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College of Business and Finance

The MBA Program


Financial Management (FINC 501) Course Outline, Fall 2015
Instructor: Dr. Wajeeh Elali Email: welali@ahlia.edu.bh
Class: Wednesday 18:00-20:30; Class Room: #12
Office:2F Gosi Complex Office Hours: by appointment Tel: 1731 0013 - X 105
Secretary: Ms. Shaima AlKhozaie Tel: 1731 0013 X 122
E-mail: sabbas@ahlia.edu.bh
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COURSE DESCRIPTION and OBJECTIVES:

This course is designed to give MBA students a solid understanding of the concepts and
techniques used in modern financial management. In this course, students are required to
master skills of how to conceptually identify and numerically solve financial problems
related to business decisions in both hypothetical and realistic contexts. The course's
pedagogy is comprised of lecture, case analysis & debate, videos, student presentations,
and class discussion of important developments in financial markets and business
practices as reflected in the financial press and other business publications. The core
lecture topics include time value of money and its applications in stock and bond pricing,
financial risk and its quantification, capital budgeting, estimating discount rates,
business valuation, and capital structure.
REQUIRED TEXT(s):

1) Gitman, Zutter, Elali, and Al-Roubaie, Principles of Financial Management, Pearson


2013.
2) Course Package: A set of readings including some articles, cases, past exams,
discussion papers, etc. will be posted on Ahlia University learning Management
System (Moodle) to enhance the teaching & learning experience at Ahlia University.
Supplementary Readings:
1) Berk & DeMarzo, Corporate Finance, Pearson International Edition (2 rd Edition),
Boston, 2011.
2) Elali, Wajeeh and Trainor, Therese: Advance Corporate Finance: A Practical Approach,
Pearson, Toronto, 2009. (ISBN:13-978-0-321-49407-8)

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3) Elali, Wajeeh and Trainor, Therese: Corporate Finance: A Problem Solving Approach,
2nd edition, Pearson Custom Publishing, 2007. (ISBN: 0-536-29804-1)
A financial calculator is strongly recommended for the class. Many of the exam problems
involve complex arithmetic and financial calculations--and a financial calculator is
necessary to solve them. [Note: You are responsible for learning how to operate your
financial calculator.]
Knowledge is a treasure, but practice is the key to it Thomas Fuller, English Author
EVALUATION:
"Alas, the road to success is always under repair"
"It takes money to make money"

--Anonymous

Students are responsible for the preparation and presentation of Case studies and
submitting reports.
Examinations will draw on all the material presented in the text(s), course package,
handouts, and lectures.
There will be a midterm examination and a final Examination. Both will be closed
book, but you are allowed to bring one page (both sides) of formulas or other written
material that you deem appropriate.
There will be no make-ups or extensions for the exam and any assignment missed due
to absenteeism.
If there is a valid reason for missing the first exam, the grade for it will be based
upon the marks scored by the student on the second (final) exam.
If you do not have a valid excuse for missing the exam, it will count as zero.
The rules customarily followed by the university will govern any absence from the
final exam.
The final grade for the course will be evaluated on the following basis:
Summery of Tasks
Marks
Key Due/Dates
Individual Class Participation
5%
Assignments and Case Analysis
25%
TBA
Test I & Test II
30%
TBA
Final Exam (Comprehensive)
40%
TBA
Total
100%
Please note the following regarding evaluation:
The final course grade will be based upon and not strictly calculated according to the
above weighting scheme. In other words, the instructor may use discretion and
judgement in assigning the final course grades to best reflect the performance.

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PREPARATION AND CLASSROOM PEDAGOGICAL APPROACH:

Classes will be focused on participatory discussion and the presentation of case


studies. The emphasis will be on the development of business communication skills
and the use of the pertinent financial tools and technology. Students are expected to
read the chapter(s) in advance to make an intellectual discussion in the class.
One of the important components of any course in corporate finance is understanding
the extent to which theoretical and practical considerations interact in reality.
Towards this end, cases will play an important part of this course. A significant
percentage of class time will be devoted to discussion of assigned cases.
The presentation of case studies is designed to enhance both business communication
skills and allow for the application of financial concepts and technology.
Students are expected to work in groups of three or four and each group is expected to
hand in FIVE of the assigned cases.
Each group will be assigned dates when it will present a given case(s).
All group members must be in attendance when the assigned group presents its case.
Any absentee will lead to a failing mark for the missing individual(s).
These groups will meet regularly outside class to study and discuss upcoming cases.
In preparing a case for class discussion, the group must decide what the issues are,
make the appropriate numerical calculations, as well as identify and assess the strength
of the arguments and reach a conclusion.
For each presentation, there will be a designated spokesperson(s) for the group, who
will present the group's analysis and recommendations; although, all members of the
group are expected to take part in the presentation.
The presentation itself must be business-like and professional, which means audiovisual aids etc. must be utilized.
The presentations will be evaluated in terms of content, delivery, persuasiveness,
professionalism, and with regard to how the group responds to questions raised by the
audience.
All class members must be present each class. As all will be graded on participation, it
is of utmost importance that all those present take part in the debates. (Note: merely
being present does not constitute class participation!!)

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Since anyone may be asked, at any time, to comment on the issues pertaining to the
presentation, it is imperative that all students read the case and identify the problems
before the class and be ready to discuss them (whether a part of the assigned group or
not).
All students must wear a nametag or place a nameplate in front in all classes.
CLASS DECORUM:
The basic principle is to be considerate to others. Telephones and pagers must be
switched off during class periods.
INSTRUCTOR:

Professor Wajeeh Elali (PhD, MA, PhD, MBA, BCom) joined Ahlia university in Bahrain
after more than a decade teaching at McGill University, Canada. He has also taught
various corporate finance and business economics courses at Northeastern University
(USA), California State Polytechnic University (USA), and Concordia University
(Canada).
From 1981 to 1982 he was a Visiting Scholar at Harvard Business School. He has
attended and presented numerous papers at international conferences and professional
meetings in North America, Europe, the Middle East, Africa, and south Asia. His work
has been published or accepted for publication in various refereed journals such as the
Thunderbird International Business Review (USA), the International Journal of Business
Governance and Ethics (UK), Financial Practice & Education (USA), the International
Journal of Commerce & Management (USA), Economia Internazionale (Italy), Arab
Studies Quarterly (USA), and the Journal of Accounting & Business Research (Canada).
His current research focuses on corporate governance, business valuation, and
international debt problems. He is also the author of seven books in the field of corporate
finance and productivity.
Throughout his career, he has received a number of awards for excellence in teaching
and research. In 2000, he received the Distinguished Teaching Award from McGills
Centre for Continuing Education. The award was given for outstanding graduate and

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undergraduate teaching. Among his prestigious recognitions, he received the
Distinguished Teaching Award from McGills Desautels Faculty of Management in 2003.
He is also the recipient of the 1995 Distinguished Teaching Award from Concordias John
Molson School of Business.
TENTATIVE CLASS SCHEDULE

Date
1st week

2nd week
rd

3 week

Time Value of Money

4th week
th

5 week
6th week

th

7 week
8th week
th

9 week

10th week
11th week

Topic(s)
Welcome to the World of Finance
Class Expectations and Evaluation
Introduction to Corporate Finance
Time Value of Money
Due Date: Case I (Berk & DeMarzo,
Ch4, pp. 126-127)
Capital Budgeting Techniques

Capital Budgeting Cash Flows

Readings
Chapter 1
Chapter 4
Chapter 4

Chapter 8
Chapter 9

Test I
(Chapters 1,4,&8)
Due Date: Case II (Berk & DeMarzo,
Ch 7, pp. 213-214 )
Capital Budgeting Cash Flows
Interest Rate and Bond Valuation

Stock Valuation

Due Date: Case III (Berk & DeMarzo,


Ch 8, pp. 245-246)
Stock Valuing
The Cost of Capital
Test II
(Chapters 8&9)
Risk & Return
Due Date: Case IV (Berk & DeMarzo,
Ch 9, pp.288-289)

Chapter 9
Chapter 6
Chapter 7

Chapter 7
Chapter 11

Chapter 10

12th week
13th week
14th & 15th week
TBA

Chapter 10
Risk & Return
Due Date: Case V (Berk & DeMarzo,

Ch 10, pp. 328-329)


Unfinished Business & General Review
Final Exam
MISCELLANEOUS:

Index Cards:
Index cards are critical towards the allocation of participation marks. Please attach a
photograph and print the following information: Name; Phone # where you may be
reached; E-mail address; Previous finance courses; Work experience, Career objectives,
What do you expect and want to learn from this course, Other relevant information (if
applicable).
Departmental Policies:

Formal written complaints by group members regarding the non-participation of


another member could result in that students being removed from the group and
an incomplete grade assigned to that person.

Ahlia University values academic integrity. Therefore, all students must


understand the meaning and consequences of cheating, plagiarism and
other academic offences under the Code of Student Conduct and Disciplinary
Procedures (see www.ahliauniversity.org/integrity for more information).

In conclusion, I wish each of you the best of luck for this semester and want you to do well.
In this regard, if I can be of any assistance, do not hesitate to let me know.

Appendix
INFORMATION CARD
(Student Profile)
Financial Management (FINC 501)
Fall 2015
Name:________________________________
ID No.:_______________________________
Email:________________________________
Phone: (____ )________-_________________
Previous Finance Courses:

Previous Concentration (Major) & Degrees:

Professional Experience:

Career Objectives:

Please affix
your picture
in this area

What do you expect and want to learn from this course?


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