluation.
8 Capital Budgeting -Complex Investment Case Discussion
decisions
IRR versus NPV
Cross over point.
Sensitivity Analysis, Scenario Analysis and other
methods for dealing with the uncertainty in cash
flows.
9, 10 Introduction to Risk, Return, and Cost of Capital. Homework-Exercises – Chapter-
Contents of cost of capital- cost of debt cost of 13
preference share, cost of Equity and cost of
retained Earning.
Calculating the Weighted Average Cost of Capital
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11 Sources of funds –long term and short term Presentation on Long term and
sources Short term sources of Funds
12, 13 Financing Decisions-Financial Leverage Capital Reading
Structure Assignment
Policy , Capital Structure Decisions , long-term Chapter-17
financing,
Instruments and strategies. Optimal capital
structure for an
Organization. Factors that affect a corporation’s
choice of
capital Structure policies
14 Dividend payout policy. Dividend decisions, Case discussion and presentation
Bonus shares its implications-some practical on Gainesboro Machine tools
insights, factors that affect a corporation’s choice corporation
of dividend policies Reading Assignment- Chapter no-
Stock dividend stock split ,rights issue 18
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