مبادئ الإدارة المالية - BIT 250

Course Competencies

1.

Define what is finance  and its importance for career

2.

Discuss managerial function, role of financial manager and firms value

3.

Discuss forms of business organizations

4.

Concept of financial market and differentiate between money market and capital market

5.

discuss about financial institution

6.

Discuss about the financial information and financial ratio

7.

Introduce concept of time value of money

8.

Introduce concept of financial securities particularly bonds and stocks

9.

Introduce concept of capital budgeting

10.

Define and concept of  risk and returns

10.

Definition of Cost of Capital

11.

Describe firms working capital management

12

Describe firms financial policy and dividend policy

13

Discuss multinational financial management

Course Outline

1. Overview of finance
   1. Definition of finance and its relation to accounting and economics
   2. The role of Financial managers and firm's value
   3. Organizational structure for financial manager
   4. Relationship among stakeholders and agency problem
   5. Career opportunity for finance

2. Financial Market and Financial institutions
   1. Financial market

                                                              i.      Capital market

                                                            ii.      Money market

                                                          iii.      Derivatives market

2. Types of markets

                                                              i.      Primary market

                                                            ii.      Secondary market

3. Financial institutions

                                                              i.      Financial intermediary

                                                            ii.      Merchant bankers

3. Financial information and Ratio Analysis
   1. Components of Financial statements
   2. Ratio analysis

                                                              i.      Trend Analysis

                                                            ii.      Cross-sectional Analysis

4. Time value of money
   1. Importance of time value of money
   2. Introduction to present and future value concept
   3. Annuity and its application to personal financial planning

5. Valuation and Characteristics of bond
   1. Definition of bond
   2. Intrinsic feature of bond
   3. Valuation of bond
6. Valuation and Characteristics of Stock and stock market
   1. Differences between common and preferred stock
   2. Voting right of common stockholders
   3. Valuation of common stock and investors buying and selling decisions

   VII. Risk and Return and portfolio theory

           a. Definition of risk and return

b. Calculation of Holding period return, expected return

                c.Calculation of Variance, standard deviation and coefficient of variation

4. Principles of investment diversification and portfolio risk and return

   VIII. Cost of Capital

               a. Definition of cost of capital

               b. Component of financial capital

          c.  Calculation of weighted average cost of capital

    IX. Introduction to firm capital budgeting

         a. Definition of capital budgeting

         b. Types of capital budgeting project

         c.  Evaluation methods for projects

   X.  Firms working capital management

          a.  Definition of Working capital

          b. Management of cash, account receivable and inventory

  XI. Introduction to firm capital structure and dividend policy

           a.   Basic concept of firm's capital structure

a.    Understanding the dividend policy

XII.          Introduction to Firm merger and acquisition

a.             Type of mergers

b.            Reasons  for mergers

c.             Economics Valuation of Merger

XIII.       Introduction to international financial management