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UNIVERSITI TEKNOLOGI MARA
Course Name (English) FINANCIAL MANAGEMENT
Course Code FIN420
MQF Credit 3
Course Description This course is designed to enable students to understand the concepts of finance. It covers financial ratios, financial statements, cash budget, time value of money, working capital management, sources of financing and capital budgeting.
Transferable Skills Reflective Learner
Teaching Methodologies Lectures, Discussion
CLO
CLO1 Develop current and future financial plans for corporations. (PLO1)
CLO2 Analyse corporation’s financial position and performance using financial tools in order to come out with effective short-term and long-term decision making. (PLO7)
CLO3 Apply the knowledge of financial planning in order to manage shareholders’ wealth in achieving the financial management goals. (PLO8)
Pre-Requisite Courses No course recommendations
Topics
1. 1. Introduction to financial management
1.1) 1.1 Financial markets and business organization
1.2) 1.2 Goals of a firm
1.3) 1.3 Functions of a financial manager
1.4) 1.4 Risks and return relationship
2. 2. Understanding Financial Statements
2.1) 2.1 Balance Sheet
2.2) 2.2 Income Statement
2.3) 2.3 Sources and Uses of Fund
2.4) 2.4 Cash Flow Statement
3. 3. Financial Ratios and Analysis
3.1) 3.1 Types of Financial ratios
3.2) 3.2 Trend Analysis
3.3) 3.3 Limitations
4. 4. Financial Forecasting and Planning
4.1) 4.1 Cash budget
4.2) 4.2 Methods of forecasting - % sales method
5. 5. Working Capital Management
5.1) 5.1 Definition
5.2) 5.2 Approaches
6. 6. Cash and Marketable Securities Management
6.1) 6.1 Objectives and reasons
6.2) 6.2 Types of marketable securities
7. 7. Accounts Receivable & Inventory Management
7.1) 7.1 Objectives and types
7.2) 7.2 Techniques – EOQ
8. 8. Short Term Financing
8.1) 8.1 Types – unsecured, secured
8.2) 8.2 Cost of financing
9. 9. Long Term Financing
9.1) 9.1 Types – bonds, preferred shares and common stock
9.2) 9.2 Characteristics of bonds, preferred shares and stock
9.3) 9.3 Advantages and disadvantages of these instruments
9.4) 9.4 Cost of Financing
10. 11. Capital Budgeting
10.1) 12.1 Definition and importance of capital budgeting
10.2) 12.2 Types of Capital Investment
10.3) 12.3 Capital Budgeting Techniques
10.4) 12.4 Payback Period
10.5) 12.5 Net Present Value
10.6) 12.6 Profitability Index
10.7) 12.7 Internal Rate of Return
11. 10. Mathematics of Finance
11.1) 10.1 Time Value of Money
11.2) 10.2 Present Value and Future Value
 
Assessment Breakdown%
Continuous Assessment100.00%
Details of Continuous Assessment
Assessment Type Assessment Description % of Total Mark CLO
Assignment Assignment 20% CLO2
Case Study Case Study 30% CLO1
Presentation Presentation 20% CLO3
Test Test 30% CLO1
Reading List
Recommended Text
  • Lewrence J. Gitman, Introduction to Finance, Ed., , Pearson
Reference Book Resources
  • William R. Kasher,, Practical Financial Management Latest Edition, Ed., , Thomson Learning, South Western [ISBN: ]
  • Keown, Petty, Scott Martin,, Financial Management: Principles and Applicat, Prentice Hall.
  • Brigham E.F., Houston J.F., Fundamental of Financial Management Latest Ed, Ed., , Harcourt Brace College Publisher [ISBN: ]
Article/Paper ListThis Course does not have any article/paper resources
Other ReferencesThis Course does not have any other resources