SYLLABUS & SAP

MM5007 Financial Management

YP55B

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
2017

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Table of Contents
1.

Mission of SBM ITB ............................................................................................................................... 3

2.

Course Description................................................................................................................................ 3

3.

Learning Goals and Objectives of Master of Business Administration ................................................. 4

4.

Learning Outcomes of Financial Management ..................................................................................... 5

5.

Reading Material................................................................................................................................... 5

6.

The Course Schedule/ Plan ................................................................................................................... 6

7.

Assessment Summary ......................................................................................................................... 10

8.

Grading Policy ..................................................................................................................................... 10

9.

Course Policy....................................................................................................................................... 10

10. Lecturer Profile ................................................................................................................................... 11

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1. Mission of SBM ITB

SBM ITB has mission as follows:
To educate students to be innovative leaders with an entrepreneurial mindset and to
develop and disseminate knowledge of business and management for the betterment of
business, government, and society

2. Course Description
MM 5007 Financial Management is a mandatory course for students enroll in MBA
Program. Lectures on Financial Management provide knowledge and practical
experiences in managing corporations.
Broadly speaking, Corporate Financial Management covers the knowledge on matters
of risk-and-return, as well as financial liquidity and profitability of the corporation. Both
subjects are keys for success in corporate management, namely so that the company is
capable of growing and developing adaptively towards the companys environment. In
studying Financial Management, one should also learn about the financial
circumstances where the corporation is, including the financial instruments and
institutions that could assist the corporation or company in obtaining the necessary
funds for operation or new investments for the growing company. The corporate
success is determined by its ability in making strategic financial decisions, through bank
loans, issuance of bonds or shares (common stock and preferred stock), as well as its
tactical financing decisions.
Students are expected to know and apply the ethical corporate finance decision making
in real business situations.
Therefore, the course will meet the Learning Goals of Master of Business of
Administration as follows:
1. LG 1: Integrative Thinking
2. LG 4: Ethical Responsibility
3. LG 6: Global awareness

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3. Learning Goals and Objectives of Master of Business

Administration
Master of Business Administration has learning goals and objectives as on Table 1 below.
Fourth column shows the LG/LO of study program attached to courses.
Table 1. Learning Goals and Objectives of Master of Business Administration
NO
1

LEARNING GOAL
LG 1: Integrative
Thinking

LG 2: Team work

LG 3:
Communication
Skills

LG 4: Ethical
Responsibility

LG 5: Leadership

LG 6: Global
awareness

LEARNING OBJECTIVES
1. Identify and analyze central problems of a business
case
2. Construct multiple perspectives that integrate
different factors or aspects, other related business
functions and relevant contextual information
3. Create recommendation based on the constructed
perspectives and the companys strategic objectives
1. Understand how to collaborate with others
2. Apply the concept of managing conflict to resolve
problem in small group learning environment
3. Demonstrate constructive feedback in small group
learning environment
1. Present information in an organized and concise
manner
2. Demonstrate skill to persuade others in persuasive
manners
3. Demonstrate listening skills
1. Recognize ethical issues in business context
2. Assess the impact of ethical issue toward various
stakeholders
3. Systematically analyze the pro and cons of any
decisions related to ethical issues
1. Demonstrate the propensity to take initiative
2. Bring influence toward other people in her/his team
3. Inspire and empower others by evaluating, analyzing,
and providing critics on how leadership behaviors and
characteristics affect employees and businesses
outcomes
4. Demonstrate an ability to manage change
1. Identify global issues that may affect the industry
(Global Intellectual Capital)
2. Develop understanding toward global cultural aspects
that affect business operations
3. Develop business recommendations based on
understanding about the global aspects

COURSE LG/LO
v
v
v

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4. Learning Outcomes of Financial Management

Learning outcomes of this course can be seen in Table 2 below.
Table 2. Learning Outcomes of Financial Management
NO
1

2
3
4

LEARNING OUTCOMES
Students will be able to understand corporate
finance policies such as:
- Investing
- Financing
- Payout policy
- Short term asset & liability management
Students will be able to apply different techniques in
corporate finance in order to maximize the firm value
Students will be able to analyze corporate finance
decision making in real world context

COURSE LG/LO

1.1

1.2
1.1, 1.3

Students will be able to evaluate alternative of

corporate finance decision making that will maximize
the firm value

1.2

Students will be able to recognize ethical issues in

corporate finance context

4.1

Students will be able to identify global issues that

may affect corporate finance decision making

6.1

5. Reading Material
A. Mandatory Material
Lawrence J, Gitman., Principles of Managerial Finance, Mc GrawnHill, Fourteenth Edition,
2014 (LJG)
B. Additional Materials
1. (RWJ), Modern Financial Management, Stephen A. Ross, Randolph W. Westerfield & Jeffrey
Jaffe, McGraw-Hill, Eighth Edition, 2009
2. (KMPS) Financial Management; Principles and Applications, Arthur J. Keown, John D.
Martin, J. William Petty & David F. Scott, Jr. Pearson Prentice Hall, Tenth Edition, 2005.
3. (BKM) Investments, Zvi Bodie, Alex Kane & Alan J. Marcus, McGraw-Hill, Sixth Edition, 2005.

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6. The Course Schedule/ Plan

Table 3 present the class activities that are required to achieve the learning objectives of
this course.
Table 3. Weekly Class Activities of Financial Management
Week/ Date/ Module
Week 1

Activities
Topic :
Introduction and Financial
Statements
Sub-topic/ Issue covered :
Introduction
Financial Market Environment
Financial Statements
Activity : Lecture

Other Activities

Watching Video on Agency Problem

Class Exercises E1-5,P1-2,P1-3,P1-4

Learning Outcome : 1, 5, 6

Reading/ References :
LJG Chapter 1 and Chapter 2
Case Financial Detective
Week 2

Week 3

Topic : Financial Statement

Analysis
Sub-topic/ Issue covered :
Financial Statements
Financial Ratios Analysis
Dupont Analysis
Activity :
Lecture and Class Discussion
Learning Outcome : 1, 2
Reading/ References :
LGJ Chapter 3
Financial Detective Case
Topic :
Krakatau Steel Case A and B class
discussion
Cash Flow and Financial Planning
Sub-topic/ Issue covered :
Cash Budget
Proforma Financial Statements

Financial Detective Case

Class Exercises 3-12,3-16,3-24, 3-25,
3-26
Home Work: Read and prepare
Krakatau Steel Case A and B for next
class

Quiz
Class Exercises 4-11,4-14,4-16,4-19
Home Work: Reading and Preparing
Developing Financial Insight Case
Discussion

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Week 4

Week 5

Activity :
Lecture and Class Discussion
Learning Outcome : 1, 2, 3
Reading/ References :
LGJ Chapter 4
Topic :
Time Value of Money
Sub-topic/ Issue covered :
Present Value & Future Value
Annuity
Application
Activity : Lecture and Class
Discussion
Learning Outcome : 1, 2
Reading/ References :
LGJ Ch.5
Case Developing Financial Insight

Problems will be assigned in class

Developing Financial Insight Case
discussion

Week 7

Topic :
Quiz
Interest Rates & Bond Valuation
Class Exercises:
Stock Valuation
6-20,6-22,6-23, 6-25
7-18,7-20,7-23
Sub-topic/ Issue covered :
Interest Rates
Home Work:
Bond Characteristics & Valuation
Reading and Preparing Nike Inc, Cost
Stock Valuation
of Capital
Activity : Lecture and Class
Exercises
Learning Outcome : 1, 2, 3, 4
Reading/ References :
LGJ Ch.6 and Ch 7
Topic : Cost of Capital
Nike Inc, Cost of Capital Case
Discussion
Sub-topic/ Issue covered :
Risk and Return
Cost of Capital
Activity : Lecture and Class
Discussion
Learning Outcome : 1, 2, 3
Reading/ References :
LGJ Ch.8 and Ch.9
Mid Exam (LG/LO 1,1; 1.2; 1.3; 4.1; 6.1 assessment)

Week 8

Topic :

Week 6

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Week 9

Week 10

Week 11

Week 12

Capital Budgeting
Sub-topic/ Issue covered :
Capital Budgeting Techniques
Capital Budgeting Cash Flow
Activity : Lecture and Class
Exercises
Learning Outcome : 1, 2, 3
Reading/ References :
LGJ Ch10 and Ch.11
Topic :
Case Discussion
Risk and Refinements in CB
Sub-topic/ Issue covered :
Activity : Lecture and Class
Discussion
Learning Outcome : 1, 2, 3
Reading/ References :
LGJ Ch.12
Investment Detective
Fonderia di Turino
Topic :
Leverage and Capital Structure
Sub-topic/ Issue covered :
Activity :
Lecture and Class Exercises
Learning Outcome : 1, 2, 3, 4
Reading/ References :
LGJ Ch.13
Topic : Pay Out Policy
And Guest Lecture Session
Sub-topic/ Issue covered :
Activity : Lecture
Learning Outcome : 1, 3, 4, 5, 6
Reading/ References :
LGJ Ch.14
Topic :
Short Term Financial Decision
Sub-topic/ Issue covered :
Working Capital Management
Current Liabilities Management
Activity : Lecture and Case

Home Work: Reading and Preparing

Investment Detective and Fonderia
Cases

Quiz
Discussion on
Investment Detective Case
Fonderia di Turino Case

Home Work:
Reading and Preparing Dell Working
Capital Management

Dell Working Capital Management

Case Discussion
Home Work: Reading and Preparing
Primus Case Discussion

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Week 13

Week 14

Discussion
Learning Outcome : 1, 2, 3
Reading/ References :
LGJ Ch.15 and Ch.16
Topic : Special Topics in Finance
Primus Case Discussion
Sub-topic/ Issue covered :
Leasing
Derivatives
Merger and Acquisition
Activity : Lecture and Case
Discussion
Learning Outcome : 1, 2, 3
Reading/ References :
LGJ Ch.17 and Ch.18
Final Exam (LG/LO 1,1; 1.2; 1.3; 4.1; 6.1 assessment)

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7. Assessment Summary
Table 4. Assessment summary and weight of Financial Management
WEIGHTING/ MARKED
ASSESSMENT TASK
DUE DATE
OUT OF
Individual Assignment
TBA
20%/ 100
In accordance
with the
Group Assignment
20%/ 100
course
schedule
Mid Exam
Week 7
30%/ 100
Final Exam
Week 14
30%/ 100

LEARNING
OUTCOMES
1, 2, 3, 6

4, 5, 6

1, 2, 3, 4, 5, 6
1, 2, 3, 4, 5, 6

8. Grading Policy
o Grading weight follows Table 4
o Students final grade will be downgraded by one level when the attendance rate is
<80%
o Student will be fail if found cheating in class
o Participation in the class is a vital part in developing the students competences
in this financial management course. All students are expected their active
participation in sharing their knowledge and ideas, actively conveying their
opinions or argumentations, so that other people could grasp and understand
what the student is thinking about.

9. Course Policy
(i) Please refer to Study Program/ University Policies (e.g. presence percentage
requirement) and Guidelines
(ii) PREREQUISITE: Accounting
(iii) Laptop and personal communication are not allowed during in-class exam
(iv) Penalty is applicable for late submission
(v) No make-up quizzes

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10. Lecturer Profile

Name
E-mail
Office

: Dr. Ir. Subiakto Soekarno, MBA, CFP

: subiakto@sbm-itb.ac.id
: Pertamina Building MBA ITB
Jl. Gelap Nyawang No. 1
Bandung

Subiakto Soekarno is a lecturer staff at the ITB School of Business and Management. He earned an
undergraduate degree (Majoring in Mechanical Engineering) from Institute Technology Bandung in
1983. Funded by General Electric Scholarship, he continued his study to the Oklahoma State
University - USA in 1992, and earned an MBA degree. During his study at the Oklahoma State
University, he received Beta Gamma Sigma honor/membership due to high scholastic achievement.
He has over 24 years of professional experience in various companies especially in the strategic
industry/state owned and multinational company. During his professional carreer, he has been
assigned in various management positions such as : program manager, division general manager,
finance director, president commissioner, and chaiirman of audit committee. In 1998 he received a
national level award Satya Lencana Karya Pembangunan from President of the Republic of
Indonesia due to his contribution in turbine overhaul technology transfer in country.
In addition to his professional career, he has an extensive personal experience in the capital market
area. He has been participating as real investor in Bursa Efek Indonesia (stocks, bonds, mutual
funds), Bursa Berjangka Jakarta (forex, index), New York Stock Exchange/NASDAQ /CBOE (stocks,
exchange traded fund, options). He has passed Chartered Financial Analyst level I examination
conducted by AIMR (Association for Investment Management and Research USA). Recently he
earned an RFA (Registered Financial Associates), a professional title in Personal Financial Planning,
from IARFC-USA. He also hold QWP (Qualified Wealth Planner) from International Association for
Financial Planning, Singapore and CFP (Certified Financial Planner) from Financial Planning Standard
Board Indonesia.
His research interest includes but not limited to: Corporate Finance, Valuation, Mergers &
Acquisition, Emerging Markets, and Portofolio Management.

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