SUNWAY BUSINESS SCHOOL _ SUBJECT OVERVIEW FIN2014: FINANCIAL MANAGEMENT Course : Subject Code and Title Pre-requisite subjects Semester : Contact Hours Lecturer : Tutors : : : Telephone No. Consultation Hours : : : Bachelor of Science (Hons) Accounting and Finance Bachelor of Science (Hons) Financial Analysis Bachelor of (Hons) Finance Bachelor of Science (Hons) Financial Economics Bachelor of Science (Hons) in Actuarial Studies Bachelor of Science (Hons) Business Management Bachelor of Science (Hons) Business Studies Bachelor of Arts (Hons) Entrepreneurship Bachelor of Science (Hons) in International Business FIN2014 Financial Management FIN1014 Principles of Business Finance, or FIN1034 Introduction to Business Finance 2-hour lecture; 1-hour workshop; 1-hour tutorial Dr. Lianne Lee Mei Quin (liannel@sunway.edu.my ) Mr. Mong Sum Thye (sumthyem@sunway.edu.my ) (603)-7491 7321 Please refer to e-Learn Subject Description The aim of this subject is to introduce students to the role of financial managers and financial decision making in a corporation. This course will cover time value of money concepts on bond valuation, stock valuation and investment opportunities, working capital management, portfolio theory and asset pricing model, cost of capital and types of fundings, capital structure and dividend payout policy. Subject Objectives The overall objective of this subject is to help students understand the importance of ways to optimise the use of financial resources to achieve the company’s goal. Within the framework of the above overall goal, this subject has several specific objectives The specific objectives are to: (1) Develop an understanding of the role of financial management in maximising shareholders wealth Last updated:25-Feb-22 1 Sunway University Business School (2) FIN2014 FINANCIAL MANAGEMENT Apply concepts and tools in long term financing, capital budgeting and working capital management (3) Appreciate the fundamental theories of optimal capital structure and risk management (4) Examine current financial management challenges and to develop explanations for these issues. Subject Learning Outcomes On completion of this subject, students are expected to be able to: SLO1 Apply the relevant finance theories and tools used for financial management in firms’ decisions. (C3, PLO1) SLO2 Demonstrate the use of relevant tools in the financing and investment concepts and theories. (P3, PLO3) SLO3 Prepare the recommendations and solutions on financial management, and its implications on shareholders’ wealth. (C3, PLO2) Programme Learning Outcomes On completion of this programme, students are expected to be: PLO1 Apply fundamental knowledge in business management PLO2 Evaluate problems critically and justify the relevant solutions effectively PLO3 Demonstrate the use of relevant tools and techniques for business analyses PLO4 Function on multicultural and multi-disciplinary teams PLO5 Demonstrate effective communications PLO6 Demonstrate the use of information and digital technologies to support business decisions PLO7 Demonstrate the quantitative skills for business decisions PLO8 Demonstrate leadership and team skills PLO9 Manage information and acquire skills for life-long learning PLO10 Demonstrate managerial and entrepreneurial knowledge PLO11 Demonstrate professional values in business decisions Mapping of Subject Learning Outcomes to Programme Learning Outcomes Subject Learning Outcomes SLO1 SLO2 SLO3 PLO1 PLO2 PLO3 Programme Learning Outcomes PLO4 PLO5 PLO6 PLO7 PLO8 PLO9 √ √ √ Programme Objectives This programme aims to PLO1 produce employable business graduates or professionals with a sound knowledge and understanding of accounting and finance/actuarial studies/business management/business studies/financial economics or financial analysis. Last updated:25-Feb-22 2 Sunway University Business School FIN2014 FINANCIAL MANAGEMENT PLO2 produce business graduates who are ethical and responsible leaders or managers. PLO3 produce business graduates with the skills and competencies in critical thinking and problem solving PLO4 produce business graduates with managerial and entrepreneurial skills; and PLO5 produce graduates who recognise the need to engage in life-long learning fo personal and professional growth and development Mapping of Subject Learning Outcomes to Programme Objectives Subject Learning Outcomes PO1 PO2 Programme Objectives PO3 PO4 PO5 √ SLO1 SLO2 SLO3 √ √ Delivery Methods Lectures are delivered with MS Power Point as a visual aid. Each lecture covers a major topic. Students should note that while a lecture is self-contained in terms of presentation, the topics are closely interrelated, and this interconnectedness is essential to their understanding of the contents of this subject. While the objective is to convey an understanding of financial management, students are required to learn concepts, methods, and tools used by financial managers in their attempts to make effective investing and financing decisions. Tutorials and workshops are designed to supplement lectures and to enhance students’ understanding of topics. In tutorials, students are given primarily exercises in financial analysis and planning, working capital management, capital budgeting process, and long-term financing to further strengthen the subject knowledge. Students are expected to participate actively in all tutorials. Assessment Students are assessed through a combination of coursework and a final written examination. Subject assessment will be weighted as follows: No. 2. Last updated:25-Feb-22 Method of Assessment Coursework: Group Assignment Mid-semester test Final Examination 3 Total 30% 20% 50% Sunway University Business School FIN2014 FINANCIAL MANAGEMENT Coursework (50%) Students are required to complete a group assignment for submission and mid-term test. The details of the assignment will be provided in lecture and eLearn. Final Examination (50%) The final examination will assess students’ understanding of theoretical and practical concepts taught. Further details will be announced in class. IMPORTANT Marks awarded are provisional and subject to change and are only deemed final once approved by the Board of Examiners. Late Submission Penalty Clause The deadline for submission of assignment is to be strictly adhered to. No extension of time will be allowed except in extenuating circumstances, e.g., medical reasons. Students who wish to apply for an extension of time for the submission of assessment item(s) after the due date shall put in writing the request, together with validated documentary evidence to support the application. If an assignment is submitted after its due date (and without approval for extension), the following penalty will be imposed: ● Coursework submitted after the deadline but within 1 week will be accepted for a maximum mark of 40%. ● Work handed in following the extension of 1 week after the original deadline will be regarded as a non-submission and marked at zero. Academic Malpractice Plagiarism, whether inadvertent or deliberate, shall include the following: ● Word-for-word copying of sentences or whole paragraphs from one or more sources, or presenting substantial extracts from books, articles, thesis, other unpublished work such as working papers, seminar and conference papers, internal reports, computer software, lecture notes or tapes, without clearly indicating their origin. ● ● Using very close paraphrasing of sentences of whole paragraphs without due acknowledgement in the form of reference to the original. Submitting another student’s work in whole or in part. ● Use of other person’s ideas, work or research data without acknowledgement. Collusion, whether inadvertent or deliberate, shall include the following: ● Submitting an “individual assignment” that was jointly prepared by the candidate and any other third party, e.g., other students, family, professionals, or tutors/lecturers. Last updated:25-Feb-22 4 Sunway University Business School FIN2014 FINANCIAL MANAGEMENT ● Submitting a “group assignment” that was jointly prepared by the group and any external party, e.g., family, students from other subjects, or professionals. ● Copying each other’s work and passing it off as an individual effort. Please refer to Student Handbook for Diploma and Undergraduate Programmes or Blackboard for details about academic malpractice penalties. Subject Outline Lecture/Week Topics Readings 1 Introduction to Corporation and financial decision making 2 3 Bond valuation Stock valuation Chapter 3, p.47- p.67 Chapter 4, p.78-p.86 4 5 Analysing financial statements Finance perspective: Importance of Cash and value creation Making investment decisions and net present value Chapter 28, p.743 - p.760 Chapter 4, p.95-p. 99 Chapter 29, p.770 -p. 777 Chapter 6, p.135 - p.141 6 Chapter 1, p.2 - p.13 7 Mid-Semester Test 8 9 Semester Break Introduction to risk & return: Capital asset Chapter 7, p.174-180, p.185-190 pricing model Chapter 8, p.205-p. 212 10 Cost of Capital 11 Capital structure in a perfect market Chapter 9, p.228 -p.241 Chapter 19, p. 508 - p.523 Chapter 17, p.451-p.463 12 Payout Policy Chapter 16, p.426-p.435 13 – 14 Revision Reading List Main reference: Brealey, R.A., Myers, S.C., and Allen, F. (2020). Principles of Corporate Finance, 13th ed. New York: McGraw-Hill Additional references and recommended reading: Berk, J. and DeMarzo, P. (2020). Corporate Finance. 5th edition. Boston, Pearson Education. Last updated:25-Feb-22 5 Sunway University Business School FIN2014 FINANCIAL MANAGEMENT Ross, S.A., Westerfield, R.W., Jordan, B.D. Wong, R., and Wong, B. (2017). Essentials of Corporate Finance. Asia Global Ed. McGraw-Hill. Last updated:25-Feb-22 6