BRAC BUSINESS SCHOOL

MBA Program
Course Outline for SPRING 2017
[Tell me and I forget, teach me and I may remember, involve me and I learn.]
Benjamin Franklin

Course Title:

Financial Management (FIN 501)

Section: 01

Instructor:

Riyashad Ahmed, Assistant Professor of Finance, BBS, BRACU.

Consulting Hours:
Day
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday

Class
Schedule:

Section
01

Time
3.30 PM 5.30 PM
10.45 AM 12.30 PM & 3.30 PM 4.30 PM
DAY OFF
10.45 AM 12.30 PM & 3.30 PM 4.30 PM
3.30 PM 6.30 PM
9.00 AM 9.30 AM & 12.15 PM 1.00 PM
5.30 PM 6.30 PM

Day
SATURDAY

Office Room:

UB 20710

E-mail:

riyashad@bracu.ac.bd

Time
06.30 PM 9.30 PM

Venue
UB 20701

Course Aims & Objectives

This is the foundation core course of Financial Management in the MBA program. Its
purpose is to equip students with the basic tools and techniques necessary to be a
successful financial manager or a general manager with a good understanding of the basic
principles of finance.

Riyashad Ahmed, Assistant Professor, BRAC Business School.

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Major topics include financial analysis and planning, valuation, capital budgeting, capital
structure and risk management. Special emphasis is given on integration of the concepts
of financial management into a total systems approach to business decision-making.

Learning Outcomes
Upon successful completion of this course, students should be able to:
Understand the time value of money and calculate present value
Determine the fundamental price for common stock & preferred stock
Use the Capital Asset Pricing Model (CAPM) to quantify the risk-return tradeoff
Determine a firms weighted average cost of capital (WACC)
Evaluate alternative techniques for analyzing project opportunities & capital budgeting.

Course Text:
Core Textbook:
Author
Eugene F.
Brigham
&
Joel F.
Houston

Title
Fundamentals of Financial
Management

Edition & Year Publisher

12th Edition,
2009

ISBN

SOUTHISBN:
WESTERN, 0324597711
CENGAGE
Learning

Reference Text:
Financial Management: Principles and Applications, Keown, Arthur J, Martin,
John D., Petty, William J., Scott, David F. Pearson Prentice Hall, 10Th Edition.
Managerial Finance by Lawrence J. Gitman, 11th Edition, Pearson Education
Fundamentals of Corporate Finance, Ross, Westerfield & Jordan, 8th Edition,
McGraw-Hill.

Riyashad Ahmed, Assistant Professor, BRAC Business School.

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Exams & Grading Policy

Exams will contain multiple choices, short theoretical questions, problems and case
analysis. The date for each examination will be announced one week before the exam.
There is absolutely NO provision for make-up quizzes. Make-up mid-term exam can be
arranged only in exceptional circumstances with adequate proof. The format and the
difficulty level of the makeup midterm will be much harder than the regular exam. BBS
rules will be applied regarding using unfair and unethical means (including cheating,
plagiarism) in the exams, quizzes and assignments. Cell phones must be switched off
during exams. Following grading scale will be strictly followed:
Marks (%)
90% and above
85 - 89.99
80 84.99
75 79.99
70 74.99
65 69.99
60 64.99
57 59.99
55 56.99
52 54.99
50 51.99
Less than 50

Grades
A
AB+
B
BC+
C
CD+
D
DF

Marks Allocation
Class attendance..5%
Quizzes15%
Term Paper..20%
Mid-term....20%
Final Exam...40%
Total

100%

Riyashad Ahmed, Assistant Professor, BRAC Business School.

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Teaching Strategies
Class Attendance
Student attendance is absolutely mandatory as exams will be based on the materials
covered in the class. Attendance will be taken in each lecture session which will contribute
to the 5% of your total grade. Please turn off your cell phone before the class starts. You
are strongly encouraged to actively participate in class discussion.
Quizzes
All quizzes will be announced. There will be a total of 4 quizzes. The best 3 will be used for
grading purpose.
Term Paper
There will be a group term paper needs to be completed. Each group (consisting of 4 to 5
members) has to submit the term paper in due time. The topic of term paper, formation of
group and the detail guideline for the completion of term paper will be discussed
thoroughly in the class.
Mid-term Examination
The mid-term examination will include descriptive questions, MCQ, short notes and
problem solving. This examination will test your knowledge of materials discussed in class
and the readings until the time of the mid-term examination. The precise format and the
marks distribution in different sections of mid-term exam will be discussed in the class on
advance.
Final Examination
As per the university rule, the final exam will be comprehensive in nature. The exam will
have both descriptive and problem solving parts which will be integrated in nature and will
test your overall understanding of the concepts of finance that you have learned in the
entire term. The precise format and the marks distribution in the different sections of final
exam will be discussed in the class on advance as well.

Academic Integrity
Each student in this course is expected to abide by the BRAC University Code of
Academic Integrity. Any work submitted by a student in this course for academic credit
must be the student's own work. If copying occurs, both the student who copied work from
another student and the student who gave material to be copied will both automatically
receive a zero for the assignment. Penalty for violation of this Code can also be extended
to include failure of the course and University disciplinary action. The same rules and
Riyashad Ahmed, Assistant Professor, BRAC Business School.

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regulations are also applicable in the Mid-Terms and Final examinations. Cell phones are
absolutely prohibited in exam sessions.

Course Contents & Tentative Class Schedule

Lecture
Weeks
Week 1
Week 2
Week 3

Week 4

Lecture Topic
Introduction with students and in-detail discussion
of course outline
Definition, goal of financial manager, the agency
problem, forms of business organizations.
Review of financial statements and annual reports
balance sheet, income statement, cash flow and
owners equity statements, accounting income vs.
cash flow.
Five major types of ratio analysis, cross sectional
and trend analysis

Week 5

Concept of Beta, SML, CAPM, risk-return

definition, relationship and their types, portfolio
return and risk.
Week 6 Definitions and concepts of discounting,
compounding, present and future value, perpetuity,
annuity, loan amortization.
Week 7
MID TERM
(Date, Time & Venue will be announced in the
class)
Week 8 Different types of bonds, valuation of bonds, Yield
to maturity, yield to call, current yield, important
relationships among the variables.
Week 9 Different types of stocks, stock market transactions
and their valuation methods, constant growth, nonconstant growth and corporate valuation model.
Week 10 Preparing pro-forma income statement and
balance sheet.
Lecture
Lecture Topic
Weeks
Week 11 Definition, calculation of cost of different capital
components, WACC.
Week 12 Project classifications, NPV, IRR, MIRR, PI,
payback and Discounted payback period, NPV
profile, decision criteria.
Week 13

Assigned Readings

Chap 1: Overview of
Financial management
Chap 2: Understanding
Financial Statements and
Cash Flows
Chap 3: Evaluating a
Firms Financial
Performance
Chap 6: Risk & Rate of
Return
Chap 5: The Time Value
of Money

Chap 7: Bonds and Their

Valuation
Chap 8: Stocks and Their
Valuation
Chap 17: Financial
Planning & Forecasting
Assigned Readings
Chap 12: Cost of Capital
Chap 9: Capital
Budgeting Decision
Criteria

Comprehensive Final Exam

Note: The instructor reserves the right to make changes to the syllabus if necessary.
Riyashad Ahmed, Assistant Professor, BRAC Business School.

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** Good Luck and Have a Wonderful SPRING 2017 Term**

Riyashad Ahmed, Assistant Professor, BRAC Business School.

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