SCHOOL OF ECONOMICS, FINANCE & BANKING
UUM COLLEGE OF BUSINESS
No
.
Information on Course
1. Course Name :
ADVANCED FINANCIAL MANAGEMENT
2. Course Code: BWFF2043
3. Name(s) of Academic Staff: DR. HANITA KADIR SHAHAR
DR. SABRI NAYAN
MRS. FIKRIYAH ABDULLAH
MR. SHAMSUL BAHRAIN MOHAMED ARSHAD
MRS. RUSMAWATI ISMAIL
MRS. SABARIAH NORDIN
MRS. SHAHRIZA OSMAN
4. Rationale for the inclusion of the course in the programme:
This is one of the core courses offered for B. Fin students.
5. Semester/Year Offered:
3/2
6. Total Student Learning Time (SLT)
L = Lecture
Face to face
L
28
14
SL
TLT
71.6
118.4
T = Tutorial
P = Practical
O = Others
9. Credit Value: 3
10. Pre-requisite (if any):
BWFF2033 FINANCIAL MANAGEMENT
11. Objective(s) of Course :
Students are expected to
1.
understand the key concepts and theories of financial management as
a whole.
2.
acquire knowledge and skills necessary to solve different types of
problems in finance.
3.
develop long-term investment or financing analysis on business and
non-business organization.
12. Course Learning Outcomes:
Upon completion of the course, students are able to
1. identify the concepts and theories related to financial management.
(C1, A1,P1)
2. describe decision making techniques discussed in this course.
(C1,A1, P1)
3. apply financial concepts, tools and techniques to solve appropriate
hypothetical and real world problems. (C3, A3, P1).
4. evaluate investment decisions in pursuit of maximizing shareholders
wealth. (C4, A3, P2)
5. analyze valuation on securities i.e. shares and bonds. (C4, A3, P1)
13. Transferable Skills:
Communication, Critical Thinking and Problems Solving, Team Work and
Leadership.
14. Teaching-learning and assessment strategy:
Mixed method between teacher-centred and student-centred.
15. Synopsis:
This is the follow-up course of Financial Management, where the aim is to enhance
students understanding of the investment decision-making process and the long
2
term financing process. It reviews the concept of time value of money as a
preparation so that they can apply the concept in other topics such as securities
valuation, capital budgeting and cost of capital. In addition, leverage and capital
structure, dividend policy and international financial management will also be
discussed.
16. Mode of Delivery:
Lectures, discussions and presentation.
17. Assessment Methods and Types:
Coursework (50%)
Final exam (50%)
18. Mapping of the course/module to the Programme Aims
Course Learning Outcomes
Programme Aims
The aims of the Bachelor of Finance
(Honours) programme are to produce
competent
and
knowledgable
graduants inthe area of financi in
accordance with the human capital
needsof the domestic and financial
industry.
22. Mapping of the course/module to the Programme Learning Outcomes
Course Learning Outcomes
Programme Learning Outcomes
Identifying and explaining the
concepts and theories related to
financial
management,
financial
markets, investment, international
finance, personal finance and other
areas of finance.
3
Applying financial concepts, tools and
techniques in solving real world
financial
problems
faced
by
companies in the pursuit of
maximizing shareholders wealth.
Advising the industries and capital
market players on issues related to
finance.
Practicing
and
carrying
out
professional ethical code of conduct
within the financial discipline.
Communicating effectively orally and
in writing.
Working as a leader or a team member
in multi disciplinary teams and
cultures.
Evaluating and making financing and
investment decisions at national and
international level.
Applying current state of the art
information technology solutions in
day-to-day operations whist pursuing
knowledge at a higher level in finance
as well as in other disciplines.
Displaying entrepreneurial skills and
capabilities relevant to finance.
34. Content outline of the course/module and the SLT per topic
Topic
1.0
TIME VALUE OF MONEY
REVIEWS
Learning
Outcome
s
1,3
An Overview of the course
The Relationship between
Financial Management
course and Advanced
Financial Management
4
Face to Face
SL
TLT
P/O
course.
The Objectives of learning
Advanced Financial
Management.
Present Value and Future
Value
Single Amount
Annuities
Perpetuities
Uneven Cash
Flows
2.0 BASIC OF VALUATION AND
BOND VALUATION
3.0
2,5
12
Valuation Concepts
Intrinsic Value
Characteristics of Bonds
Types of Bonds
Bond Valuation
Yield to Maturity
Important Factors in Bond
Relationships
STOCK VALUATION
2,5
Fund Raising in the Capital
Market
Features of Preferred Stock
Preferred Stock Valuation
Preferred Stockholders
Expected Rate of Return
Characteristics of Common
Stock
Common Stock Valuation
Single Holding
Period
Constant Growth
Dividend Model
5
12
4.0
COST OF CAPITAL
5.0
Supernormal
Growth
Common Stockholders
Expected Rate of Return
12
2,3,4
12
Definition and of costs of
capital concepts
Determining individual cost
of capital
Bond
Preferred Stocks
Common Stocks
Weighted average cost of
capital (WACC)
Weighted marginal cost of
capital (WMCC)
Making investment
decisions.
TECHNIQUES IN CAPITAL
BUDGETING
1,3,4
Introduction
to
capital
budgeting
Payback period
Discounted payback period
Net present value (NPV)
Profitability index (PI)
Internal rate of return (IRR)
Complications in capital
Budgeting: Capital rationing
and mutually exclusive
projects
Time disparity
Size disparity
Unequal lives
6.0
CASH FLOWS IN CAPITAL
BUDGETING
12
2,3,4
12
1,2,3
28
14
42
84
Face to Face
SL
TLT
58.4 102.2
Business and financial risk
Break-even analysis
Operating leverage
Financial leverage
Combined leverage
Optimal capital structure
EBIT- EPS analysis
DIVIDEND POLICY
Relevant cash flow
Initial outlay
Annual cash flow
Terminal cash flow
Replacement and expansion
of project
Decision making in capital
budgeting
LEVERAGE AND CAPITAL
STRUCTURE
2,3,4
Dividend payment versus
profit retention
Does dividend policy affect
stock prices
The dividend decision in
practice.
Stock dividend and stock
splits.
Stock repurchases
Assessment
Course work
50%
43.8
Final examination
50%
3
Total Notional Hours
7
46.8
13.2
16.2
71.6 118.4
Credit Hours
3.0
Main reference :
Ross, S., Westerfield, R., Jordan, B., Lim, J, Tan. (2012). Fundamentals of Corporate
Finance (Asian Global Edition.). Singapore: McGraw-Hill.
Other references:
Gitman, L.J., and Zutter, C.J. (2012). Principles of Managerial Finance (13th ed.). Boston:
Prentice Hall, Inc.
Keown, A. J., Martin, J. D., Petty, J. W., and Scott, D. F., Jr. (2005). Financial
management: Principles and applications (10th ed.). New Jersey: Prentice Hall, Inc.
Grading Points
Numerical Marks
90 100
80 -89
75 79
70 74
65 69
60 64
55 59
50 54
45 49
40 44
35 39
00 34
0.00
Alphabet Grades
4.00
4.00
3.67
3.33
3.00
2.67
2.33
2.00
1.67
1.33
1.00
0.00
0.00
Additional Information:
Email: [email protected]
Extension number: 6841
Room number: 2.52 Economics Building
A+
A
AB+
B
BC+
C
CD+
D
F
X
Email: [email protected]
Extension number: 6795
Room number: 038 Economics Building
Email: [email protected]
Extension number: 6920
Room number: 364 COB Main Building
Email: [email protected]
Extension number: 6867
Room number: 027 COB Main Building
Email: [email protected]
Extension number: 6443
Room number: 276 COB Main Building
Email: [email protected]
Extension number: 6880
Room number: 234 COB Main Building
Email: [email protected]
Extension number: 6820
Room number: 184 Economics Building
