TCH302. Introduction. Hien

FUNDAMENTALS
OF FINANCE
CODE: TCHE302
CLASS: JIB58-VJCC/FTU
I N S T R U C T O R : A S S O C . P R O F, D R . N G U Y E N T H I H I E N
COURSE DESCRIPTION
• Providing a comprehensive overview of financial world, financial

system, financial markets and institutions.
• The theory and problem solving will be stressed covering: time
value of money, financial analysis and planning, working capital
management, capital budgeting, and long-term financing.
• Personal finance and small business decision making, risk and
return/award analysis are also centrally covered within this course.
COURSE LEARNING OBJECTIVES
• Financial System: Be able to describe its structure, function, and operation.
• Financial Statement Analysis: Draw inferences about a firm’s performance by examining its financial
statements. Be able to compute the cash flows of the firm, since these are not directly reported in the financial
statements.
• Time Value of Money: Be able to compute present and future values of single and multiple cash flows, know the
differences in how interest rates are computed and quoted, and be able to amortize loans.
• Risk and Return: Know how to measure risk, how to diversify risk by forming portfolios, and how returns from
investments are related to risk.
• Valuation: Know the different features of two major types of financial securities: fixed income securities
(bonds) and equity securities (stocks). You should also be able to value these securities.
• Capital Budgeting and Cost of Capital: Be able to compute cash flows from investments and know how to make
financially sound investment decisions with assets.
• Working Capital: Explain ways in which a firm can effectively manage its working capital.
• Financial Management: use the tools above to identify and propose sound financial management decisions.
READINGS MATERIALS
• 1. Text: Financial Management: Principles and Practice, by Timothy J. Gallagher, Freeload

Press Publishers, fifth edition (2010), ISBN 1-930-78978-5.
• 2. Fredric S. Mishkin, The economics of Money, Banking and Financial Markets, 9th edition
• 3. Students are expected to read News, Journals and Magazines of banking and finance
• 4. Other materials, such as outside readings or additional PPT slides, may be added throughout
the term; these will be announced in class. Such materials will be distributed electronically;
you will generally be required to print these materials in advance and bring them to class for
discussion.
TENTATIVE COURSE SCHEDULE
Class Topics Tentative schedule
Class 1 COURSE INTRODUCTION; Chapter 1: FINANCE AND THE FIRM 8/11
Class 2 Chapter 2. FINANCIAL MARKETS AND INTEREST RATES/ Chapter 8. TIME 10/11
VALUE OF MONEY
Class 3.4 Chapter 2,8 Cont’d further readings (chapter 4,5, F.S.Mishkin (9 th Edition)) 15,17/11
Class 5 Chapter 3. Financial Institutions 22/11
Class 6 Chapter 3. Cont’d 24/11
Quick Test No 1
Class 7 Chapter 4. Reviewing of Accounting 29/11
Class 8 Chapter 5. Analysis of Financial Statements 1/12
Class 9 Chapter 6. Forecasting for financial planning 6/12
Class 10 Chapter 7. Risk and return 8/12
Class 11 Chapter 9. The cost of capital 13/12
Quick Test No2
Class 12 Chapter 10 Capital budgeting decision methods 15/12
Class 13 Chapter 11. Estimating Incremental cash flows 20/12
Class 14 Chapter 13. Capital structure basis 22/12
Class 15 Chapter 17, 18,19 Working capital management 27/12
COURSE ASSESSMENT
The course assessment is based on the following course requirements: in-class
quick test, assigned questions and problems, quizzes and attendance/participation, and is computed as follows:
Middle test 30 points

Final Exam 60 points
Assigned questions and problems, quizzes, attendance/participation 10 points
Maximum Total 100 points

CHAPTER 1
INTRODUCTION ON FINANCE
LEARNING OBJECTIVES
 The field of finance

 The duties of financial managers
 The basic goal of a business firm
 Legal and ethical challenges for financial
managers
 Forms of business organization
Chapter 1 8
Gallagher 6e: © Textbook Media Press
Gallagher 6e: © Textbook Media Press 9
MONEY VS FINANCE?
ACCOUNT VS FINANCE?
FINANCE VS FINANCING?
THE FIELD OF FINANCE
 Financial Management
– Analyze and forecast a firm’s
performance
– Evaluate investment opportunities
 Financial Markets and Institutions
– The flow of funds through institutions
– Markets in which financial assets are sold
– Impact of interest rates on that flow of
funds
 Investments
– Locate, select, and manage money
Chapter 1 producing assets. 13
Gallagher 6e: © Textbook Media Press

TCH302. Introduction. Hien

Uploaded by

Copyright:

Available Formats

TCH302. Introduction. Hien

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

TCH302. Introduction. Hien

Uploaded by

Copyright:

Available Formats

FUNDAMENTALS

• Providing a comprehensive overview of financial world, financial

• 1. Text: Financial Management: Principles and Practice, by Timothy J. Gallagher, Freeload

Middle test 30 points

Maximum Total 100 points

 The field of finance

You might also like