East West University
Department of Business Administration
FIN -201, Sec – 1, Business Finance, Spring - 2009
Course Instructor: Md. Lutfur Rahman, Senior Lecturer & Assistant proctor
Office:11th floor, DDC building,
Tele Office: 9882308, 8812335, Ext. 277, e-mail-lutfur@ewubd.edu
Class hours
Course Section Class Time Weekday Room No
FIN201
1
03:10 - 04:40
MW
DDC-1001
Office hours
Day
Time
Sunday
Monday
Tuesday
Wednesday
Thursday
12:00 p.m. - 03:00 p.m.
01:30 p.m.- 03:00 p.m.
12:00 a.m.- 03:00 p.m.
01:30 p.m.- 03:00 p.m.
12:00 a.m. - 02:00 a.m.
COURSE OBJECTIVE
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 and inventory of a corporation. The student will also learn about financial
planning, managing of short term financing, and cost of capital.
COURSE CONTENTS
This course covers the following topics: Cost of Capital, Financial Planning, Working
Capital Management, Managing Cash and Marketable Securities, Credit Management,
Inventory Management and Short Term Financing.
TEXT BOOK
Scott Besley and Eugene F. Brigham - Essentials of Managerial Finance, 13th Edition,
The Dryden Press, 2000.
OTHER REFERENCE
Lawrence J. Gitman - Principles of Managerial Finance, 9th Edition, Herper Collions
Publishers Inc., 2001.
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 classes.
TENTATIVE CLASS SCHEDULE:
TOPICS
Chapter
No. of Class
Lawrence J. Gitman - Principles of
Managerial Finance
1
1. An Overview of Finance
1
(Topics to be covered: Definition of finance,
finance managers responsibility, different forms
of business)
2. The Cost of Capital
(Topics to be covered: Definition, assumptions of
cost of capital, basic concept of cost of capital,
cost of long term debt, cost of preferred stock,
cost of common stock, weighted average cost of
capital, weighting schemes, weighted marginal
cost of capital, investment opportunity schedule).
10
3
Scott Besley and Eugene F. Brigham Essentials of Managerial Finance
3.
Financial Planning & Control
4
4
(Topics to be covered: Financial planning and
control, sales forecast, projected financial statements,
operating financial analysis, operating leverage,
financial breakeven analysis, and financial leverage).
4. Working Capital Policy
(Topics to be covered: Working capital terminology,
relationship of working capital accounts, cash
conversion cycle, working capital investment and
financing policies)
13
2
14
3
Managing Short Term Assets
5.
Cash Management
(Topics to be covered: Cash management, cash
budget, cash management techniques)
6.
Credit Management
14
3
14
3
15
3
(Topics to be covered: Credit management, credit
policy, receivable monitoring, changes in credit
policy)
7.
Inventory Management
(Topics to be covered: Inventory management, types
of inventory, optimal inventory level, inventory
control system)
8.
Managing Short Term Liabilities
(Topics to be covered: Sources of short-term
financing, accrual, accounts payable, short term bank
loan, cost of bank loan, choosing a bank, use of
security in short-term financing)
Exam Schedule:
Term I Exam- 18 February 2009
Term II Exam – 18 March 2009
Final Exam – 29 April 2009
Home assignments:
Home assignments play a key role for quiz and exam preparation. Home assignments
must be submitted at the beginning of the class on the day the assignments are due. There
will be at least four assignments of which best three will be counted.
Quiz:
There will be at least four quizzes of which the best three will be counted for the grading
purpose. No makeup quiz will be entertained whatever the reason.
Examinations:
There will be three examinations. Each exam is important and you must be serious about
them. Makeup exam is especially discouraged.
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.”
COURSE EVALUATION:
Grades are earned, not given. Grades will be based on home assignments, quizzes, and
examinations. The distribution of total marks of 100 will be as follows:
Quizzes
10 percent
Assignments and Class
performance
10 percent
First Mid-term Examination
25 percent
Second Mid-term Examination
25 percent
Final Examination
30 percent
Total
100 percent
GRADING POLICY:
Guideline for converting numerical scores into letter grades:
A+
73 - below 77
C+
90 - below 97
A
70 - below 73
C
87 - below 90
A-
67 - below 70
C-
83 - below 87
B+
63 - below 67
D+
80 - below 83
B
60 - below 63
D
77 - below 80
B-
- below 60
F
97 97- 100