East West University
MBA Program
Course Instructor: Dr. Tanbir Ahmed Chowdhury
Professor & Chairperson,
Department of Business Administration
Office Room #, Department of Business Administration
DDC Building, 7th Floor
Telephone Office : 9882308, 8812335, Ext. 244
Fin-503, Intermediate Financial Management, Fall - 2008
Section-1, Room #Academic Building- 303
Class hour
:
Monday
Wednesday
Office hour
: Monday
Tuesday
Wednesday
06:00 p.m.- 07:30 p.m.
06:00 p.m.- 07:30 p.m.
05:00 p.m.-06.00 p.m.
05:00 p.m- 06:00 p.m
05:00 p.m.-06:00 p.m.
COURSE OBECTIVE:
The Course is designed to orient students with tools and techniques that managers use for
efficient running of the finance department of a corporation. After completing the course,
the students are expected to learn how to manage working capital, cash & marketable
securities, credit management and inventory of a corporation. The student will also learn
about managing of short term financing, financial planning & control ,capital structure
and Long Term Debt.
COURSE CONTENTS:|
This course covers the following topics: Working Capital Management, Managing Cash
and Marketable Securities, Credit Management, Inventory Management, Short Term
Financing, Financial Planning & Control, Capital Structure and Long Term Debt.
TEXT BOOK:
Scott Besley and Eugene F. Brigham - Essentials of Managerial Finance, 12th
Edition, The Dryden Press, 2000.
OTHER REFERENCE:
Lawrence J. Gitman - Principles of Managerial Finance, 10th Edition, Herper
Collions Publishers Inc., 2005.
ATTENDANCE:
Students are expected to attend all classes and prepare home assignments on due time.
Students' participation will be strongly encouraged. If any student misses more than three
classes, he/she is required to take course teacher's permission to attend the subsequent
classes provided that the student had valid reason for missing the class.
Penalty for Cheating by Students in Examinations
As per East West University rules “There is zero tolerance for cheating at EWU. Students
caught with cheat sheets in their possession, whether used or not used, & / or copying
from cheat sheets, writing on the palm of hand, back of calculators, chairs or nearby
walls, etc. would be treated as cheating in the exam hall. The only penalty for cheating in
the exam hall is expulsion from EWU."
TENTATIVE CLASS SCHEDULE:
TOPICS
Chapter
No. of Class
1
1
Scott Besley & Eugene F. Brigham,Essential of Managerial
Finance
1. An Overview of Financial Management
Managerial Finance in the 20th Century
The Financial Manager Responsibility
Alternative forms of Business Organization
2.
Financial Planning & Control
4
4
Financial Control- Budgeting & Leverage
Operating Breakeven Analysis
Operating Leverage
Operating & Financial Leverage
3.
Capital Structure
The Target Capital Structure
Business and Financial Risk
Determining the Optimal Capital structure
Degree of Leverage
Liquidity and Capital Structure
11
4
4.
Working Capital Policy
Working Capital Terminology
Requirement for external working capital
Relationships of working capital accounts
13
4
The cash conversion Cycle
Working capital investment& Financing Policy
Advantages & Disadvantages of Short term Financing
5.
Managing Short Term Assets
14
5
15
2
17
3
The Cash Management
Cash Budget
Cash Management Techniques
Marketable Securities
Credit Management
Inventory Management
6. . Managing Short Term Liabilities
Source of Short term Financing
Accruals
Accounts Payable
Short Term Bank Loans
Cost of Bank Loans
Commercial Paper
7.
Long Term Debt
Traditional Debt Instrument
Specific Debt contract features
Bond Innovation
Bond Ratings
COURSE EVALUATION:
The distribution of total marks of 100 will be as follows:
1. Class Performance
05 percent
2. Assignments
10 Percent
2. Quiz
15 percent
3. Fist Mid-term Examination
20 percent
4. Second Mid-term Examination
20 percent
5. Final Examination
30 percent
Total
100 percent
GRADING POLICY:
Guideline for converting numerical scores to letter grades:
Numerical Scores (in %) Letter Grades
97 - 100
A+
90 - below 97
A
87 - below 90
A-
83 - below 87
B+
80 - below 83
B
77 - below 80
B-
73 - below 77
C+
70 - below 73
C
67 - below 70
C-
63 - below 67
D+
60 - below 63
D
- below 60
F
Examination Particulars
Date
Examination
October 13, 2008.
First Mid-Term
November 10, 2008.
Second Mid-Term
December 22, 2008.
Final