Module Outline Semester: 02 From (Jan, 2013) to (Apr, 2013) FBB1413: INTRODUCTION TO FINANCE MODULE DETAILS Course Location : Unit Controller/Examiner : Contact Numbers : Email Address : Pre-requisite : Co-requisite : Credits : Contact hours : No. of weeks : No. of assignments : Portfolio : Venue : Day : Time : Cyberjaya Zahir Osman Ext. 8407 zahiro@limkokwing.edu.my nil nil 3 3 hours (1 ½ hours lecture + 1 ½ hours tutorial) 12 teaching weeks + 1 Final examination week 2 N/A Prepared by : Zahir Osman Signature : Checked by : Date Signature : This document comprises the following: Essential Information Specific Module Information Module Rules & Regulations Grades Plagiarism Module Introduction Module Aims & Objectives Learning Outcome Specific Generic Learning Skills Syllabus + Lecture Outline References Assessment Schedule Assessment Criteria Specific Criteria Other documents as follows will be issued to you on an ongoing basis throughout the semester: Handouts for Assignments Submission Requirements + Guidelines 1 R 01 - 06121 2 All Rights Reserved No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Date 1.0 2.0 3.0 ESSENTIAL INFORMATION All modules other than electives are 'significant modules' As an indicator of workload one credit carries and additional 2 hours of self study per week. For example, a module worth 3 credits require that the student spends an additional 6 hours per week, either reading, completing the assignment or doing self directed research for that module. Submission of ALL assignment work is compulsory in this module. A student cannot pass this module without having to submit ALL assignment work by the due date or an approved extension of that date. All assignments are to be handed on time on the due date. Students will be penalised 10 percent for the first day and 5 percent per day thereafter for late submission (a weekend or a public holiday counts as one day). Late submission, after the date Board of Studies meeting will not be accepted. Due dates, compulsory assignment requirements and submission requirements may only be altered with the consent of the majority of students enrolled in this module at the beginning/early in the program. Extensions of time for submission of assignment work may be granted if the application for extension is accompanied by a medical certificate. Overseas travel is not an acceptable reason for seeking a change in the examination schedule. Only the Head of School can grant approval for extension of submission beyond the assignment deadline. Re-submission of work can only receive a 50% maximum pass rate. Supplementary exams can only be granted if the level of work is satisfactory AND the semester work has been completed. Harvard referencing and plagiarism policy will apply on all written assignments. SPECIFIC MODULE INFORMATION Attendance rate of 80% is mandatory for passing module. All grades are subject to attendance and participation. Absenteeism at any scheduled presentations will result in zero mark for that presentation. Visual presentation work in drawn and model form must be the original work of the student. The attached semester program is subject to change at short notice. MODULE RULES AND REGULATIONS: Assessment procedure: These rules and regulations are to be read in conjunction with the UNIT AIMS AND OBJECTIVES All assignments/projects must be completed and presented for marking by the due date. Marks will be deducted for late work and invalid reasons. All assignments must be delivered by the student in person to the lecturer concerned. No other lecturer is allowed to accept students’ assignments. All tests/examinations are compulsory. 2 R01 – 061212 All Rights Reserved No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology 4.0 Students must sit the test/examination on the notified date. Students are expected to familiarise themselves with the test/examination timetable. Students who miss a test/examination will not be allowed to pass. Any scheduling of tutorials, both during or after lecture hours, is TOTALLY the responsibility of each student. Appointments are to be proposed, arranged, confirmed, and kept, by each student. Failure to do so in a professional manner may result in penalty of grades. Tutorials WITHOUT appointments will also NOT be entertained. Note that every assignment is given an ample time frame for completion. This, together with advanced information pertaining deadlines gives you NO EXCUSE not to submit assignments on time. GRADES All modules and assessable projects will be graded according to the following system. With respect to those units that are designated 'Approved for Pass/Fail' the grade will be either PA or F: 80 – 100 Grade A Numeric Grade 4.00 75 – 79 A- 3.67 70 – 74 B+ 3.33 65 – 69 B 3.00 60 – 64 B- 2.67 55 – 59 C+ 2.33 50 – 54 C 2.00 45 – 49 C- 1.67 40 – 44 D 1.00 0 – 39 F Pass0.00 EXP Description Pass with Distinction Pass with Merit Pass Fail Exempted PX Pass after extra work is given and passed X Ineligible for assessment due to unsatisfactory attendance D Deferred W Withdraw DNA Did Not Attend Module DNC Did Not Complete Module 3 R01 – 061212 All Rights Reserved No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology 5.0 PLAGIARISM, COPYRIGHT, PATENTS, OWNERSHIP OF PROJECT, THESES & WORKS WORK: STUDENT MAJOR See LIMKOKWING, HIGH FLYERS HANDOUT, Page 10. 6.0 MODULE INTRODUCTION This is an introductory module in which students obtain very basic knowledge on subjects related to financial management including financial markets, interest rates, return and risk in investments, bond and stock valuation, cost of capital, and capital budgeting. Students are expected to attain a clear and basic understanding of the essentials of financial decision making. Emphasis is laid on the factors to be considered on cash flow estimation and the mechanics of discounting those cash flows in valuing certain financial assets or projects, before choosing alternatives or arriving at a feasible decision. MODULE AIMS AND OBJECTIVES Upon the completion of this module, students will: Be able to develop an understanding of both theory and practice in finance Be able to provide students with practices on evaluating certain financial assets and simple projects. Be able to deal with the fundamentals of finance and its effects on business decisionmaking. LEARNING OUTCOME Upon the completion of the module, Students should be able to demonstrate: 9.0 Thorough understanding of the financial environment, including equity and debt markets, financial institutions, and interest rates. Able to grasp the concept of the time value of money including present value and future value analyses of annuities and uneven cash-flows over time. Able to compute bond and stock values including coupon rates, coupon payments, yields, risk, bond ratings, price discounts, and premiums. Able to grasp the concept of a business’ cost of capital and the sources for small and large firms. Able to assess basic projects by applying capital budgeting for evaluation of long-term fixed asset investments including both independent and mutually exclusive decisions. SPECIFIC GENERIC LEARNING SKILLS Upon the completion of this module, students should be able to identify the right investment opportunities and be able to make the risk-return assessments. 4 R01 – 061212 All Rights Reserved No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology UNIT SYLLABUS + LECTURE OUTLINE: Week: LECTURE 1: Lecture Synopsis: 1 AN OVERVIEW OF FINANCIAL MANAGEMENT Goals of the firm, legal forms of business organisation, principles that form financial management, finance and multinational firms. Tutorial: Week: LECTURE 2: Lecture Synopsis: Tutorial: 2 UNDERSTANDING FINANCIAL STATEMENTS AND CASH FLOWS Income statement, balance sheet, cash flows. Week: LECTURE 3: Lecture Synopsis: 3 RATIO ANALYSIS Purpose of financial analysis, measuring key financial relationships, limitations of financial ratios Tutorial: Week: LECTURE 4: Lecture Synopsis: Tutorial: 4 TIME VALUE OF MONEY CONCEPTS Week: LECTURE 5: Lecture Synopsis: Tutorial: 5 TIME VALUE OF MONEY CONCEPTS Week: 6 . Present Value & Future Value concepts, Investment Decision Making in Practice Present Value & Future Value concepts, Investment Decision Making in Practice MID TERM BREAK Week: 7 Week: LECTURE 6: 8 BOND VALUATION Lecture synopsis: Expected return, measurement of risk and return, risk and diversification, investors required rate of return. Tutorial: Week: LECTURE 7: Lecture synopsis: Tutorial: Week: LECTURE 8: Lecture Synopsis: MID-TERM EXAM 9 BOND VALUATION Expected return, measurement of risk and return, risk and diversification, investors required rate of return. 10 CAPITAL BUDGETING CONCEPTS Finding profitable projects, capital budgeting decision criteria, capital rationing, ethics in capital budgeting, cash flows in capital budgeting Tutorial: Week: 11 REVISION 5 R01 – 061212 All Rights Reserved No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology LECTURE 9: Lecture Synopsis: Week: 12 REVISION Week: 13 FINAL EXAMINATION WEEK 11.0 ESSENTIAL TEXT Arthur J. Keown, John d. Martin, J, William Petty, Foundations of Finance, 7th edition, 2010. 11.1 ADDITIONAL TEXT FOR REFERENCE Brigham & Houston, Fundamentals of Financial Management, 10th Edition, Thomson, 2007 Brigham & Ehrhardt, Financial Management, Theory & Practice, 11th Edition, South-Western, 2005 Moyer, McGuigan & Rao, Fundamentals of Contemporary Financial Management, 2nd Edition, 2007 12.0 ASSESSMENT SCHEDULE Assessment Description Issue Date Due Date % Individual Assignment Week 8 10% Group Assignment Week 11 30% Mid-Term Exam Week 7 20% Final Exam Week 13 40% Total 100% 13.0 ASSESSMENT CRITERIA Process of grading and criteria used to determine the grades, passes and high distinctions. 14.0 SPECIFIC CRITERIA Each assignment will be handed out with the project brief and will vary, depending on the teaching and learning objectives of the specific assignment. Each student will receive a completed assessment sheet back with their marks, thereby giving student feedback on each set criterion and the project as a whole. Marks for each project will be posted on the Bulletin Board with student number within 2 weeks of hand-in date. 6 R01 – 061212 All Rights Reserved No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology 7 R01 – 061212 All Rights Reserved No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology