Oman College of Management & Technology
Department of Administrative and Financial Sciences
COURSE SYLLABUS
Course Code & Title
Semester
Instructor
Class Schedule
Office Hours
Web Site
E-mail
303202 Principles of Finance- II
Spring 2015 - 2016
Syed Ashfaq
Sunday, Tuesday, Wednesday 10:30 –
11:30
Sunday, Tuesday 09:30 – 10:30
www.omancollege.edu.om/syed
syed.ahmed@omancollege.edu.om
Teaching Methods:
The class sessions will be based on the following teaching and learning activities:  Lectures
 Discussion based on numerical based topics.
 Assignments (Home work)
Course Description:
This course provides students with essential concepts and techniques of cost of
capital, cost of common stock, and cost of preferred stock. Understanding
factors effecting dividend policy of company. Also this course provides essential
concepts and techniques of working capital management; working capital
policy, cash and marketable securities, credit management, inventory
management, and short-term financing
Learning Outcomes:
Upon successful completion of this course, students will have the Knowledge and
ability to:
 Understand each component of weighted average cost of the capital
(WACC).
 Understand the working capital management
 Understand the difference between the short term financing and long term
financing
 Develop analytical ability in comparison of different policies of dividend applied
by firms.
Syllabus
Page 1 of 3
Principles of Finance - II
Course Time Table:
Weeks
1
2
3
CHAPTER 01
Capital Budgeting Cash
flows
The Capital Budgeting Decision Process
, Relevant Cash Flows
Finding the Initial Investment, Finding the Operating Cash Inflows
Finding the Terminal Cash Flow, Summarizing the Relevant Cash Flows
CHAPTER 02
Capital Budgeting Techniques
Overview of Capital Budgeting Techniques
4
5
6
Payback Period, Net Present Value, Internal Rate of Rate
Comparing NPV and IRR Techniques and IRR Techniques
First Exam (Covering Weeks 1- 6 )
CHAPTER 03
Working Capital Management
Net Working Capital Fundamentals, Cash Conversion Cycle
7
8
9
Inventory Management, Accounts Receivables Management
Management of Receipts and Disbursements
CHAPTER 04
Current Liabilities Management
Spontaneous Liabilities
10
11
12
Unsecured Sources of short-term loans, Secured Sources of
short-term loans.
Second Exam (Covering Weeks 7- 12 )
CHAPTER 05
The Cost of Capital
An Overview of the Cost of Capital
The Cost of Long-Term Debt , Cost of Preferred Stock and Common
Stock
The Weighted Average Cost of Capital, Marginal Cost and Investment
13
14
15
16
Decision
Revision
Second Exam (Covering Whole Syllabus)
Text Book:
Title: Principles of Managerial Finance.
Authors: Lawrence J. Gitman
Edition: 11th edition.
Performance Evaluation:
The grade will be based upon the following:
First Exam
Second Exam
Class Participation & Activity
Final Project (Exam)
Syllabus
20%
20%
10%
50%
Page 2 of 3
Principles of Finance - II
Student Responsibility:
 Mobile phones must be turned off during class time.
 Students are expected to participate in class discussion and critiques. Failure to
do so will result in grade reduction.
 Students are expected to follow OCMT’s standardized attendance policy.
Lecture attendance is mandatory. Students are allowed maximally of 15%
absentia of the total module hours.
 Students are required to work on projects in and outside of class, and must
complete all assignments.
 Meeting all deadlines and complete all assignments, (Late papers will not be
accepted).
 Coming on time and staying till class is over.
Syllabus
Page 3 of 3
Principles of Finance - II