FINANCIAL MANAGEMENT FINC5202 Spring 2014 The AmericanUniversity in Cairo School of Business Department of Management

Dr. Eskandar A. Tooma Office: Office Hours: BEC P054 U 1:00-3:30 PM 5:00-6:00 PM 8:30-9:30 PM (+202) 2615-3472 etooma@aucegypt.edu Rehab Wahsh rhea@aucegypt.edu

Telephone: E-mail: Assistant:

Course Prerequisite ACCT 5201 Catalogue Description It is a basic business finance course, dealing with various aspects of financial decision making. It provides an introduction to time value of money; bond and stock valuation; ratio analysis; financing decisions; capital budgeting; cost of capital; capital structure; risk and return; dividend policy; operating and financial leverage; and working capital management. Vision of the School of Business The School of Business sees itself becoming globally recognized as the leading business school connecting the region and the world. Mission of the School of Business The School of Business strives to create an environment that fosters the development of principled and innovative business leaders and entrepreneurs who can make a difference.

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Mission of the Department of Management Our mission is to develop business leaders who are dedicated to the betterment of society by providing a high quality business education to top caliber students from all segments of Egyptian society as well as from other countries while focusing on continuous improvement and a commitment to excellence in learning, intellectual contributions and service.In support of this mission the department: Provides a high quality contemporary-style business education that blends a global perspective with national cultures and is relevant to the business needs of Egypt and the region. Provides programs that encourage the development of an entrepreneurial spirit that emphasizes creativity, innovation, individual initiative and teamwork. Provides a learning environment that fosters faculty/student communication and promotes lifelong learning and career development. Encourages faculty development activities that improve teaching, maintain competence and that keep faculty current with ideas and concepts in their field. Seeks to develop a portfolio of intellectual contributions to learning and pedagogy, to practice, and to the theory and knowledge base of the disciplines. The University Academic Honesty Policy Preamble: Valuing the concepts of academic integrity and independent effort, the American University in Cairo expects from its students the highest standards of scholarly conduct. The University community asserts that the reputation of the institution depends on the integrity of both faculty and students in their academic pursuits, and that it is their joint responsibility to promote an atmosphere conducive to such standards. Course Objectives To provide students with an overview of the basic concepts and techniques of financial management and their applications to business with particular emphasis on financial analysis, cost of capital, valuation techniques, risk management, and capital budgeting and financial structure. To introduce students to the techniques of problem solving so as to enhance their analytical skills. Moreover, fieldwork exposure will be attained by analyzing and presenting real life case studies. To expose students to the current financial events. Learning Goals Coverage In addition to the specific objectives of the course, the material and activities have been selected to aid students in their progress toward achieving the following departmental learning goals:

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1. 2. 3.

4.

Learning Goal Strategic Planning in a Global Environment: Each student will be aware of the strategic planning process and its impact on strategy development and performance. Communication: Each student will demonstrate the mastery of written and oral communication. Leadership: Each student will be able to identify different leadership styles and team building skills required for effective ethical decision making and accomplishing goals. Entrepreneurship: Each student will be aware of the entrepreneurial process and its relationship to society. 1= not at all covered 2= covered to a limited extent 3= covered to some extent 4= covered to a large extent

Level of Coverage 2

Teaching Method The course will consist of lectures emphasizing theory with numerical illustrations; while the assignments will focus on real world examples. The course assumes that the student has a certain basic knowledge of finance, economics and statistics. Some familiarity with a spreadsheet package, such as Excel, is essential for tackling assignments. The course has a substantial theoretical content, and it is in your best interest to attend each class and be regular with all assignments. Expectations and Guidelines Engagement: You are expected to be fully engaged in the entire learning process. This means devoting time and energy to preparation before class (according to the course schedule), listening to others and engaging in class discussions. Blackboard: Blackboard is an integral part of the course. All class communication will be conducted via Blackboard. All materials, assignments, solutions and announcements will be posted on Blackboard. You must check Blackboard regularly for updates. Knowledge and Skills: Basic Excel knowledge is required. In addition, you are expected to stay abreast of the latest financial news and events through journals and newspapers such as Al Mal, The Wall Street Journal, Financial Times, and The Economist, just to name a few. Page 3 of 4

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Academic Honesty: You are expected to abide by the universitys policy on academic honesty. Attempting to plagiarize material from the internet or other resources is considered a violation of the policy. If you should use financial data from the internet, make sure it is free for public use and include the necessary citations. Coursework and Grading Your performance will be evaluated based on the following: Coursework Assignments Midterm Final Exam Project Attendance & Participation Total % Quantity 4 1 1 1 Percentage 20 25 20 25 10 100

Group Work: o Each group will have 30 minutes to present its project. o Project reports are due on the day of your presentations. Individual Effort: o Late submissions will NOT be accepted. o Collaboration on assignments or exams is unacceptable. You can discuss assignments in groups, but solutions should be handed in individually with credit given to the person or persons you worked with. o Attendance and constructive participation in class discussions are MANDATORY. o Students are allowed planned/excused educational leave of absence, conditional to obtaining the instructors approval. Unexcused absences are limited to three (3); each extra absence will result in a one-letter grade demotion. o The exams are designed to test your understanding of concepts rather than your ability to memorize. They will be numerical and objective--no derivations. Text and Other Reading Materials o Financial Management, Theory and Practice by Eugene F. Brigham & Michael C. Ehrhardt, 12th ed., Thomson, South-Western. o Other reading materials will be assigned in class.

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