Bfi 4301 Financial Management
Bfi 4301 Financial Management
1. To enable the student appreciate the importance of financial management in all aspects of life.
2. To enable the student understand theories of financial management.
3. To factor risk in setting the rate of return.
4. Ability to evaluate and choose optimal investment decisions.
5. To be able to evaluate the effects of dividends payments.
6. To enable the student to determine the optimal capital structure of the business by choosing right mix
between debt & equity.
Contact Hours 3 credit hours.
Prerequisite(s)
COURSE OUTLINE
Agency theory, Capital Budgeting: PBP, ARR, NPV, IRR, PI and Capital rationing. Risk
analysis; Capital Assets pricing model and APT. Inflation analysis. Capital structure
decisions: Net income approach, Net operating income approach, traditional approach, M-M
approach. Operating and Financial leverage. Dividend policy. Working capital management;
current asset management. Short-term sources of funds.
Lectures will be used to introduce material on the formal aspects of the module.
Instructional Material/Equipment
Textbooks, board, Handouts and library.
Handouts will be provided occasionally for core topics. It must be noted that handouts
are not sufficient by their very nature and the student will be required to generously
supplement handout material.
Academic Assessment
Type Weighting (%)
Examination 70
Coursework 30
CAT 1 (Supervised CAT) 10
CAT 2 (Supervised CAT) 10
CAT 3 (Supervised CAT) 10
30
Total 100 %
Course Materials
Textbooks for the Course
1. Punctuality is fundamental.
2. Active participation in class discussions is encouraged
3. Let us refrain from signing the attendance register on behalf of colleagues who are
not present
Course Instructor
Name Isaac Otiende Ojung’a
Email address 0724805704