NORTHERN CARIBBEAN UNIVERSITY

COLLEGE OF BUSINESS AND HOSPITALITY MANAGEMENT

DEPARTMENT OF PROFESSIONAL AND CONTINUING EDUCATION

FNCE 341: Financial Management Principles

Course Information Section Semester Class Location Class Times A Fall Semester RH 404 9:30am- 10:50 am Instructor Contact Information Instructor Office Location Office Hours Email Address Cell Phone Ingrid E. M. Blair, MBA TBA By Appointment ingrid.blair@ncu.edu.jm 876-395-8225

COURSE DESCRIPTION_______________________________________________________

This course provides the building blocks of Finance and sets the parameter that distinguishes it from other business courses. It provides students with the skills and knowledge required to enhance their entrepreneurship yearning and also, to successfully complete advanced courses in the field of Finance. Understanding basic financial concepts is critical to making informed decisions concerning the use of financial resources.

This course will enable students to make simple appraisal of published financial statements, and identify and examine the sources and utilization of funds in business organizations on both the short and long term basis.

INSTRUCTIONAL OUTCOMES________________________________________________ A. Learning Outcomes: Upon successful completion of this course, students will have a working knowledge of and be able to: 1. 2. 3. 4. 5. 6. 7. Use various analytical tools of finance. Appraise published financial statements. Enhance forecasting techniques and project evaluation. Support new instructional technologies in todays business environment. Build a framework for making successful and ethical business decisions. Critique real-world events and relevant business practices. Acquire skills and abilities critical to life- long learning.

B. Core Objectives: 1. Understand the importance of finance in your personal and professional lives and identify the three primary business decisions that financial managers make. 2. Describe the structure and functions of financial markets. 3. Describe the content of the four basic financial statements and discuss the importance of financial statement analysis to the financial manager. 4. Understand compounding and discounting techniques and calculate the future value/ present value of cash flows and perpetuities. 5. Identify the key features of bond; calculate the value of a bond and relate it to the yield to maturity on the bond and describe the four key bond valuation relationships. 6. Identify the basic characteristics and features of common stock and use the discounted cash flow model to value common shares. 7. Understand current business practice with respect to the use of capital-budgeting criteria and explain the importance of risk analysis in the capital-budgeting decision-making process. 8. Understand the concepts underlying the firms overall cost of capital and the purpose for its calculation. 9. Understand the nature and importance of the foreign exchange market and learn to read currency exchange rate quotes 10. Define risk management in the context of the five-step risk management process and understand how insurance contracts can be used to manage risk.

INTEGRATION OF FAITH & LEARNING OUTCOMES___________________________ Throughout this course we will:

1. Explore the financial policies and practices that define strategic Financial Management and how the principles of Financial Management should be guided by the perspective of Christian service in a global setting. 2. Communicate the topics to present day, practical, ethical and moral issues. 3. Appreciate the trials with different circumstances, may have permanent effects on our lives. 4. Demonstrate the fulfillment of Gods manifestation in our lives and that hard work done in an orderly fashion will result in value added. 5. Behave in a manner that is reflective of a lifestyle made in the image of God. 6. As one Christian scholar puts it, the effort to think like a Christian is rather to take seriously the sovereignty of God over the world he created, the lordship of Christ over the world he died to redeem, and the power of the Holy Spirit over the world he sustains every moment (adopted). COURSE CONTENT OUTCOMES_______________________________________________ UNIT 1: An Introduction to Financial Management Instructional Outcomes: By the end of Unit 1, students will be able to: 1.1 Explain in his/her own words what is finance and why studying finance is related to the goal of the firm. 1.2 Understand the ten principles that form the basis of Financial Management. 1.3 Define the firm and discuss the role of the firm in financial markets. 1.4 Evaluate the financial position of the firm at a particular point in time, using financial statements and ratio analysis. 1.5 Predict an organizations financial position through financial planning and forecasting. CONTENT 1. Principles of finance 2. Firms and the financial market 3. Understanding financial statements, taxes and cash flows 4. Financial analysis 5. Financial forecasting, planning and budgeting MAJOR ACTIVITIES 1. Lectures 2. Active class discussion, utilising question and answer sessions. 3. Group discussion re the different types of business organisations. 4. Group discussion on financial statements and their importance to a business. 5. Solving end of chapter questions, utilising chalk and talk plus student participation at the board. 6. Class discussion on the necessity of financial planning in the operation of a firm.

UNIT 2: Valuation of Financial Assets

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Instructional Outcomes: By the end of Unit 2, students will be able to: 2.1 Apply principles of time value of money to real life situations. 2.2 Be able to differentiate between a single cash flow, an ordinary annuity and an annuity due. 2.3. Appraise assets based on the concepts of risk and return. 2.4 Analyse market risk and portfolio risk. 2.5 Evaluate the value of stock and bonds. CONTENT 1. Time value of money 2. Risk and rates of return 3. Bond valuation 4. Stock valuation MAJOR ACTIVITIES: 1. Lectures 2. Class discussion on present value/ future value concepts and real world applications. 3. Group discussion on the relevance of diversification. 4. Class discussion on the different categories of stocks traded on the Jamaica Stock Exchange. 5. Research on Government of Jamaica bond issues and the history of interest rates and its impact on the Jamaican economy. 6. Class quiz UNIT 3: Investment in Long- Term Assets Instructional Outcomes: By the end of Unit 3, students will be able to: 3.1 3.2 3.3 3.4 3.5 Describe the main principles underlying the investment decision criteria. Explain the importance of each method of investment appraisal used. Examine the risk analysis of a projects cash flows. Assess the cost of capital for an organization. Value creation for the shareholder utilizing economic valued added principles.

CONTENT 1. Investment Decision Criteria 2. Forecasting Project Cash Flows 3. Risk Analysis of Project Cash Flows 4. The Cost of Capital 5. Managing for Shareholder Value MAJOR ACTIVITIES 1. Lectures 2. Class discussion on the importance of investment appraisal and the different methods employed.
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3. Working end of chapter questions and interpreting results obtained through class discussion 4. Class quiz based on the content of the unit.

UNIT 4: Capital Structure and Dividend Policy Instructional Outcomes: By the end of Unit 4, students will be able to: 4.1 Evaluate the capital structure policy of a corporation. Assess the financing of a corporation by reviewing the analysis and impact of leverage. 4.3 Explain major challenges faced by multinational corporations: business risk, foreign currency transactions, efficient financial markets and inter-country risk. 4.4 Discuss some possible solutions to the challenges identified.
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CONTENT 1. Capital Structure Policy 2. Raising Capital in Financial Markets 3. Making Financial Decisions 4. Dividend Policy MAJOR ACTIVITIES 1. Lectures 2. Class discussion on the firms capital structure and its relevance to investors. 3. Group discussion on the impact of financing and operating leverage. 4. Class discussion on the relevance of dividend policy. 5. Group work re research to be done on firms listed on the Jamaica Stock Exchange dividend payout policy. 6. Class discussion to distinguish between cash dividend, stock split and share repurchase. UNIT 5: Working Capital Management and Special Topics in Finance Instructional Outcomes: By the end of Unit 5, students will be able to: 5.1 5.2 Formulate sound management techniques related to cash management strategies for the firm. Assess the organizations liquidity position through working capital management.
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5.3 5.4

Explain the concept of international finance taking into consideration the globalization of product and financial markets. Analyze risk management techniques for the organization.

CONTENT Working Capital Management and Short-Term Financing Cash and Marketable Securities Management International Finance Accounts Receivable and Inventory Management Corporate Risk Management Corporate Restructuring Term Loans and Leases

MAJOR ACTIVITIES 1. Lectures 2. Developing a long term/ short term financial plan for an organisation through working capital management. 3. Discuss how credit terms inventory methods affect the firms cash conversion cycle. 4. Class discussion on the foreign exchange market and the benefits of arbitrage to the investor 5. Group discussion on the five step corporate risk management process.

COURSE REQUIREMENTS____________________________________________________

Instructors Expectations: Students are expected to be punctual, attend ALL classes and sign the class register. In the eventuality that a student will be absent or late for class due to an emergency or illness, a message should be sent to the instructor before class. It is expected that students will also be reminded that devotionals are a fundamental part of every class and active participation in these structured exercises is required.

Devotions: Every student will conduct devotions at the start of each class session. Based on class sizes, it is not uncommon for students to conduct devotions on more than one (1) occasion. This process will be guided by the devotional roster. As a Christian institution, the devotional exercise is to be taken very seriously. The devotionals must be themed, prepared thoroughly and must be meaningful to the listeners.
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Class Participation: You are expected to participate in class discussions of the readings, the instructors lectures and student presentations. Students, who attend class, effectively complete the tasks (including devotionals), and demonstrate their accomplishment of the learning objectives through informed discussions will be allocated the full ten percent (10%). Points will be deducted for students who miss classes and/or do not engage in informed discussions.

Food and Drink: Whereas drinking is permitted eating is not during class. However based on the particular circumstance permission will be granted from the instructor. This permission however must be obtained before the start of class. Group Presentations: The group presentation is meant to be a team effort and will be graded accordingly. Each team member will receive a group grade as well as an individual grade based on their role in the presentation and their peer reviews. If a group member is not present on presentation day without contacting the instructor PRIOR to class, they will receive half credit for the group project.

Class Representative: A class representative will be democratically selected for this class. This student will assist the instructor and be responsible for duties such as the timely dissemination of information and necessary administrative tasks as they occur during the semester. Tardiness: Points will be deducted if assignments are not turned in at the end of class on the due date. Your grade will be reduced by one letter for each twenty four hours the assignment is late. For example if you would have received an A- for the assignment, the grade assigned would be a B-. Exceptions for legitimate reasons (e.g. severe illnesses) must be discussed with the instructor.

Cell Phone Policy: All cell phones must be turned off before class. Assignments and Writing: All written assignments must be typed and in an organized format consistent with the information being presented. Particularly at the undergraduate level students are expected to have a highly developed writing style. Effective communication is a crucial component of todays competitive business environment. To this end, spelling, grammar and pronunciation will be strictly enforced and graded as part of the assignment. Exceptions will not be made. NO LATE ASSIGNMENTS (No assignment will be accepted late without prior arrangement with the Instructor or/and a documented medical excuse.) At the lecturers discretion acceptance of late assignments will incur a two point deduction per day including weekend days. However, assignments exceeding one class session will NOT be accepted.

ALL WORK MUST BE REFERENCED (Plagiarism carries an automatic zero for work presented).

IMPORTANT CLASS PROCEDURES 1. Lateness and tardiness attract a penalty; they affect performance and therefore grades. (See page 39 of the 2006 2008 bulletin.) 2. Quizzes will not be repeated. 3. Place all major assignments in a clean folder. 4. Submit all assignments in Times New Roman size, 12 Font, double spaced. 5. Use the APA Style for writing references. Get information on that style in the library or the English Department. 6. All work must be presented in Standard English. All errors will be penalized with loss of marks. 7. All assignments must be typed and submitted on or before the due date. 2 points will be deducted daily from all late assignments. If the assignment is late for more than two (2) days it will not be accepted. DISTANCE LEARNING POLICY________________________________________________ POLICY ON SERVER UNAVAILABILITY OR OTHER TECHNICAL DIFFICULTIES The university is committed to providing a reliable online course system to all users. However, in the event of unexpected server outage or any unusual technical difficulty which prevents students from completing a time sensitive assessment activity, the instructor will provide an appropriate accommodation based on the situation. Students should immediately report any problems to the instructor and also contact the UNISS eLearning Help Desk: http://uniss.ncu.edu.im/elearninghelp or 1-876-523-2064. The instructor and the UNISS eLearning Help Desk will work with the student to resolve any issues at the earliest possible time.

TECHNICAL REQUIREMENTS________________________________________________
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In addition to a competent level of computer and Internet literacy, there are some minimum technical requirement must be met to enable a successful learning experience. Please review the important technical requirements and the web browser configuration information at http://aeorionde.ncu.edu.im to ensure that your personal computer meets the outlined requirements.

COMMUNICATIONS__________________________________________________________ This online course has integrated communication tools that may be used for to facilitate interaction and communication. Other communication mediums such as email, instant messaging and web conferencing tools may also be utilized throughout the course. For more details please visit http://aeorionde.ncu.edu.lm/features. Interaction with Instructor: The instructor will communicate with students primarily using the Announcements Discussions tools. Students may send personal concerns or questions to the instructor via email or using the course messaging module. The instructor will as much as possible reply to students queries within two days.

LIBRARY SERVICES__________________________________________________________ Distance Learners will need an /AEorion user account to access all of the librarys electronic resources (reserves, journal articles, eBooks and search online databases) from off campus. For NCU students living close to one of our extension campuses, a valid NCU ID card is required to check out materials from the Library. For more information on library resources go to http://www.ncu.edu.lm/Iibrarv/

ASSIGNMENT SUBMISSION___________________________________________________ The eLearning system - AEorion DL, accepts only Microsoft Office documents. Please use the Assignments link on the course menu or see the icon on the designated page to upload assignments. You may click on the link for each assignment and follow the on-screen instructions to upload and submit your file(s). Bear in mind that you may only submit each assignment once, after which you should receive an onscreen confirmation. Please refer to the
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Help menu for more information on using this tool. Please note: each assignment link will be deactivated after the assignment due time. Additionally, unless stated otherwise, assignments are typically due at 11:59PM on the specified date. After your submission is graded, you may click each assignments Graded tab to check the results and feedback. For team project assignments, one group member will submit the assignment for the group and all group members will be able to view the results and feedback once its been graded.

NCU EMAIL__________________________________________________________________ Northern Caribbean University is aware of the efficiency, effectiveness and overall importance of communication between students and faculty/staff through electronic mail. At the same time, email raises some issue-s concerning security and the identity of each individual in an email exchange. The university encourages all official student email correspondence be sent only to a students NCU email address and that faculty or staff consider email from students official only if it originates from a NCU student account. This allows the university to maintain a high degree of confidence in the identity of all individual corresponding and the security of the transmitted information. NCU furnishes each student with a free email account that is to be used in all communication with university personnel. The University Information Systems Services Department at NCU also provides a method for students to have their NCU email forwarded to other accounts. Final Examination and Sectional: Students will be required to sit a final examination at the completion of the course. In order to sit this final examination, students MUST attend at least eighty percent (80%) of class sessions. This examination will represent forty per cent (40%) of your final grade. Pop quizzes are always possible and can occur without notice. Instructor Arrival Policy: If the instructor is not in the class at the scheduled start of the class, please wait thirty (30) minutes before leaving.

ADDITIONAL INFORMATION_________________________________________________ Helpful Skills for this course: Web Surfing, Basic E-mail, Word Processing, Microsoft Power Point Competence, and Public Speaking.

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EVALUATION________________________________________________________________ Grading Information/Course Work Weighting: Requirement Assignments Sectional I Sectional II Case Studies (2) W.D Carter Lecture Series Final Examination Total Marks/Percentage 10% 15% 15% 15% 5% 40% 100%

Grading Policy: A (90-100) A- (85-89) B+ (80-84) B (75-79) B- (70-74) C+ (65-69) C (60-64) C- (55-59) D (50-54) F (0-49) ALL WORK MUST BE REFERENCED APA STYLE. PLAGERISIM IS NOT ALLOWED! TEXTBOOK AND READING MATERIALS______________________________________

Financial Management Principles and Applications, 11/E Sheridan Titman, Arthur J. Keown, John D. Martin ISBN-10: 0132340356 ISBN-13: 978-0132340359 Publisher: Prentice Hall Copyright: 2010 Additional Supplementary Reading List
Keown. A. J.et al. (2005). Financial Management: Principles & Applications, (10th ed.) New Jersey, USA: Prentice Hall 11

Gallagher, T. et al. (2003). Financial Management Principles and Practice (3rd ed.). Boston, USA: Prentice Hall

Journals 1. 2. 3. 4. Harvard Business Review Wall Street Journal The Daily & Sunday Gleaner The Daily & Sunday Observer

Websites 1. http://www.mof.gov.jm/ 2. http://www.jamstockex.com/ Rubric for Assessment of Written Assignments

Rating Criteria and weighting Headings & Introduction Organization and flow of information Poor Fair Good Very Good Students Score &Max score /5

Absent/Poor

Fairly Relevant

Proper layout; relevant Organized; events and material are clear

Not organized, material and events do not flow logically

Quality & applicability of information

Poor quality; material hardly applicable

Grammar & spelling

Very frequent grammar and/or spelling errors

Some organization, events fairly organized; beginning and end hazy Reasonable quality; connections can be made to subject Moderate volume grammar and spelling errors

Very relevant material; clear link and subject

Outstanding layout; great flow and relevance Very good organization, events and material are logically ordered, very clear beginning and end Excellent supporting details; strong and direct links to subject Excellent grammar and spelling

/15

/70

Negligible errors

/5

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Neatness and general presentation

Illegible writing, frequent crossouts; defaced pages

Fairly legible writing, few corrections; little soiling

Overall legible writing; well-formed characters; papers clean and neatly assembled, illustrations provided

Excellent writing; very clean paper; neat and attractive assembly, outstanding illustrations provided

/5

Rubric for Assessment of Oral Assignments

ASSIGMENT: Presenter(s): Presentation Content Date:

Components Definition, interpretation of the topic Soundness of argument (brief description) Research organization (brief description) Relevance & potential of recommendation for nation building Ability to start and continue a logical progression of thought. Use of supporting evidence and authors of research literature. Eloquence, Persuasion Pronunciation of words Use of language Pitch & modulation Control of emphasis Eye contact Facial expression Use of hands

Possible score 10 10 10 20 10

Actual

Remarks

Manifestation of reasoning

Sub total Delivery

60 5

Voice Gesture

5 5

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Stance Team work

Assurance & confidence Evidence of working collaboratively, willingness to fill in on short notice Carefully allocate time for introduction, body, conclusion, accommodation of questions. Recognition of opposing position with dignity. Exhibition of poise and confidence in responding to questions.

5 5

Use of time

Handling of questions

Use of visual & colour Sub total: Total : Ratings: 49- 59;Poor,

5 40 100 70-80 above average; 81-89 good;

60-69- average;

90-100 excellent

DISCLAIMER: The Department reserves the right to make adjustments to this course outline as deemed necessary.

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