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TARUMANAGARA UNIVERSITY
Master of Management Program COURSE SYLLABUS

FINANCIAL MANAGEMENT
2009 Textbook: Keown, Arthur J, David F Scott, Yr, John D, Martin, and J. William Petty, 2005, Financial Management. 10th Edition, Prentice Hall, [KFM]

Other references: 1. Madura, Jeff, 2003. International Financial Management, 7th Edition, Thomson South-Western. 2. Ross, Stephen. A., Randolph W. Westerfield and Jeffrey Jaffe, 2005. Corporate Finance. 7th Edition, McGraw Hill. [RCF] Instructors: 1. Imo Gandakusuma, MBA

COURSE DESCRIPTION AND OBJECTIVE Financial Management deals with the maintenance and creation of economic value or wealth. It focuses on decision making with a special attention on creating wealth. In general, there are three groups of financial decision: investment, financing, and dividend decisions. Investment decisions involve allocation of scarce resources across competing uses. Financing decisions involve raising funds to finance the investment projects. Dividend decisions involve reinvesting cash back to the business or returning cash to shareholders. The objective of this course is to give the students analytical and problem solving skills in finance from the point of view of management and investors. In this setting, some basic finance tools are important. The tools are: financial statement analysis, mathematics of finance (present value, future value, annuity, perpetuity, etc), risk-return models, and valuation models. In addition, potential conflict of interests among the actors (such as managers vs shareholders and shareholders vs bondholders) are also recognized. To facilitate active learning, this course will use case studies, discussion, event analysis, and some projects using real data. Students are also expected to come up with a group presentations to be presented in the class. COURSE REQUIREMENTS 1. Class attendance is mandatory. Students must come to class well-prepared. Readings and case assignments will be distributed before the scheduled session and must be studied thoroughly, as class participation will be a crucial part of the grading process. It will also help students in understanding the concepts given during the lectures. 2. The cases and group assignments will be informed prior to the scheduled session. For each case, each group has to prepare a powerpoint presentation materials which includes a summary and a short analysis of the case, and recommendations. 3. The grading policy includes: Assignment (Quiz & Class Participation, Case write ups & presentation) Midterm Examination Final Examination 20% 40% 40%

Session Topics 1. An Introduction to Financial Management Readings: KFM Ch.1 ; RCF Ch.1 Instructor: Imo Gandakusuma, MBA 2.

The Financial Markets and Interest Rates

KFM Ch.14 Web site: www.bi.go.id (see history of SBI rates) Instructor: Imo Gandakusuma, MBA Readings:

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Evaluating a Firm Financial Performance

Readings: KFM Ch.3 RCF Ch. 2 Instructor: Imo Gandakusuma, MBA KFM Ch.3 RCF Ch. 2 Case / Project: Analyzing financial health of publicly listed companies such as, AMFG, ARNA, IKAI, MLIA, TOTO, ALKA, INAI, JPRS, LION, PICO, DYNA, AKPI, TRST, CPIN, JPFA, SIPD, INKP, FASW, TKIM, GJTL, AUTO, INDS, SMSM, ARGO, ERTX, POLY, SCCO,ADES, AQUA, GGRM, TSPC,EPMT, TGKA, HERO, RIMO, MPPA. Web sites: www.jsx.co.id , www.indoexchange.com and www.e-bursa.com (see companies annual report) Instructor: Imo Gandakusuma, MBA

4.

Evaluating a Firm Financial Performance

Readings:

5.

The Time Value of Money

Readings: KFM Ch 5 ; RCF Ch. 4 Discussion: Your MM educational Investment Instructor: Imo Gandakusuma, MBA Each group has to prepare a powerpoint presentation materials Class Discussions Readings: companies annual report Instructor: Imo Gandakusuma, MBA

6.

Presentations of financial health of publicly listed companies

MID TERM EXAMINATION

7.

Valuation and Characteristics of Bonds

Readings: KFM Ch 7 ; RCF Ch. 5 Instructor: : Imo Gandakusuma, MBA

8.

Valuation and Characteristics of Stocks

Readings:

KFM Ch 8 ; RCF Ch. 5 Instructor: : Imo Gandakusuma, MBA

9.

Cost of Capital
KFM Ch.12 RCF Ch. 12 Discussion : Cost of Capital of Listed Companies in JSX Instructor: : Imo Gandakusuma, MBA Readings:

10 .

Capital Budgeting Decision Criteria

Readings: KFM Ch.9 ; RCF Ch. 6 Instructor: : Imo Gandakusuma, MBA KFM Ch 10 ; RCF Ch. 7 Instructor: : Imo Gandakusuma, MBA

11 .

Cash Flow and Other Topics in Capital Budgeting

Readings:

12 .

Dividend Policy
Readings: KFM Ch 14 Instructor: : Imo Gandakusuma, MBA

FINAL EXAMINATION