BUS7302 Financial Management
BUS7302 Financial Management
1. Course Description
This course is designed to introduce the students to the fundamental issues of financial
management. The course emphasizes understanding finance theory and working knowledge of the
economic environment in which the firm operates to develop appropriate financial strategies.
Hence, it covers the whole range of basic finance concepts, risk analysis, cost of capital
determination, capital budgeting, capital structure, and dividend policy. It will also cover the
concepts of working capital management, hybrid securities, and merger.
2. Course Objectives
The main goal of this course is to develop a foundation of financial management concepts. The
course involves studies on decision-making utilizing financial resources available to the firm from
the manager's perspective. This will enable the student to understand how corporations make
essential investment and financing decisions. The course also lays a foundation for more complex
financial issues that may arise in subsequent years.
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4. Recommended Books
• Text Books:
i. Principles of Managerial Finance, Lawrence J. Gitman and Chad J. Zutter, 14th
Edition, Pearson
ii. Essentials of Managerial Finance, Scott Besley and Eugene F. Bringham, 14th
Edition, Thomson South-Western
5. Course Outline:
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Lecture Topic Discussion Points Methods of
Instruction
6 Risk and Return Uncertainty, Risk and Return; Risk-free and Risk- ▪ Lectures
adjusted Return; Bond Returns; Return from a ▪ Oral Presentation
Stock Investment; (+ppt)
Mid Term Examination
7 Risk and Return Types of Risks: Business Risk and Financial ▪ Lectures
Risk, Total Risk and Specific Risk, Diversifiable ▪ Oral Presentation
Risk and Systematic Risk, Single-Asset Risk and (+ppt)
Portfolio Risk; Risk Measurement: Variance, ▪ Mathematical
Standard Deviation and Coefficient of Variation. Problem Solving
8 Introduction to Valuation of Bond and Debenture; Valuation of ▪ Lectures
Security Valuation Preferred Stock; Valuation of Common Stock ▪ Mathematical
Problem Solving
Class Test 03
9 Working Capital Working Capital Management; Cash Conversion ▪ Lectures
Management Cycle (CCC); Inventory Management, Accounts ▪ Oral Presentation
Receivable Management; Cash Management. (+ppt)
▪ Mathematical
Problem Solving
10 Capital Structure Concept of Leverage; Operating and Financial ▪ Lectures
Leverage; Concept of Capital Structure ▪ Oral Presentation
(+ppt)
Class Test 04
11 Dividend Policy Elements of Payout Policy; Cash Dividend ▪ Lectures
Payment Procedures; Share Repurchase ▪ Oral Presentation
Procedure; Dividend Reinvestment Plans; (+ppt)
Constant-Payout-Ratio Dividend Policy; Regular
Dividend Policy; Low, Regular, and Extra
Dividend Policy.
12 Presentation