FOUNTAIN UNIVERSITY, OSOGBO
(UNIVERSITY OF NASR-UL-LAHI FATHI SOCIETY OF NIGERIA)
COLLEGE OF MANAGEMENT AND SOCIAL SCIENCES
DEPARTMENT OF ACCOUNTING AND FINANCE
Introduction Part ACC405 : Strategy Financial Management I (3 credits, compulsory), Duration of
course in Hours and Weeks; (45 hours, 15 weeks) 3 hours in a week
Lecturer’s Name: S.A. Raji, Assistant Lecturer, B.sc. Accounting, M.Sc. International Finance and
Economic Policy; asdera223@yahoo.com.
Office address: Accounting & Finance Department. Post Graduate Building, Top Floor, Room 5 by
the left. Consultation Hour: Monday, Tuesday and Wednesday 11am-1:30p.m.
Lecturer’s Name: I.A. Sadiq, Lecturer II, B.Sc. and M.Sc. Accounting, ACA
Office address: Accounting & Finance Department. Post Graduate Building, Ground Floor, Room 4
by the left.
Course Content: The Nature, Scope and Purpose of Financial Management; Mathematics of Finance:
Annuity, Sinking Fund and Amortization; Financial Markets; Capital Market Analysis: Portfolio
Theory and Capital Market Efficiency; Cost of Capital; Sources and Problems of New Business
Financing; The Banking System and Industrial Finance, Mortgage Finance; Capital Structure of
Firms; Capital Budgeting Under Certainty; Superiority of the Net Present Value over other criteria.
Course Justification: ACC405 (Strategy Financial Management I) is important for the students
because the course teaches the students how to manage scares resources to achieve organizational
goals. The students are expected to pass this course because it would give them a better understanding
and prepare them for next stage in life.
Course Objectives: The main objective of this course is to equip the students with the required
knowledge in Financial Management. The specific objectives are: to enhance the ability of the
students to under and make Financial decision for organization.
Course Requirement: Every student of Accounting should offer this course.
Methods of Grading: The course will be graded as 30% for Continuous Assessment and 70%
examination at the end of the semester.
Course Delivery Strategies: The course is theoretical in nature, so it is better done by teaching method
using face to face as a method of delivery.
Lecture:
Week 1: The Nature, Scope and Purpose of Financial Management: At the end of this topic, the
students are expected to know *Nature of finance and its interaction with other management
functions* The changing role of the finance manager and his/her position in the management
hierarchy* Under the shareholders' wealth maximization principle as an operationally desirable
finance decision criterion.
Reading List: Financial Management Eighth edition (2002) by I.M Pandey published by VIKAS
Publishing House PVT LTD, New Delhi. Akingunola, R.O. and Olanrewaju, P. O. (2000),
Fundamentals of Finance, CESAP OOU, Ago- Iwoye
Week 2-4: Mathematics of Finance: Annuity, Sinking Fund and Amortization: The objectives are as
follows: the students are expected to be able to *under what gives money its time value* method of
calculating present and compound values* use of present value technique (discounting) in financial
decisions * basic concept of IRR.
Reading List: ICAN Study Pack, Financial Management, V/I Publishers, 2009. International Financial
Management Eighth edition (2002) by I.M Pandey, Published by VIKAS Publishing House PVT
LTD, New Delhi
Week 5: Financial Markets and Capital Market Analysis: Portfolio Theory and Capital Market
Efficiency: Objectives; the students are expected to; understand the concept of the capital market
efficiency* highlight the developments in the stock markets (secondary market) and the new issue
market (primary market) in Nigeria.
Reading List: International Financial Management Eighth edition (2002) by I.M Pandey, Published by
VIKAS Publishing House PVT LTD, New Delhi. Ross, S. A; Westerfield, R. W. and Jordan, B. D.
(2007), Core Principles and Applications of Corporate Finance, McGraw-Hill/Irwin, NY
Week 6-7: Cost of Capital: Objective; student should be able to *Explain the general concept of
opportunity cost of capital* Distinguished Between the project cost of capital and the firm's cost of
capital* Methods of calculating component cost of capital and the weighted average cost of capital*
Illustrate the cost of capital calculation for a real company..
Reading List: International Financial Management Eighth edition (2002) by I.M Pandey published by
VIKAS Publishing House PVT LTD, New Delhi. Steve N. I. (2005), Investment Analysis and
Financial Management Strategy, Institute for Development Studies, Enugu.
Week 8-10: Capital Structure of Firms and Capital Budgeting Under Certainty: Objectives: The
students are expected to: understand how firm finances its assets* investment appraial decision
(method of increasing the value of the firm).
Read lists: Ross, S. A; Westerfield, R. W. and Jordan, B. D. (2007), Core Principles and Applications
of Corporate Finance, McGraw-Hill/Irwin, NY. ICAN Study Pack, Financial Management, V/I
Publishers, 2009
Week 11-12: Sources and Problems of New Business Financing and Superiority of the Net Present
Value over other criteria and The Banking System and Industrial Finance, Mortgage Finance.
Reading List: : International Financial Management Eighth edition (2002) by I.M Pandey published
by VIKAS Publishing House PVT LTD, New Delhi. Steve N. I. (2005), Investment Analysis and
Financial Management Strategy, Institute for Development Studies, Enugu. Ross, S. A; Westerfield,
R. W. and Jordan, B. D. (2007), Core Principles and Applications of Corporate Finance, McGrawHill/Irwin, NY. ICAN Study Pack, Financial Management, V/I Publishers, 2009
Week 13: Revision Week