FINANCIAL MANAGEMENT

Course Description

This is a two pronged course. The first part covers analyses of the time value of money. This part includes illustrations with specific reference to current cases regarding the management of cash. The second part deals with the procedures and instruments that prevail in the relationship between the firm and money and capital markets. Particular attention is devoted to the stock exchange including regulations pertaining to initial public offerings and listings. Also, this course will give the students detailed information about capital budgeting, capital market line, security market line, risk and return, cost of capital, financial leverage and capital structure policy (i.e. long-term financial policy) and short-term financial planning.

FINANCIAL MANAGEMENT

Evaluation Tools (Active Term)

Course outcomes

1. 01 Understanding Stock valuation
2. 02 analyze investment alternatives
3. 03 Understanding the Capital Market Line CML
4. 04 Understanding the Security Market Line SML
5. 05 risk and return assessment

Course Syllabus

Reference Books & Course Materials

1. 01 Ross, S., Westerfield, R. and Jordan, B., 2020. Essentials of corporate finance. 11th ed. McGraw Hill.

Learning Outcomes

1. L01 Understanding Stock valuation
2. L01 Critically evaluate how bond valuation, interest rate dynamics, and market structures influence stock prices and corporate governance practices, by integrating knowledge of bond yields, dividend-based valuation models, and election methods of corporate directors. SOLO 5
3. L01 Apply and critically evaluate investment appraisal techniques—including NPV, IRR, payback period, average accounting return, profitability index, and return on investment—by comparing their results and limitations to support strategic financial decision-making. SOLO 4
4. L02 analyze investment alternatives
5. L03 Understanding the Capital Market Line CML
6. L03 Analyze and evaluate the relevant and expected cash flows of a proposed investment project, and apply net present value (NPV) techniques to determine its financial viability. SOLO 4
7. L04 Understanding the Security Market Line SML
8. L04 Evaluate the historical risks and returns of key investment types, calculate investment performance, and assess the implications of market efficiency for financial decision-making. SOLO 5
9. L05 risk and return assessment

Program Outcomes

1. To be able to interpret and evaluate the discussions on the theoretical aspects of International Banking and Finance.
2. To be able to identify regional and global problems that directly or indirectly affect financial issues, to develop solutions and strategies based on evidence and research.
3. To be able to define, evaluate and interpret the classical and current theories of international banking and finance policies and strategies, differences and relationships between them.
4. To have social, scientific and ethical values in the collection, interpretation, announcement and application of data in the field of international banking and finance and to assimilate these values.
5. To be able to follow, understand, interpret and analyze the changing trends in banking and financial activities in the world at an advanced level, and apply innovation and innovative working principles.
6. To be able to set goals and take initiatives to achieve them, to be creative and open to criticism and to have professional competencies at an advanced level.
7. To have an advanced level of foreign language to follow and use the information in the field and to communicate with colleagues.
8. To have advanced computer software and hardware knowledge required by the field of International Banking and Finance, and to be able to use information and communication technologies at an advanced level.
9. To be able to use theoretical and practical knowledge gained in the field of International Banking and Finance at an advanced level.
10. To be able to benefit from other fields that form the basis of financial policies and to understand the interaction between these disciplines.
11. To be able to examine the basic problems in the field of International Banking and Finance with scientific methods, to interpret and evaluate the data.
12. To be able to take responsibility individually and as a team member to solve complex problems encountered in practice related to International Banking and Finance, and to produce solutions.
13. To be able to critically evaluate the knowledge and skills acquired in the fields of International Banking and Finance, to determine learning needs and to carry the learning process to an advanced level.
14. To inform experts or non-experts on financial issues, to share their ideas and problems and solution methods by supporting them with quantitative and qualitative data.

Po-Lo Matrix