Financial Management

CATALOG DESCRIPTION: The role of financial management within companies; the nature of financial decisions companies make; implementation of investment appraisal techniques; the importance of capital structure and its implications for the company.

RATIONALE: Foundations of corporate finance is an integral part of business administration. The course provides students with knowledge, competences and skills to make investment decisions, to estimate the cost of capital, to understand the importance of capital structure and payout policy.

LEARNING OUTCOMES: As a result of taking this course, the student should be able to:

1. Explain the financial objectives of a company and the nature of financial decisions companies make.

2. Demonstrate knowledge and understanding of financial ratios and their interpretation.

3. Demonstrate knowledge and understanding of time value of money and its implications.

4. Apply various investment appraisal techniques used by financial managers and discuss their importance for the company.

5. Discuss the importance of cost of capital and its implications for company financing decisions.

METHOD OF TEACHING AND LEARNING: In congruence with the teaching and learning strategy of the college, the following set of tools are used:

- Class lectures, interactive learning (class discussions) and practical problems solved in class.

- Exercises and primary source documents are assigned as homework, the solutions of which are reviewed in class.

- Office hours: students are encouraged to make full use of the office hours of their instructor.

- Use of Blackboard.

- Use of the Simulated Trading Room for illustrating examples

ASSESSMENT:

Summative:

1st assessment: In-class written examination (One-hour, closed book, essays/problems) 40%

2nd assessment: In-class written examination (Two-hour, closed book, essays/problems, comprehensive) 60%

Formative: Exercises / Comprehensive problems 0%

The formative assignments prepare students for the examinations and ensure that students are actively engaged during the term. The 1st assessment tests Learning Outcomes 1, 2 and 3. The 2nd assessment tests Learning Outcomes 3, 4 and 5.