Islamic University of Gaza
Advanced Financial Management
Faculty of Commerce
First Semester 2013/2014
Accounting Department
Ramadan Al-Omari, FCCA
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Learning Objectives and Course Contents:
At the end of the semester, students should be able to understand the theoretical and practical
aspects of the following topics:
Schedule
Week No. 1
Details
Week No. 2
Capital Budgeting Decision Process (contd.)
Motives for Capital Expenditure
Steps in the Process
Capital Budgeting Techniques
Payback Period
Net Present Value (NPV)
Internal Rate of Return (IRR)
Week No. 3
Capital Budgeting Decision Process
Motives for Capital Expenditure
Steps in the Process
Week No. 4
Capital Budgeting Techniques (contd.)
Payback Period
Net Present Value (NPV)
Internal Rate of Return (IRR)
Week No. 5
Risk and Refinements in Capital Budgeting
Risk and Cash Flows
Risk Considerations
Week No. 6
Risk and Refinements in Capital Budgeting (contd.)
Risk and Cash Flows
Risk Considerations
Week No. 7
Cost of Capital in Long Term Financial Decisions
Cost of Long Term Debt
Cost of Preferred Stock
Cost of Common Stock
Cost of Retained Earnings
Weighted Average Cost of Capital
Week No. 8
Cost of Capital in Long Term Financial Decisions (contd.)
Cost of Long Term Debt
Cost of Preferred Stock
Cost of Common Stock
Cost of Retained Earnings
Weighted Average Cost of Capital
Week No. 9
Week No. 10
Mid-Term Exam
Leverage and Capital Structure (contd.)
Breakeven Analysis
Operating Leverage
Financial Leverage
Total Leverage
Week No. 11
Leverage and Capital Structure
Breakeven Analysis
Operating Leverage
Financial Leverage
Total Leverage
Week No. 12
Leverage and Capital Structure (contd.)
Breakeven Analysis
Operating Leverage
Financial Leverage
Total Leverage
Week No. 13
Dividend Policy
Cash Dividend Payment Procedures
Residual Theory of Dividends
Arguments for Dividend Irrelevance
Arguments for Dividend Relevance
Factors Affecting Dividend Policy
Types of Dividend Policies
Week No. 14
Dividend Policy (contd.)
Cash Dividend Payment Procedures
Residual Theory of Dividends
Arguments for Dividend Irrelevance
Arguments for Dividend Relevance
Factors Affecting Dividend Policy
Types of Dividend Policies
Week No. 15
Week No. 16
General Revision
End of Term Exam
Text Book
Principles of Managerial Finance, Twelfth Edition, Lawrence J. Gitman
Examinations and Marks
Mid-Term Exam: 30 Marks, Final Exam: 60 Marks, Course work: 10 Marks