YANBU UNIVERSITY COLLEGE DEPARTMENT OF MANAGEMENT SCIENCES B.Sc. INDUSTRIAL MANAGEMENT COURSE SYLLABUS Course Code: Course Title: Contact hours: Credit hours: Course Instructor: Office Location: Email: IMT 409 Financial Management 3 hours per week 3 hours Dr. Haitham Ahmed Abdelmoneim YUC, G2, Room no. 23. ahmedh@rcyci.edu.sa CATALOG DESCRIPTION This course introduces students to the role of Financial Management in modern business organizations and the financial environment in which they operate. It deals with Time Value of Money, Concept and Applications of Risk-Return trade-off and the Management of Working Capital, Capital Asset Investments, Capital structure and Dividend Policy. The course also provides insight into the working of Capital Markets, raising Long Term and Short term Funds and International Financial Management REQUIRED TEXTBOOK James. C. Van Horne, and John. M. Wachowicz, Jr., “Fundamentals of Financial Management”, Prentice Hall, 13th Edition, 2008, ISBN: 978-0-273-71363-0. COURSE OBJECTIVES Upon successful completion of the course, the student will demonstrate competency by being able to: 1. Explain the role of Financial Management in business organizations and the financial environment in which they operate. 2. Discuss the concepts of Time Value of Money and the Risk-Return trade off and their applications in Financial Management 3. Explain the meaning, importance and the mechanism of managing working capital. 4. Explain the Capital Budgeting process and techniques. 5. Discuss the meaning of capital structure, operating and financial leverage and capital structure determination. 6. Explain the types of dividend policies, stock dividends and stock splits. 7. Describe sources of long term and short term funds and the concept of International Finance. Page 1 of 4 IMT 409 – FINANCIAL MANAGEMENT COURSE OUTLINE: Module Topic Pages to read from required textbook 1 Introduction to Financial Management 1) The role of Financial Management 2) Organization of finance function 3) Business and financial environment Chapter 1: pp. (1-13) 2 Time Value, Risk and Return 1) The concept of time value of money 2) Future value and present value of money 3) Concept of risk and return 4) Diversification and Capital Asset Pricing Model (CAPM) Chapter 3: pp. (41-70) Chapter 5: pp. (97125) Homework Assignments from required textbook Assignment# 1: Page 14, Questions no: (2, 5, 8, 11, 12). Assignment# 2: 1) Pp. 63-64, Problems no: (1, 2, 4, 8, 9). 2) Pp. 120-121: Problems no: (1, 2, 4, 5) Week 1-2 3-4 Quiz# 1 (5 marks): last class of week 5 on modules 1 & 2 Chapter 8: Assignment# 3: Working Capital Management pp. (2051) Page 217: 1) Meaning, objectives and issues of working 219) Problem no. 1 capital management Chapter 9: 2) Page 246: 2) Management of cash and marketable pp. (2213 Problem no. 1 securities 247) 3) pp. 276-277: 3) Accounts receivable and inventory chapter 10: Problems no. 4 & pp. (249management 7. 278) Mid-Term Exam (25 marks): Last Class of Week 8 Modules (1, 2, 3) Chapter 12: Assignment# 4: Capital Budgeting pp. (3071) Page 319: 1) Capital budgeting process 321) Problem no. 1 4 2) Generating investment project proposals Chapter 13: 2) Page 347: 3) Project evaluation and selection techniques pp. (323Problems no. 1 & 349) 4. Chapter 15: Assignment# 5: pp. (3811) Page 412: 415) Capital Structure and Dividend Policy Problem no. 1. Chapter 16: 1) Cost of capital of the firm 2) Page 444: 5 pp. (4192) Operating and financial leverage Problems no. 1 & 446) 3) Determination of capital structure 2. Chapter 17: 3) Page 469: pp. (451Problem no. 1. 471) Chapter 19: Assignment# 6: pp. (5051) Page 524: Sources of Finance 525) Problem no. 1 1) Need for long term finance Chapter 20: 2) Page 548: 2) Public issues, private placements, bonds, pp. (5276 Problem no. 1 preferred stocks and common stocks 550) 3) Page 572: 3) Term loans and lease financing Chapter 21: Problems no. 1 & pp. (5533. 573) 5-7 8 9 11-12 13-14 2|P age IMT 409 – FINANCIAL MANAGEMENT Quiz# 2 (5 marks): last class of week 14 on modules 5 & 6 Deadline for submission of the 6 homework assignments Revision Final Exam 15 16 STUDENT ASSESSMENT The major components of this course grade include: Quizzes (2 quizzes @ 5 marks each) 10 marks Homework Assignments (6 assignments) 15 marks Mid-Term Exam 25 marks Final Exam 50 marks The Quizzes and Mid-semester Exam will be administered in class as shown on the attached weekly schedule. Makeup exam will be scheduled only in the event of extreme, independently verifiable, and documentable reasons clearly beyond the student’s control. To conduct a makeup exam or not, will be at the sole discretion of the Students’ Affairs Department at YIC. A quiz will not be repeated and the student absent will receive a grade ‘zero’. The required Homework Assignments must be submitted in accordance with the time-line provided within this syllabus. Late homework submissions will attract deductions from the maximum marks. COURSE REQUIREMENTS: Final course grades will be assigned according to the following scale: Letter Grade A+ A B+ B C+ C D+ D F Average 95 – 100 90 – 94 85 – 89 80 – 84 75 – 79 70 – 74 65 – 69 60 – 64 Below 60 Dr. Haitham Ahmed Abdelmoneim Coordinator, B.Sc. Program 3|P age IMT 409 – FINANCIAL MANAGEMENT Dr. Abdullah Faisal Basiouni HoD, IMT department September 2014 4|P age