AMERICAN INTERNATIONAL UNIVERSITY – BANGLADESH

Faculty of Business Administration

BBA Program
Department of Finance

Term : Fall 2021-2022

I - Course Code and Title : MBA 3116; Financial Management, SECTION A.
II – Credit : 3 Credit Hours, Meeting time – Saturday 6:30 pm to 09:30 PM
Course Instructor: Dr. Mohammed Kamrul Hasan, Associate Professor, Dept. of Finance, Phone
01717296692, Email: khasan@aiub.edu
III - Course Description: This class would provide the students with an understanding of the tools that have
been developed to value companies and investment projects. The class would also provide the students with the
tools and skills needed to make optimal investment and portfolio decisions, and to understand the process of
corporate decision making. We will also discuss how firms should raise funds for their real investments.
1. Course Outcomes: At the end of the Course, the Student will be able to:

Describe major decision areas of Financial Management and understand business objectives.
CLO1
Explain the financial goal of the firm, value creation, agency relationship, agency problem and
agency cost and corporate governance.
CLO2
Understand the concept of cash flow patterns, interest rates and their relationships in
determining value of different investment opportunities, savings schemes and loan products
CLO3
Demonstrate the ability to evaluate different investment opportunities solely based on after
considering the effect of time value of money.
CLO4
Realize that profitable investment opportunities are the sources of value addition for a firm.
CLO5
2. A Mapping of Course Outcomes to Program Outcomes:
PLO1 PLO2 PLO3 PLO4 PLO5 PLO6 PLO7 PLO8 PLO9 PLO 10
CLO1      
CLO2      
CLO3       
CLO 4       

CLO 5         

2. B
CO/CLOs Level of Domain PO Assessment Tools
Assessed
C P A S AO
CO1  CT 1 Quiz, Mid and Final exam etc.

1
 CO2  CT 5 Case study, Term paper, Assignment etc.
CO3  CT 3 Presentation, Group discussion etc.
CO4  TS 6 Survey, Term paper, joining webinar
CO5  CT 6 case presentation etc.
C: Cognitive; P: Psychomotor; A: Affective; S: Soft skills (CT: Critical Thinking, TS: Teamwork,
Leadership etc.); Any other: AO
IV – Objectives: At the end of the course students will start to interpret the complex world of financial
management, including its nature and scope and the different fields involved. The major topics covered in class
would include the objectives of firms, the functions of a financial manager, performance evaluation of firms and
their managers, valuation of financial instruments, capital budgeting, and time value of money.

Cognitive Component
1. Describe major decision areas of “Financial Management”
2. Explain the financial goal of the firm, value creation, agency relationship, agency problem and agency cost
3. Understand the concept of cash flow patterns, interest rates and their relationships in determining value of
(or, payment of) different investment opportunities, savings schemes and / or loan products
4. Solve problems related to both annual and other compounding frequencies.
5. Differentiate between nominal and effective rates.

Psychomotor Skills
1. Classify different financial tasks of an organization into different relevant categories
2. Discuss the relationship among managerial decisions, cash flow, risk and share price
3. Perform basic TVM calculations including determination of future value and present value of different cash
flows, number of periods, interest rate, EMI of a loan and so on.
4. Demonstrate the ability to evaluate different investment opportunities solely based on after considering the
effect of time value of money.
5. Demonstrate the ability of picking up the best among the available projects solely based on their economic
effectiveness.

Affective Component
1. Accept and appreciate the need of understanding and adjusting value of cash flows before taking a
financial decision
2. Appreciate the importance of adjusting risk in investment decision-making process.
3. Realize that profitable long-term investment opportunities are the sources of value addition for a firm.

V – Topics to be covered

Time Suggestive Teaching Intended learning

Topic Specific objective(s) outcomes
Frame Activities Strategy(s)
Lecture Intellectual Use of power
Chapter 1 1. Overview of the 1,2 exchange of point and white Review and recall
An course outline and information & board to deliver the topics
Overview assessment strategy One to one the lecture.
of 2. Concept of “Financial communicatio Tabulate decision
Financial Management n with phases of financial
Managem 3. Main Functions of students.
management
ent Financial Power point

2
 Management
4. The Goal of the Firm: Illustrate the process
wealth maximization, view of wealth
presentation
meaning of wealth in maximization
finance topic/lesson)

Problem Review and recall

solving of time Power Pt the topics
1. Present Value & Future
value from the Presentation &
Value (single flow)
Chapter 3 Textbook white Board Understand
2. Present Value & Future Lecture
Time And case study illustration
Value (annuity flow) 3,4,5,6 competitive strategy
Value of solving on Excel sheet use
3. Amortization of loan and how to achieve
Money Time Value of and case study
expense strategic fit.
Money solution

Chapter 4 Review and recall

The the topics
Learning about
Valuation
1. Key characteristics of different types
of Long- Power Pt
Bonds of bonds and Understand the
Term Lecture Presentation and
2. Valuation of Coupon their use. drivers of debt
Securities 7,8 white Board
Bond, Zero Coupon Solving related
(Bond problem solving instruments and their
Bond & Console math problem affects
Valuation
)

Use of Power
Problem
1. Explain the different Point and white Review and recall
solving of ratio
types of financial board to deliver the topics
from the slide
statements the lecture.
And case study
Chapter 6 2. Liquidity ratio A small case
solving on Understand how to
Financial 3. Activity ratio Lecture analysis Using
Financial analyze financial
Statement 4. Leverage ratio 9,10 Excel to show
Statement statement
Analysis 5. Profitability ratio how trend
Analysis
6. Cross Sector & Industry analysis charts
(Trend
analysis are made from
Analysis)
7. Trend analysis excel sheet data

Open
discussion and
Review of Mid Term Lecture
------ Question White board use
syllabus 11,12
Answer
session
Mid Term
Chapter 4 1. Defining different types Lecture Interactive Power Pt
The of stocks and its 1,2,3 discussion to Presentation and Review and recall

3
Valuation the topics
of Long- understand the
Term characteristics basics of stock Learn about different
Securities 2. Valuation concept market white board stock valuations
(Stock Application of valuation functions and problem solving techniques
Valuation models solve related
) math problem

1. Define risk and return Understanding Review and recall

2. Using Probability the concept of the topics
distribution to measure different risks Power Pt
Chapter 5
risk Lecture and how risk Presentation and Understand risk
Risk and
3. Attitudes Towards risk 4,5 can be white board return planning &
Return
4. Estimating risk for estimated for problem solving solve relevant
single asset and two assets and critical problems
Asset Portfolio portfolios
Learning the Review and recall
1. Cost of Debt (before and importance of the topics
after Tax) using debt and
Chapter Power Pt
2. Cost of Equity equity finance
15 Lectur Presentation and Learn cost of capital
(Common Stock and Problem valuation model and
The Cost e 6, 7 white board
Preferred stock) solving from
of Capital illustration optimize the profit
3. WACC slide and mini
case on level.
WAAC
Review and recall
Learning to the topics
Chapter 1. Introduction Power Pt
use different
13 2. Capital Budgeting Tools Lectur Presentation and
techniques to Learn to solve
Capital and Techniques e 8, 9 white board
evaluate capital budgeting
Budgeting Investment Decision illustration
projects techniques problems
Making

Lecture Learning the Power Pt Review and recall

Chapter 8 1. Working capital 10,11 concept of Presentation and the topics
Working definition working white board
Capital 2. Gross Vs Net Working capital and its illustration
Learn standard
Managem capital importance.
ent 3. Estimating Working Also learning methods to select
capital requirements for a how to working capital and
firm estimate to assess them
working
Review of Final Term capital Understand about
syllabus gross and net
working capital

4
 Final Exam

VI - Course Requirements
 Grading Policy will be as per the university grading structure.

 You are expected to attend and participate in all class meetings. Irregular attendance will not be permitted.
Class attendance below 80% will lead to an automatic F grade. It is entirely the responsibility of the
students to collect the materials that has been missed due to failure of attending any classes for any reason
whatsoever. Let it be reminded that lectures will not be repeated.
 Withdrawal from class is not automatic. The student who desires to withdraw is responsible for processing
the withdrawal.
 There will be no make‐ups for any missed exams or quizzes.
 I reserve the right to adjust final grades due to excessive disruptive and disrespectful class demeanour (e.g.
chatting with classmates, interrupting your classmates or instructor, leaving class early, using cell
phones/laptops, etc.).
 Assigned chapters and reading should be read prior to their discussion/review in class.
 Participation in class discussion is required. Participation is defined (for this course) as constructive
contribution to the development of a topic as it is discussed in class. Quality of participation is a significant
factor to be included in the assessment of final grade.

VII – Evaluation
Mid Term Final Term
Distribution Marks Distribution Marks
Attendance and class work 10% Attendance and class work 10%
Quiz 20% Quiz 20%
Case solving and Assignment 20% Case solving and Assignment 20%
Midterm Exam 50% Final Exam 50%
Total 100% Total 100%
Final Grade = 40% (Mid Term) + 60% (Final Term) = 100%

VIII - Required text:

Fundamentals of Financial Management: James C. Van Horne and Jr. John M Wachowicz, 13th Edition,
Prentice-Hall
http://ijevanlib.ysu.am/wp-content/uploads/2018/01/fundamentals-of-financial-management-Van-horne.pdf

Reference texts:
1. Essentials of Managerial Finance: Scott Besley & Eugene F. Brigham, fourteenth edition, South‐Western
College Pub.
2. Principles of Managerial Finance: Lawrence J. Gitman, Pearson Education, 12th edition
3. Financial Management Text, Problems and Cases
4. Fundamentals of Financial Management: Eugene F. Brigham & Joel F. Houston. Concise edition, the
Drayden Press.

5
NAME & DESIGNATION SIGNATURE
APPROVED BY:
DR. NISAR AHMED
PROFESSOR, HEAD, DEPARTMENT OF FINANCE, FBA
COURSE INSTRUCTOR:
Dr. Mohammed Kamrul Hasan
Associate Professor, Department of Finance AIUB