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SCHOOL OF ECONOMICS, FINANCE & BANKING

UUM COLLEGE OF BUSINESS


No
.

Information on Course

1. Course Name :

FINANCIAL MANAGEMENT 11

2. Course Code: BWFF2023


3. Name(s) of Academic Staff: Dr FAIZAH ISMAIL
En. KHARUL AZHAR RAMLI
En. KHAIRUL ZHARIFF (TUTORIAL)
En. MUHAMMAD RADZI REJAB (TUTORIAL)
Pn. MAHFUZAH SALIM (TUTORIAL)

4. Rationale for the inclusion of the course in the programme:


This is a core courses offered for B. Fin students.
5. Semester/Year Offered:

3/2

6. Total Student Learning Time (SLT)


L = Lecture

Face to face
L

28

14

SL

TLT

71.6

118.4

T = Tutorial
P = Practical
O = Others
9. Credit Value: 3

10. Pre-requisite (if any):


FINANCIAL MANAGEMENT 1

11. Objective(s) of Course :


Students are expected to
1.

understand the foundation of key concepts and theories of financial


management as a whole.

2.

acquire knowledge and skills necessary to solve different types of


problems in finance.

3.

develop investment or financing analysis, planning and forecasting


on business and non-business organization.

12. Course Learning Outcomes:


Upon completion of the course, students are able to
1. identify the concepts and theories related to financial management.
(C1, A1,P1)
2. describe decision making techniques discussed in this course.
(C1,A1, P1)
3. apply financial concepts, tools and techniques to solve appropriate
hypothetical and real world problems. (C3, A3, P1).
4. evaluate investment decisions in pursuit of maximizing shareholders
wealth. (C4, A3, P2)
5. analyze valuation on securities i.e. shares and bonds. (C4, A3, P1)

13. Transferable Skills:


Communication, Critical Thinking and Problems Solving, Team Work and
Leadership.

14. Teaching-learning and assessment strategy:


Mixed method between teacher-centred and student-centred.

15. Synopsis:
This is the follow-up course of Financial Management I, where the aim is to
enhance students understanding of the investment decision-making process and the
long term financing process. It reviews the concept of time value of money as a
preparation so that they can apply the concept in other topics such as securities
valuation, capital budgeting and cost of capital. In addition, leverage and capital
2

structure, dividend policy and international financial management will also be


discussed.

16. Mode of Delivery:


Lectures, discussions and presentation.

17. Assessment Methods and Types:


Coursework (50%)
Final exam (50%)

18. Mapping of the course/module to the Programme Aims


Course Learning Outcomes

Programme Aims

The aims of the Bachelor of Finance


(Honours) programme are to produce
competent
and
knowledgable
graduants inthe area of financi in
accordance with the human capital
needsof the domestic and financial
industry.

22. Mapping of the course/module to the Programme Learning Outcomes

Course Learning Outcomes


Programme Learning Outcomes

Identifying and explaining the


concepts and theories related to
financial
management,
financial
markets, investment, international
finance, personal finance and other
areas of finance.
Applying financial concepts, tools and
techniques in solving real world
financial
problems
faced
by
3

companies in the pursuit


maximizing shareholders wealth.

of

Advising the industries and capital


market players on issues related to
finance.

Practicing
and
carrying
out
professional ethical code of conduct
within the financial discipline.

Communicating effectively orally and


in writing.

Working as a leader or a team member


in multi disciplinary teams and
cultures.

Evaluating and making financing and


investment decisions at national and
international level.

Applying current state of the art


information technology solutions in
day-to-day operations whist pursuing
knowledge at a higher level in finance
as well as in other disciplines.

Displaying entrepreneurial skills and


capabilities relevant to finance.

34. Content outline of the course/module and the SLT per topic

Topic

1.0

TIME VALUE OF MONEY


REVIEWS

Learning
Outcome
s

1,3

An Overview on Financial
Management II.
The Relationship Between
Financial Management I and
Financial Management II.
The Objectives of Learning
Financial Management II.
Present Value and Future
4

Face to Face

SL

TLT

P/O

Value

Single Amount
Annuities
Perpetuities
Uneven Cash
Flows

2,5

2,5

12

2.0 BASIC OF VALUATION AND


BOND VALUATION
Valuation Concepts
Intrinsic Value
Characteristics of Bonds
Types of Bonds
Bond Valuation
Yield to Maturity
Important Factors in
Bond Relationships

3.0

STOCK VALUATION

Fund Raising in the Capital


Market
Features of Preferred Stock
Preferred Stock Valuation
Preferred Stockholders
Expected Rate of Return
Characteristics of Common
Stock
Common Stock Valuation
Single Holding
Period
Constant Growth
Dividend Model
Supernormal
Growth
Common Stockholders
Expected Rate of Return
5

12

4.0

COST OF CAPITAL

12

2,3,4

12

2,3,4

12

Introduction
to
capital
budgeting
Payback period
Discounted payback period
Net present value (NPV)
Profitability index (PI)
Internal rate of return (IRR)
Complications in capital
Budgeting: Capital rationing
and mutually exclusive
projects
Time disparity
Size disparity
Unequal lives

6.0 CASH FLOWS IN CAPITAL


BUDGETING

Definition and of costs of


capitalconcepts
Determining individual cost
of capital
Bond
Preferred Stocks
Common Stocks
Weighted average cost of
capital (WACC)
Weighted marginal cost of
capital (WMCC)
Making investment decision

5.0 TECHNIQUES IN CAPITAL


BUDGETING

1,3,4

Relevant cash flow


Initial outlay
Annual cash flow
Terminal cash flow
6

Replacement and expansion


of project
Decision making in capital
budgeting

7.0 LEVERAGE AND CAPITAL


STRUCTURE

8.1

2,3,4

12

1,2,3

28

14

42

84

Face to Face

SL

TLT

58.4 102.2

Business and financial


risk
Break-even analysis
Operating leverage
Financial leverage
Combined leverage
Optimal capital structure
EBIT- EPS analysis

DIVIDEND POLICY

Dividend payment versus


profit retention
Does dividend policy
affect stock prices
The dividend decision in
practice.
Stock dividend and stock
splits.
Stock repurchases

Assessment
Course work

50%

43.8

Final examination

50%

3
Total Notional Hours

46.8

13.2

16.2

71.6 118.4

Credit Hours

3.0

References:

Main references :
Gitman, L.J., and Zutter, C.J. (2012). Principles of Managerial Finance (13th ed.). Boston:
Prentice Hall, Inc.
Keown, A. J., Martin, J. D., Petty, J. W., and Scott, D. F., Jr. (2005). Financial
management: Principles and applications (10th ed.). New Jersey: Prentice Hall, Inc.
Ross, S., Westerfield, R., Jordan, B., Mazlan, R., Abidin, F., Zainudin, N., Ismail, F.,
Zainudin, Z., & Ahmad, N. (2007). Financial management fundamentals in Malaysia (1st
ed.). Kuala Lumpur: McGraw-Hill.

Grading Points
Numerical Marks
90 100
80 -89
75 79
70 74
65 69
60 64
55 59
50 54
45 49
40 44
35 39
00 34
0.00

Alphabet Grades
4.00
4.00
3.67
3.33
3.00
2.67
2.33
2.00
1.67
1.33
1.00
0.00
0.00

Name : Kharul Azhar ramli


Email
:kazhar@uum.edu.my
8

A+
A
AB+
B
BC+
C
CD+
D
F
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Extn No. : 6864


Room No. : 022/COB Main Building
Consultation hours : Tuesday : 10.00 12.00
Thursday:9.00am-11.00am