Introduction to Course

This course introduces Financial Management and its application in practice. The course focuses on the critical elements of financial decision-making for organisations, including investment decisions, sources of finance, management of working capital and performance appraisal. The objectives are to: • Provide the learner with an in-depth understanding of the link between company decision-making and the operation of capital markets • Ensure the learner understands and appreciates the strong linkages between finance and globalisation • Demonstrate the importance of working capital management and the tools to manage it • Help the learner to explore the financial environment in which firms and managers must operate

Course Objectives:

This is an introductory course to the discipline of finance. It is introduces the students with basic concepts and principles of managerial finance and shows how finance is life blood for any successful business.

Learning Outcomes:

Financial Management discusses the role that financial manager play in businesses and the financial market environment in which firms operate. It argues that the goal of managers should be to maximize the value of the firm and by doing so maximize the wealth of its owners. The main objective of this course is to give student an understanding of financial environment and financial instruments and basis of evaluation of business entity.

On successful completion of this course, the learner will be able to:

Describe the financial environment within which organisations must operate.  Critically evaluate the financial objectives of various types of organisations and the respective requirements of stakeholders. Discuss the function of capital markets. Explain alternative sources of finance and investment opportunities and their suitability in particular circumstances. Assess the factors affecting investment decisions and opportunities presented to an organization.  Select and apply techniques in managing working capital. Analyse a company’s performance and make appropriate recommendations.

Course Pre-Requisite

Course in Financial Accounting and Decision Making

Text Book

Principles of Managerial Finance

Lawrence J. Gitman, Latest Edition

Date and Time of Class

BBA 5th  Regular (2018-22) Wednesday: 11:00 to 12:30P.M, Thursday: 09:00 to 10:30 A.M

BBA 5th Self Support (2018-22) Wednesday 2:00 to 3:30 PM. Thursday: 2:00 to 3:30 P.M.

Weekly Lesson Plan

 

 

 

Week

Topics and Readings

Page No. From Text Book

 

1

Introduction to Managerial Finance: The role of Managerial Finance, The Financial Market Environment

4-54

2

Financial Tools: Financial statements and Ratio Analysis

55-110

3

Financial Tools: Cash Flow and Financial Planning

111-157

4

Financial Tools: Time Value of Money

159-180

5

Financial Tools: Time Value of Money

181-215

6

Valuation of Securities: Interest Rates and Bond Valuation

219-263

7

Valuation of Securities: Stock Valuation

264-290

8

Valuation of Securities: Stock Valuation

291-304

Mid Term Exam

 

9

Risk and the Required Rate of Return: Risk and Return

307-335

10

Risk and the Required Rate of Return: Risk and Return

336-355

11

Risk and the Required Rate of Return: The Cost of Capital

358-368

12

Risk and the Required Rate of Return: The Cost of Capital

Guest Speaker Session

369-385

13

Long term Investment Decision: CapitalS Budgeting Technique

388-400

14

Long term Investment Decision: Capital Budgeting Techniques

400-4125

15

Long term Investment Decision: Capital Budgeting Cash Flows

426-440

16

Long term Investment Decision: Capital Budgeting Cash Flows

441-461

Final Term Exam

 

 

System of Evaluation

RESEARCH PROJECT /PRACTICALS /LABS /ASSIGNMENTS

Semester Project on investment in Pakistan Stock Exchange by analyzing and constructing Efficient Portfolio.

 

  ASSESSMENT CRITERIA

The module is assessed by the group assignments and individual class presentation of relevant topics (20%), and a 3 hours closed-book examination (80%). 

Individual Class Presentations/Projects*

Group Project                                                       (10%)

Assignments                                                         (5%)

Class Quiz/Case Studies                                      (5%)

20%

Mid Term Examination  (1 hour)

30%

Final Examination (2 hours)

50%

 

Course Material