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Course Title:: Financial Management

Course Description: Financial Management is an introductory finance course designed to make students understand the basic finance concepts.

The course involves studies on decision-making utilizing financial resources available to the firm from the perspective of the manager.

The course emphasizes the understanding of finance theory and working knowledge of the financial environment in which the firm operates in order to develop appropriate financial strategies. Hence, it covers the whole range of basic finance concepts, economics and financial environment, financial statement analysis, risk analysis, the valuation process, capital budgeting, and capital structure and dividend policy. It will also cover financial analytical tools, cash flow management techniques & working capital management. Course Content: An Overview of Financial Management (Chapter

1) Financial Statements, Cash Flow, and Taxes (Chapter

2) Balance Sheet, Income Statement, Statement of Retained Earnings, Net Cash Flow, Statement of Cash Flows NOPAT, Net Working Capital, Free Cash Flow Analysis of Financial Statements (Chapter

3) Ratio Analysis The Du Pont Equations Financial Planning and Forecasting

(Chapter 4) The Sales Forecast The AFN Equation Financial Markets and Institutions

(Chapter 5) Financial Markets Efficient Market Hypothesis Risk and Rates of Return (Chapter

7) Stand-Alone Risk Risk in a Portfolio Context The Relationship between Risk and Rates of Return Some Concerns about Beta and the CAPM Time Value of Money

(Chapter 8) Future and Present Value; Ordinary Annuity, Annuity Due and Perpetuity Effective Annual Interest Rate (EAR) Loan Amortization Bonds and Their Valuation

(Chapter 9) Key Characteristics of Bonds Bond Valuation Bond Yields Yield to Maturity (YTM), Yield to Call (YTC), Current Yield Annual and Semiannual Coupon Bonds Stocks and Their Valuation

(Chapter 10) Common Stock Constant Growth Stocks Valuing Stocks Expected to Grow at a Nonconstant Rate Valuing the Entire Corporation Stock Market Equilibrium Preferred Stock The Cost of Capita

l (Chapter 11) Cost of Debt, Preferred Stock and Retained Earnings Cost of New Common Stock Composite, or Weighted Average, Cost of Capital, WACC The Basics of Capital Budgeting

(Chapter 12) Payback Period, Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR) Cash Flow Estimation and Risk Analysis

(Chapter 13) Estimating Cash Flows for Evaluating Capital Budgeting Projects Real Options and Other Topics in Capital Budgeting

(Chapter 14) Capital Structure and Leverage

(Chapter15) The Target Capital Structure Financial Risk Determining the Optimal Capital Structure The Hamada Equation Capital Structure Theory Trade-Off Theory, Signaling Theory Distributions to Shareholders: Dividends and Share Repurchases

(Chapter 16) Establishing the Dividend Policy in Practice Dividend Reinvestment Plans Stock Dividends and Stock Splits Stock Repurchases Working Capital Management (Chapter 17) The Cash Conversion Cycle The Cash Budget, Cash Management Techniques Inventory and Receivables Management Sources of Short-term Financing Bank Loans, Accounts Payable (Trade Credit)

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