To understand the basic notion on financial management specially on the key principles of finance, the important role that financial markets have on the economy.
Course code: SHS-MNGE01
ECTS Credits: 6Professor: Dr. Prince Mbokani Kizito
The course convers seven chapters and each chapter is subdivided by different sections. The first chapter is the introduction to financial management, it covers four fundamentals sections, the first one is focused on the overview of financial that comprises the basic notions on financial. The second is about the basic notion of financial management that deals with essential elements of financial management, the third section is financial market and financial institutions. The last is about the financial principles.
The second chapter concerns the evaluating of financial statements and financial performance that is subdivided by 3 sections. Firstly, it covers the important elements take into consideration in analyzing the financial statements. Secondly, it focuses on types of financial statement analysis and lastly, it discusses how to analyze the financial statements.
The third chapter convers the short-term financial management of a corporation, shortly this chapter covers all the matters related to short-term financial management, thus it focuses on financial planning and forecasting, working capital management and sources of short term financing.
The fourth chapter is related to capital budgeting of any investment project. It covers three fundamentals sections. The first one is focused on time value of money that is a crucial notion in finance since it affects a wide range of business decisions and its analysis has many applications such as planning for retirement, valuing stocks and bonds, etc. The second section is about capital budgeting techniques and the last section refers to the risk and return.
Fifth chapter refers to the cost of capital, capital structure and dividend policy. It covers four basics sections, the first one focuses on cost of capital that is subdivided by the components of cost of capital such as debt, preferred stock, and common equity. The second section is about the capital structure that refers to the mix of long-term sources of funds. The last section deals with dividend policy that denotes how business net profits can be distributed among the shareholders.
The sixth chapter is about the sources of long-term financing and their valuation. It examines the characteristics of bonds and discusses the various factors that influence bond prices and their valuation as well as stock prices and their valuation.
The last chapter refers to the international finance that deals with the monetary interactions that occur between two or more countries. Thus, the chapter discusses reasons of corporations to go global and risk of multinational trade and lastly, the chapter discusses about the foreign exchange rate that focuses on foreign exchange rate quotations, spot rates and forward rates, and foreign exchange risk.
Today’s students are tomorrow’s business and government leaders, and it is necessary that they understand the basic notion on financial management specially on the key principles of finance, the important role that financial markets have on the economy. It is also essential that they understand the matters related to long-term and short-term financial management. They should also understand the characteristics of bonds and stock; and lastly, they should understand finance theories that are vital in the finance world, such as dividend theories etc.
After this class, student will be firstly able to evaluate the accounting data by using financial statement. Secondly, they should be able to propose the suitable source of finance that can create value to company’s shareholders. thirdly, they should be able to evaluating among the alternative projects of any company in order to make decision whether to accept or reject them, and lastly, they should be able to value the bond and stock of any company.
- Exercises after each chapter
- Final standard quiz and homework
Chap. I. INTRODUCTION TO FINANCIAL MANAGEMENT
Chap. II. EVALUATING OF FINANCIAL STATEMENTS AND FINANCIAL PERFORMANCE
Chap III. SHORT-TERM FINANCIAL MANAGEMENT
Chap. IV. CAPITAL BUGETING
Chap. V. COST OF CAPITAL, CAPITAL STRUCTURE AND DIVIDEND POLICY
Chap. VI. SOURCES OF LONG-TERM FINANCING AND THEIR VALUATION
Chap. VII. INTERNATIONAL FINANCE