Universiti Teknologi MARA

Kampus Sarawak
FIN420 : Financial Management
Scheme Of Work

Chapter Topics
1

4
5
6
7
8
9

10

11

13

Introduction to Financial Management

i.
Financial markets and business organization
ii.
Goals of a firm
iii.
Functions of a Financial Manager
iv.
Risks and Return Relationship
Understanding Financial Statements
i. Balance Sheet
ii. Income Statement
iii. Sources and Uses of Fund
iv. Cash Flow
Financial Ratios and Analysis
i.
Types of Financial Ratios
ii.
Trend Analysis
iii.
Limitations
Financial forecasting and planning
i.
Cash Budget
ii.
Methods of forecasting : Percentage of Sales Methods.
Working Capital Management
i.
Definition
ii.
Approaches
Cash and Marketable Securities Management
i.
Objective and reasons
ii.
Types of Marketable Securities
Accounts Receivable Management
i.
Objectives and types
ii.
Techniques - EOQ
Short Term Financing
i.
Types unsecured and Secured
ii.
Cost Of Financing
Long Term Financing
i.
Types : Bonds, Preferred Shares& Common Shares
ii.
Characteristics : Bonds, Preferred Shares& Common Shares
iii.
Advantages & Disadvantages Of these instruments
iv.
Cost of Financing
Leverage
i.
Operating Leverage
ii.
Financial Leverage
iii.
Total Leverage
Mathematics Of Finance
i.
Time Value of Money
ii.
Present Value and Future Value
Capital Budgeting
i.
Definitions and Importance Of Capital Budgeting
ii.
Types Of Capital Investment
iii.
Capital Budgeting Technique : Payback, PI, NPV & IRR

Hours
2

6
4
2
4
4
6
6

Text Books
1. Introduction to Finance
By Lawrence J. Gitman and Jeff Madura, Addison Wesley,
Longman, 2001
References
1. Foundation Of Finance
The logic and practice of Financial Management
By Keown, Petty, Scott Martin
Prentice Hall, 1999
2. Practical Financial Management
2nd Edition,
By William R. Lasher
South-Western, Thomson Learning, 2000
Assessment
Test 1
Test 2
Quiz/Assignment
Final Exam
Total

15%
15%
20%
50%
100%

Passing Mark

50%(Grade C)