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Financial Management syllabus

FIN 2078 units · 49 topicsAcademic year 2083/84
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Financial Management

8 units

1. Introduction (4 LHs)

  1. Concept and scope of financial management
    1. Concept and scope of financial management
  2. Financial management decisions
    1. Financial management decisions
  3. Financial manager’s responsibility
    1. Financial manager’s responsibility
  4. Forms of organizations
    1. Forms of organizations
    2. The agency problem
  5. Business ethics and social responsibility
    1. Business ethics and social responsibility
  6. Financial innovations
    1. Financial innovations

2. Financial Planning and Forecasting (6 LHs)

  1. Concept of financial planning and forecasting
    1. Concept of financial planning and forecasting
    2. Strategic plan
    3. Operating plan
  2. Financial plan, Sales forecast
    1. Financial plan, Sales forecast
  3. The additional fund needed formula
    1. The additional fund needed formula
  4. Excess capital adjustments
    1. Excess capital adjustments
  5. Forecasted financial statement
    1. Forecasted financial statement: forecasted income statement and balance sheet
  6. Using regression to improve forecast
    1. Using regression to improve forecast

3. Capital Budgeting (8 LHs)

  1. Concept of capital budgeting decision
    1. Concept of capital budgeting decision
  2. Capital budgeting decision process
    1. Capital budgeting decision process
  3. Types of capital budgeting projects
    1. Types of capital budgeting projects
  4. Estimation of cash flows, Capital budgeting decision techniques
    1. Estimation of cash flows, Capital budgeting decision techniques: payback period, discounted payback period, net present value, profitability index, internal rate of return, modified internal rate of return
  5. Merits and limitations of each capital budgeting decision technique, Replacement decision
    1. merits and limitations of each capital budgeting decision technique, Replacement decision
  6. Evaluation of projects with unequal lives
    1. Evaluation of projects with unequal lives

4. Risk, Return and the Portfolio Theory (6 LHs)

  1. Concept and measurement of return and risk, Measurement of rate of return
    1. Concept and measurement of return and risk, Measurement of rate of return: expected and average rate of return
  2. Measurement of risk
    1. Measurement of risk: variance, standard deviation and coefficient of variations: Measurement of risk and return in portfolio context
  3. Risk diversification
    1. Risk diversification
  4. Minimum variance portfolio
    1. Minimum variance portfolio
    2. Efficient portfolio
    3. Optimal portfolio
  5. Capital assets pricing model (CAPM)
    1. Capital assets pricing model (CAPM)

5. Capital Structure and leverage (6 LHs)

  1. Concept of capital structure
    1. Concept of capital structure
  2. Capital structure issues
    1. Capital structure issues
  3. Estimating the optimal capital structure
    1. Estimating the optimal capital structure
  4. Factors affecting capital structure
    1. Factors affecting capital structure
  5. Business risk and financial risk
    1. Business risk and financial risk
  6. Leverage
    1. Leverage: operating and financial leverage
  7. Degree of operating and financial leverage
    1. Degree of operating and financial leverage
  8. Combining operating and financial leverage, Impact of financial leverage
    1. Combining operating and financial leverage, Impact of financial leverage
    2. Indifference charts
  9. Breakeven analysis
    1. Breakeven analysis: operating, cash and financial BEP

6. Current Assets Management (7 LHs)

  1. Concept of current assets management. Cash management
    1. Concept of current assets management. Cash management: significance of cash management, motives of holding cash, importance of maintaining adequate cash
  2. Inventory management
    1. Inventory management: significance of inventory management, objectives of holding inventories, inventory management techniques, inventory control system
  3. Receivable management
    1. Receivable management: significance of receivable management, cost of maintain receivables, elements of credit policy, evaluating proposed changes in credit policy

7. Dividend policy (5 LHs)

  1. Nature and types of dividend policy, Dividend versus capital gain
    1. Nature and types of dividend policy, Dividend versus capital gain
  2. Dividend irrelevance theory
    1. Dividend irrelevance theory
  3. Bird in the hand theory
    1. Bird in the hand theory
  4. Tax preference theory
    1. Tax preference theory
  5. Factors affecting dividend policy
    1. Factors affecting dividend policy
  6. Stock dividends and stock splits
    1. Stock dividends and stock splits: stock split, stock dividend, effect on stock price, Stock repurchase.

8. Multinational Financial Management (6 LHs)

  1. Nature of multinational corporations
    1. Nature of multinational corporations
  2. Reasons for companies going global
    1. Reasons for companies going global
  3. Multinational versus domestic financial management
    1. Multinational versus domestic financial management
  4. Exchange rates quotations
    1. Exchange rates quotations
    2. Cross rates
  5. Interbank foreign currency quotations
    1. Interbank foreign currency quotations
  6. Trading in foreign exchange rates
    1. Trading in foreign exchange rates: spot rates and forward rates
  7. Interest rate parity
    1. Interest rate parity
  8. Purchasing power parity
    1. Purchasing power parity