Introduction to Finance

Course Code: FIN201

Instructor: Jesmin Mannan
Course Title: Introduction to Finance
Office: 4007
Email: [email protected]
Introduction
Class Time: MW 2.00 pm - 3.30 pm
Course Type: Core Course
Class Room: BC2012
Academic Session: Summer 2021
Office Hours:
Section: 05
Blackboard Address:
Credit Value: 3 Credit Hour
http://oldcmos.iub.edu.bd/sb/
Total Marks: 100

Course Summary:
This course will provide an introductory overview of the finance function in business.
Various core concepts of financial management will be explained. Basic principles of
financial management will be systematically examined with particular emphasis on financial
statement analysis, forecasting and planning, valuation of financial assets, investment in long-
term assets and capital structure.

Program Learning Outcomes (PLOs) of BBA in Finance

1. Identify and classify financial information; present and interpret financial statements and
utilize technology for application purpose.
2. Managing financing and investment decision of corporate in order to achieve good
governance.
3. Be able to apply best investment strategy by analyzing various investment options.
4. Be able to manage risk and return in domestic and global market condition.
5. Evaluate and articulate ethical considerations in financial decision-making.
6. Communicate financial knowledge effectively.
Course Objectives (COs):
 Student will be introduced with the basic concepts of finance and its various aspects that
are fundamental to progress with the discipline.
 Basic principles of financial management will be systematically examined with
particular emphasis on
 Financial statement analysis, forecasting and planning
 Valuation of financial assets
 Investment in long-term assets
 Capital structure.
Course Learning Outcomes (CLOs):
1. Discuss the importance of functions of finance of a business firm.
2. Match accounting with finance and review financial statements.
3. Illustrate how sources and uses of funds in a business are linked with the concepts of time
value of money, cost of capital, capital structure and capital budgeting techniques and
apply them.
4. Examine preliminary investment decision making process by considering risk & return.
5. Evaluate financial data and present them.
Mapping Alignment of CLOs and PLOs
PLO1 PLO2 PLO3 PLO4 PLO5 PLO6
CLO1 2
CLO2 3
CLO3 3
CLO4 2
CLO5 3
3-Strong Correlation, 2- Medium Correlation, 1- Low Correlation
 Course Plan and Mapping
Bloom’s Taxonomy
No. Topics Specific Outcomes Readings Teaching Assessment
CLO domain/level
Strategies
Introduction to Course Lecture Class participation
1 Explanation of the Course Outline 1 Understanding
the course Syllabus
Goals and Functions of Financial Lecture Class participation, Quiz,
Preliminary Management; Understanding how Mid-Term Exam
concepts of companies make financing and
2 Chapter-1 1 Understanding
financial investment decision creating
management shareholder value; The Agency Problem
and Functions of Corporate Governance
Role of Financial Markets; Lecture, Class participation, Quiz,
Financial Understanding Functions of Financial Problem Mid-Term Exam
3 Chapter-1 1 Understanding
Markets markets; Main Financial Market Solving
Participants
Financial Analysis & Planning; Lecture Class participation, Quiz,
Language of Understand basic concepts of finance; Mid-Term Exam
4 Chapter-2 2 Remembering
Finance Understanding how accounting works as
the language of finance
Review of Financial Statements; Lecture, Class participation, Quiz,
Financial
5 Analyzing income statements, balance Chapter-2 Problem Mid-Term Exam 2 Remembering
Statements
sheet and cash flow statements Solving
6 Chapter 1 & 2 Quiz 1
Financial Analysis; use of financial ratios Lecture, Case Class participation, Quiz,
Financial
7 to measure key corporate finance Chapter-3 Study Mid-Term Exam, 2 Apply/Analyzing
Analysis
concepts Assignment
Analyze trend; Understand the impact of Lecture, Class participation, Quiz,
Financial
8 inflation and disinflation on financial Chapter-3 Problem Mid-Term Exam, 2 Apply/Analyzing
Analysis
statements Solving Assignment
 Understand the essence and importance Lecture, Class participation, Quiz,
Time Value of of Time Value of Money; Problem Mid-Term Exam
9 Chapter-9 3 Understanding
Money Learn to calculate Future Value, Present solving
Value
Relationship between Future Value and Lecture, Class participation, Quiz,
Time Value of Present Value; Problem Homework, Mid-Term Understanding/
10 Chapter-9 3
Money Relationship between FV/PV of a single solving Exam Apply
amount and FV/PV of Annuity
Lecture, Class participation, Quiz,
Time Value of Determining Annuity Value; yield on Understanding/
11 Chapter-9 Problem Mid-Term Exam 3
Money investment Apply
solving
Lecture, Class participation, Quiz,
Time Value of Special considerations in Time Value of Problem Mid-Term Exam 3 Understanding/
12 Chapter-9
Money Money solving, Case Apply
Study
Class participation, Quiz,
13 Chapter-3 & 9 Quiz-2
Mid-Term Exam
Chapters- 1, 2,
14 TBA Midterm Exam
3&9
Using the concept of Time Value of Lecture, Class participation, Quiz,
Valuation of
15 Money to determine the valuation of Chapter-10 Problem Final-Term Exam 3 Apply/Analyzing
Financial Assets
financial assets solving
Valuation & Rates of Return; concept of Lecture, Class participation, Quiz,
yield to maturity; determine and Problem Final-Term Exam
Valuation of
16 estimate the required rate of return of a Chapter-10 solving 3 Apply/Analyzing
Financial Assets
financial asset; various calculation
related to valuation
Various concepts of cost of capital; use Lecture Class participation, Quiz,
17 Cost of Capital discount rates to incorporate risks into Chapter-11 Final-Term Exam 3 Apply/Analyzing
the valuation
 Lecture, Class participation, Quiz,
Estimating required rate on equity;
Problem Final-Term Exam
18 Cost of Capital Calculating Weighted Average Cost of Chapter-11 3 Apply/Analyzing
solving
Capital (WACC)

Long-term financing plan for Lecture Class participation, Quiz,

Chapter-12
Capital investment; forecasting future cash Final-Term Exam
19 3 Evaluating
Budgeting flows for investment decision
Quiz 3: Chapter 10, 11
Calculating NPV and IRR to make Lecture, Class participation, Quiz,
Capital
20 investment decisions and illustrate them Chapter-12 Problem Homework, Final-Term Evaluating
Budgeting 3
with several examples. solving Exam
Risk and Capital Budgeting; the risk Lecture, Brain Class participation, Quiz,
21 Risk in Finance associated with capital budgeting Chapter-13 Storming, Final-Term Exam 4 Evaluating
decision making; various types of risk Case Study
22 Risk and Capital Budgeting; simulation Lecture, Class participation, Quiz,
Risk in Finance models Chapter-13 Problem Final-Term Exam 4 Evaluating
Quiz 3: Chapter 12 & 13 solving
23 Assignment Presentation Presentation Presentation & VIVA 5 Apply/Evaluate
24 Final Syllabus Review Class
Chapter 10,
25 TBA Final Exam
11, 12, 13
PEDAGOGY:
Teaching pedagogy will include lectures, video clips, problem solving, case study, presentation, etc.

COURSE EVALUATION:
CIE- Continuous Internal Evaluation SMEE- Semester Mid & End
(60 Marks) Examination (40 Marks)
Class Quizzes Project Viva Midterm Final
Total Marks = 100 Participation (Four) Report
10 20 20 10 20 20
Bloom’s Category
Remember 2 2
Understand 2 10 3 3 5 5
Apply 2 5 5 3 5 5
Analyze 2 5 5 5 5
Evaluate 2 5 4 5 5
Create

TEXT BOOK:
 Foundations of Financial Management by Block S. B., B., Hirt G., A., and Danielsen B., R.;
17th Edition (2019), Published by McGraw-Hill Education.

RECOMMENDED REFERENCE TEXT:

 Financial Management: Principles and Applications by Titman S., Keown A. J. and Martin
J. D.; 13th Edition (2018), Prentice-Hall International.
 Fundamentals of Financial Management by Horne J. V. and Wachowicz J. M.; 13th Edition
(2009), Prentice-Hall.
 Relevant handouts from CFA curriculum.

GRADING POLICY:
The following scheme will be applied in assigning final grade for the course.

Grade Percentage Grade Percentage

A 90 and above C 60 to less than 65
A- 85 to less than 90 C- 55 to less than 60
B+ 80 to less than 85 D+ 50 to less than 55
B 75 to less than 80 D 45 to less than 50
B- 70 to less than 75 F Less than 45
C+ 65 to less than 70

ACADEMIC INTEGRITY POLICY:

 If any student misses the final exam without prior notice, the student will receive "F" and
his/her final grade will be “F”, even the particular student has scored a pass mark by
attending all the quizzes and midterm.
 Students are advised to refrain from any type of cheating and/or plagiarism during
assignment preparation and homework submission. Any student acting otherwise will
receive “F” in the course. School of Business, IUB, maintains a zero tolerance policy regarding
violation of academic integrity
5
UNFAIR MEANS DURING EXAM:
Students are not allowed to keep bags, handouts, books, mobile phones, smart watches or any other smart
electronic devices with them during any exam. Students are advised to keep everything in the front of the
classroom before the exam starts. Please note that, just carrying any smart electronic devices (even if the
device is turned off or put it in silent mode) during the exam will be considered as “cheating”. Moreover,
during the exam, anything written on hand palms (or anywhere else) and carrying paper materials (whatever
is written/ whether used or not) will be considered as “cheating”. Any sorts of “cheating” will result in “F”
grade with no exception. During the exam, students are only allowed to carry pen, pencil, eraser, sharpener,
ruler, highlighter and calculator in a clear plastic bag.

INCOMPLETE (‘I’) GRADE:

Awarding of Incomplete or ‘I’ grades should be strongly discouraged. ‘I’ will only be allowed for
students who have a valid reason (ascertained by the senior management).

WITHDRAWAL (‘W’):
A ‘W’ grade means withdrawal. A student may decide to withdraw from a course by the deadline.

CHANGES OF GRADE:
Change of grade is strongly discouraged. However, an instructor may request a change of grade when
a computational or procedural error occurred in the original assignment of a grade. Instructor must
submit the ‘Grade Change Form’ to the respective program office within one month of submitting the
final grade rolls.

OTHER IMPORTANT INSTRUCTIONS:

 Course content may vary slightly. These variations will be announced in advance.
 No makeup examinations (quiz, midterm, final) will be taken.
 There will be four (4) quizzes. Two (2) before midterm and two (2) after midterm. Best two
quizzes will be counted. One from before mid and another one after mid. An average of all
quizzes will be counted if the student misses any quiz.
 Assignment/Project have to be submitted on due date. Failing to submit on time will be
penalized.
 Students are requested to switch off their cell phones inside the classroom.
 Remember, class attendance is very important. You need to inform the course instructor for
any foreseeable absences and submit a written application if you miss more than three
consecutive classes.

BLACKBOARD:
 In addition to class teaching, course outline, lecture PowerPoint, announcements and other
information are placed on the blackboard page. Students are advised to check the course
blackboard page and download the required materials from MY SB: Log on to MY SB >
http://oldcmos.iub.edu.bd/sb/

Good Luck