The University of Jordan
Faculty: Business
Department: Finance
Semester: Fall Semester
Academic Year: 2015/2016
Course Name: Principles of managerial Finance (Course Number: 1603211 )
----------------------------------------------------------------------------------------------------------Principles of
Credit hours
3
Level
1
Prerequisite
Coordinator/
Lecturer
Prof. Fayez Haddad
Course website
elearning.ju.edu.jo
E-mail
http://eacademic.ju.edu
.jo/fhaddad
Office hours
Day/Time
Sunday
11-12:30
Office
number
Monday
--
Office phone
fhaddad@ju.
Place
Building
1st floor
edu.jo
Tuesday
x
Accounting
24279
Wednesday
Thursday
x
Course Description
This course aims to provide the principles and basic concepts of financial management
such as: the role and the environment of financial management, how to prepare the
financial statements and analyze them, understanding the concept of time value of
money and how to calculate each of present and future value of money. It also provides
the basics of calculating the risk and return for both individual security and investment
portfolio. It provides a fundamental explanation for the most important financial models;
the capital asset pricing model. In addition, it introduces the students to different types
of financial securities traded in financial markets such as common stocks, preferred
stocks and bonds and helps students to understand how to use the suitable capital
budgeting techniques and make the relevant investment decisions.
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1,
Learning Objectives
This course aims to:
1. Describe the managerial finance function and the goal of the firm.
2. Understand financial statements and develop the essential skills for preparing
them.
3. Discuss the role of time value of money and how to apply it in different financial
aspects to solve related problems.
4. Understand the fundamentals of risk, return and risk preferences and explain the
CAPM and its relationship to the SML.
5. Determine the relevant cash flows in capital budgeting.
6. Build the essential skills required to calculate, interpret and evaluate different
capital budgeting techniques such as the payback period, NPV and IRR, and
discuss NPV and IRR in terms of conflicting rankings.
Intended Learning Outcomes (ILOs):
Successful completion of the course should lead to the following outcomes:
A. Knowledge and Understanding: Students are expected to:
A1- Demonstrate an understanding of the function of financial managers and the main
objective of the firm.
A2- Be able to reflect the basic understanding of financial statements and their
components and how to analyze them.
A3- Show the fundamental knowledge and understanding of various financial concepts
such as the time value of money, risk and return, capital budgeting, etc.
A4- Understand the valuation of bonds and stocks.
B. Intellectual Analytical and Cognitive Skills: Students are expected to:
B1- be able to analyze, at basic level, the financial performance of the company.
B2- be able to identify the risk and return characteristics of both individual security and a
portfolio.
B3- be able to identify the suitable technique to evaluate the capital budgeting and make
investment decisions.
C. Subject- Specific Skills: Students are expected to:
C1- be able to apply the various financial concepts, techniques and procedures in a real
life examples such as:
 Preparing capital budgeting
 Assessing and measuring the risk and return of financial securities
 Performing the financial analysis for the company and assessing its financial
position in term of liquidity, profitability, activity and degree of leverage.
 Performing the fundamental analysis for bonds and stock.
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D. Transferable Key Skills: Students are expected to:
D1- Build a solid theoretical and analytical foundation from different concepts and
principles gained by this course, upon which the understanding of the advanced financial
courses will be built.
D2- constitutes a clear picture about the nature of finance science.
ILOs: Learning and Evaluation Methods
ILO/s
Learning Methods
Evaluation Methods
Knowledge and
Understanding
Lectures and power
point presentations
Exam:
- Mid-Term exam (On
line), weight 30%
- Second exam (On line),
weight 20%
-Final Exam (On line),
weight 50%
Intellectual
Analytical and
Cognitive Skills
Discussions
Specific Skills
and Transferable
Key Skills
Homework
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Course Contents
Content
Reference
Week
Ch1: Introduction to
managerial Finance
Principles of
Managerial
Finance
‫اإلدارة المالية‬
Principles of
Managerial
Finance
‫اإلدارة المالية‬
Principles of
Managerial
Finance
‫اإلدارة المالية‬
Principles of
Managerial
Finance
‫اإلدارة المالية‬
Principles of
Managerial
Finance
‫اإلدارة المالية‬
Principles of
Managerial
Finance
‫اإلدارة المالية‬
Principles of
Managerial
Finance
‫اإلدارة المالية‬
Principles of
Managerial
Finance
‫اإلدارة المالية‬
Principles of
Managerial
Finance
‫اإلدارة المالية‬
Week 1
A1
Week 2
A1+A2
Ch2: The Financial
Market Environment
Ch3: Financial
Statements
Ch4: Cash Flow
(Pages: 117-121)
Ch5: Time Value of
Money
Ch6: Interest rate &
bonds valuation
Ch7: Common stocks
and preferred stocks
Ch8: Risk and Return
Ch10: Capital
Budgeting
Techniques
Weeks 3+4
Questions
Q 3, 5, 23
Week 5
ILO/s
A1+A2+A3+A4
B1+B2
Weeks 6+7
Q 3, 4, 17, A119, 20, 30
A4+B1+B2+C1+D
1
Week 8
Q 11, 15
Week 9
Q 5, 7, 8, A4+B1+D1
11
Weeks
10+11
Q 4, 9, 13, A4+B2+C1+D1+D
21, 26
2
Weeks
12+13
Q 1, 12, 18
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B1+B2
A3+A4+
B1+D1+D2
Learning Methodology
The course is covered through regular lectures over 16 weeks (3 hours each week), class
discussion and participation, and raised questions regarding course topics and subjects.
Projects and Assignments
Not Applicable
Evaluation
Evaluation
Point %
Date
Midterm Exam
30%
9/4/2015
Second Exam
20%
27/4/2015
50%
18/5/2015
Project
NA
Assignments
NA
Homework
NA
Final Exam
Main Reference/s:
L. J. Gitman & C. Zutter, (2012) Principles of Managerial Finance, 13th edition, Global
Edition, Pearson.
.‫ األردن‬-‫ عمان‬،‫ الطبعة الثالثة‬،0202 ،"‫ "اإلدارة المالية‬.‫فايز حداد‬
Other References:
A. R. Brealey and C. S. Myers (1997) Principles of Corporate Finance, 5th ed., McGrawHill, Inc.
J. F. Weston, S. Besley, and F. E.Brigham, (1996) Essentials of Managerial Finance, 11th
ed., The Dryden Press.
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Other Notes:

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Concerns or complaints should be expressed in the first instance to the module
lecturer; if no resolution is forthcoming, then the issue should be brought to the
attention of the module coordinator (for multiple sections) who will take the concerns
to the module representative meeting. Thereafter, problems are dealt with by the
Department Chair and if still unresolved the Dean and then ultimately the Vice
President. For final complaints, there will be a committee to review grading the final
exam.
For more details on University regulations please visit:
http://www.ju.edu.jo/rules/index.htm
Attendance is expected for this course. Thus, students exceeding the absence level
outlined in the University's Handbook will be awarded an F mark.
Make sure to show to class on TIME.
Make sure to switch off your mobiles before coming to the class room.
Participation is essential in the classroom. Student's participation will become a factor
when making decision on borderline cases.
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