Creating the great business leaders

FINANCIAL MANAGEMENT
 Fakultas Ekonomi dan Bisnis
School of Economic and Business

Telkom University

TIEKA TRIKARTIKA GUSTYANA, SE., MM.

thieqa.gustyana80@gmail.com

2 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business

Telkom University
 Reading Material :
o Arthur J Keown, John D. Martin, J.W. Petty, David F. Scott Jr. “Financial Management”. 10th
edition
o Gitmann : Fundamentals of Financial Management
o Prof Dr Riduwan S Sundjaya, Drs MSBA & Dra Inge Barlian Ak MSc Manajemen Keuangan

 Grades proportion:
Mid Term Exam : 30 %
Assignments : 30 %
Final Exam : 40%

3 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business

Telkom University
Class Regulation:

1. Class will be started at 07.15 AM. Do not be late, no bargaining.

2. Turn off your handphone,
3. No sandals, no T-shirts, No ripped jeans,
4. Calculator is A Must
5. Mutual respect.

4 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business

Telkom University

weeks Material

Before Mid Term Exam

1 An Introducing To Financial Management

2 Evaluating Firms Financial Performance
3 Time Value of Money
4 Risk & Return
5 Stock Valuation
6 Bond Valuation
7 Quiz
8 Mid Term Exam
5 Creating the great business leaders
 Fakultas Ekonomi dan Bisnis
School of Economic and Business

Telkom University
Weeks Material

Before Final Exam

9 Cost of capital
10 Operating Leverage, Financial Leverage & Total Leverage

11 EBIT-EPS, Firms Financing Mix

12 Capital Budgeting Techniques

13 Basic Concept of Capital Budgeting

14 Loan and Leasing
15 Review
16 Final Exam

6 Creating the great business leaders

 Creating the great business leaders

An Introduction to Financial Management

 Fakultas Ekonomi dan Bisnis
School of Economic and Business Financial Management (Manajemen Keuangan)
Telkom University
Keown, et al. (2005)
“Financial Management is concerned with the maintenance
and creation of economic value or wealth. Focus on decision
making to creating wealth”

“financial management deals with how the corporation

obtains the funds and how it uses them” (Hoagland)

8 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business Goal of The Firm
Telkom University

Shareholder Wealth Maximization

a. Maximizing firm value
b. Maximizing stock price

9 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business The Corporation and Financial Markets
Telkom University

 Primary Market

10 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business The Corporation and Financial Markets
Telkom University

 Primary Market
 Market in which new issues of a
security are sold to initial buyers.

11 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business The Corporation and Financial Markets
Telkom University

 Primary Market
 Market in which new issues of a
security are sold to initial buyers.
 Secondary Market

12 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business The Corporation and Financial Markets
Telkom University

 Primary Market
 Market in which new issues of a
security are sold to initial buyers.
 Secondary Market
 Market in which previously issued
securities are traded.

13 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business The Corporation and Financial Markets
Telkom University

 Initial Public Offering (IPO)

14 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business The Corporation and Financial Markets
Telkom University

 Initial Public Offering (IPO)

 The first time the firm’s stock is sold
to the general public.

15 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business The Corporation and Financial Markets
Telkom University

 Initial Public Offering (IPO)

 The first time the firm’s stock is sold
to the general public.
 Seasoned New Issue

16 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business The Corporation and Financial Markets
Telkom University

 Initial Public Offering (IPO)

 The first time the firm’s stock is sold
to the general public.
 Seasoned New Issue
 A new stock offering by a firm that
already has stock that is traded in
the secondary market.

17 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business Financial Management in picture:
Telkom University

18 Creating the great business leaders

 Fakultas Ekonomi dan Bisnis
School of Economic and Business Financial Management Principles :
Telkom University

1) Risk - return trade-off.

2) Time value of money.
3) Cash - not profits - is king.
4) Incremental cash flows count.
5) The curse of competitive markets.
6) Efficient capital markets.
7) The agency problem.
8) Taxes bias business decisions.
9) All risk is not equal.
10) Ethical dilemmas are everywhere in finance.

19 Creating the great business leaders