IICS/IICP/ICS/IICKL

03/06/2014

COMMON DIPLOMA
INTI INTERNATIONAL COLLEGE SUBANG

COURSE STRUCTURE
COURSE:

FIN2102 FINANCIAL MANAGEMENT (4 cr)

PREREQUISITE:
None
COURSE DESCRIPTION:
The focus of this subject is on corporate finance decisions, which must be taken by management in order to
maximize the shareholder value. It will introduce students to the main theory and practice of the financing of
companies, the allocation and management of financial resources within a company and the rewarding of the
providers of a companys financing. Topics covered will include the financial environment, valuation of assets,
shares and companies, sources of finance, capital structure, working capital management, investment risk,
portfolio theory and the capital asset pricing model.
LEARNING OBJECTIVES:
This course aims to develop the students ability in:
1. Using financial analysis/calculation techniques as an aid in providing financial information to assist in
making business decisions.
LEARNING OUTCOMES:
Successful students will be able to:-.
1.
Understand and explain the role of finance in business
2.
Comprehend the ultimate goal of financial management
3.
Use and apply business mathematics in loans and in estimating the effects of time value on money
4.
Understand the concept of capital, and calculate the costs of using capital
5.
Comprehend and relate the concept of cost of capital to capital budgeting
6.
Demonstrate application and interpretation of capital budgeting techniques
7.
Understand the concepts of portfolio management to achieve diversification
8.
Understand and explain the relationship between capital markets and corporations, and how market
efficiency affects them
9.
Apply business mathematics in evaluating credit policies
10.
Understand and apply methods for costing in inventory management
COURSE FORMAT:
Total Student Learning Time (SLT) (L = Lecture; T = Tutorial; P = Practical; O = Others) :
Guided & Independent Learning
Face to Face
Total Student Learning Time (hr)
(hr)
L
T
P O
28

14

104

148

STUDENT EVALUATION:
Test 1: 15%, Test 2: 15%, Group Assignment(s): 30%, Final Examination: 40%
FINAL EXAMINATION FORMAT:
Duration: 2 hours
Section A: Answer THREE compulsory questions (75%)
Section B: Answer any ONE out of TWO questions (25%)
GRADING SCALE:
A+ (90-100), A (80-89), A- (75-79), B+ (70-74), B (65-69), B- (60-64), C+ (55-59), C (50-54), C- (45-49),
D (40-44), F (0-39). Resit Pass, RP (50-100), Resit Fail, RF (0-49)

DIB: FIN2102 FINANCIAL MANAGEMENT

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IICS/IICP/ICS/IICKL

03/06/2014

BASIC TEXT(S):
1. Block, Stanley; Hirt, Geoffrey, Foundations of Financial Management, 15 th Edition, McGraw Hill
Singapore, 2014.
2. Ross, Stephen; Westerfield, Randolph; Jordan, Bradford, Fundamentals of Corporate Finance Standard
Edition, 10th Edition, McGraw Hill Singapore, 2013
REFERENCES:
1. Arnold, G., Corporate Financial Management, 5th ed., Upper Saddle River, Prentice Hall, 2013
2. McLaney E.J. Business Finance: Theory and Practice, 9th ed., London: FT/Prentice Hall, 2011
3. Brealey R.A. and Myers S.C., Principles of Corporate Finance, 11th Ed., New York, McGraw-Hill
International, 2014.
4. Darmodaran, A., Corporate Finance: Theory and Practice, 2 nd edition, New York, John Wiley and Sons,
2000.
CLASS SYLLABUS:
Lecture(s)
Topics
12
Introduction to Finance
Finance objectives, the roles of financial management in todays world.
34
The Role of Finance
The financial resources and ultimate goal of financial management, Profit vs shareholder
wealth maximisation
58
Time Value of Money
Present/Future value, annuities, loan amortization
9 12
Bonds and Stock Valuation
Dividend discount model, yield-to-maturity calculation, main role of stock exchange, efficient
market hypothesis
13 14
Cost of Capital
Key definitions and concepts. Determining individual cost of capital and WACC
15 18
Capital Budgeting
Capital Budgeting techniques Payback, Accounting rate of return, NPV and IRR
19 22
Introduction to Portfolio Management, Risk, Rates of Return and CAPM
Risk - systematic and unsystematic risks, Diversification, Return and risk premium, Risk free
return and Capital Asset Pricing Model or CAPM.
23 26
Working Capital Management
Inventory management - stock control, stock level, EOQ, JIT and Liquidity balancing.
Debtor management, debt collection - friendly reminders, screening of potential debtors, early
payment discounts etc-Principle of current assets investment and Asset conversion cycle.
27 28
Revisions
Final Examination

DIB: FIN2102 FINANCIAL MANAGEMENT

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