DEPARTMENT OF BUSINESS STUDIES

FINANCIAL MANAGEMENT

Module Code: EFMM 705

Semester: First

Duration: 18 weeks

Credit Hours: 3

Course Description:

This course focuses on companies' sources and uses of financial resources. Of particular interest are the
capital/debt structure decision and capital budgeting techniques, emphasizing the impact of long-end
short-term uses and sources of funds on the firm’s value.

Course Objectives: To understand the finance function and its relationship to other decision-making areas in the
firm. To study the theory and techniques in acquiring and allocating financial resources from an internal
management perspective. To develop an understanding of the processes that lead to the maximization of
stakeholder wealth. This includes an understanding of the optimal allocation of funds, the optimal
financial structure of the firm and the forces that impact the valuation of the firm.

Brief Course Plan - Financial Management

S/N Topic Description Week

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FINANCIAL MANAGEMENT EFMM 705
 Brief Course Plan - Financial Management
S/N Topic Description Week
Introduction to Financial Management: 1
1 Definitions, Meanings, Goals of Financial Management and
other Financial Management concepts

Introduction to Financial Management: 2

2 Definitions, Meanings, Goals of Financial Management and
other Financial Management concepts

Accounting Review 3
3
Financial Statement Analysis

Working Capital Management 4

4

Financial Budgeting: Cash Budgeting 5

5

Operating Leverage 6
6

Current Asset Management 7

7

Mid-Semester Examination 8
8

Sources of Short Term and Long Term Finance 9

9

Time Value of Money 10

10

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FINANCIAL MANAGEMENT EFMM 705
 Brief Course Plan - Financial Management
S/N Topic Description Week
Capital Budgeting Decisions 11
11

Cost of Capital 12
12

Risk 13
13
Capital Markets

Common and Preferred Stock 14

14
Dividend Policy (overview)

15 Mergers, Acquisitions and Divestiture 15

16 16

FINAL EXAMINATION

Learning outcomes:
This course provides an overview of financial management. On completion of this course, students are expected to
have a better understanding of the following.
1. Financial management
2· Significance of financial management for non-finance students and professionals
3· Important concepts and areas in financial management
4· The position of financial managers in organizational hierarchy and their respective work
domains.
5· Different business legal entities, their advantages and limitations.
6· The external and internal business environments and their relevance to financial management.
7· Different types of financial and real assets markets.

Grading Criteria

Percentage Status Grade

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FINANCIAL MANAGEMENT EFMM 705
<50% Fail F
50-59% Pass D
60-69% Pass C
70 – 79% Pass B
80 – 89% Pass A
90 – 100 % Pass A+

RII Policy:
1. All work submitted must be accompanied by an assessment submission form. The lower part of this form
is to be signed by the lecturer and kept by the student as proof of submission.
2. All work submitted after the submission deadline will be limited to a maximum of 50% and will not be
accepted after the end of the study period unless special circumstances apply.

Student assessment:
Provide, in table format as shown below, a schedule of formal assessment tasks and major
examinations for the unit.

Assessment Event Weighting Learning Outcomes Duration / Words

Limit
Mid-Term Examination: Open ended questions focused on
knowledge and understanding of key principles of Financial 20% 1,2,3 2 Hours
Management.
Group Assignment: Focusing on the importance of and the
20% 1-6 2500 Words
activities of Financial Management:
Presentation of Group Assignment: 10 %
Individual Assignment: 10 % 1-4 1500 Words
Final Examination: Open ended questions focused on 25% 1-7 2 Hours
knowledge and understanding of the practical aspects of
Financial Management.
Class Participation / H.W/Attendance 15% 1-7
TOTAL 100 %

*Class Participation is impossible without attendance, thus more than 1 unexcused absence will automatically
reduce class participation by at least 3%

Prescribed and Recommended Readings:

1st Text: Foundations of Financial Management, 6/e Stanley B. Block, Texas Christian University
Geoffrey A. Hirt, DePaul University and Mesirow Financial, J. Douglas Short, Northern Alberta Institute
of Technology. 2003 McGraw-Hill Higher Education

2nd Text: Van Horne: Fundamentals of Financial Management, 13/E.J. Van Horne, Stanford University
John M Wachowicz, The University of Tennessee

Quality Expectations:

At RII, professional deliverables are expected at all times content and presentation , both for the examination and
during the class. This means that all the homework, project, presentation and other artifacts must be prepared using

Semester 1st-2013
FINANCIAL MANAGEMENT EFMM 705
a word processor, spreadsheet or any other relevant computer software. These must be in a format readable on a
Windows PC by Microsoft PowerPoint, Microsoft Word, Microsoft Excel, Microsoft Project, or Adobe Reader,
unless another format is coordinated with the instructor. Make sure all documents have at a minimum:

 Your name and/or your team member names

 No spelling mistakes
 Date and document title
 Professional analysis, conclusions and/or recommendations
 Naming conventions for files:
 Individual submissions: Last Name_Assignment #
 Team Submissions: Team_X_Assignement #_ Description of file (Schedule, WBS, SOW, etc.)

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