INDEPENDENT UNIVERSITY, BANGLADESH

School of Business
BBA Program Course Outline
Semester

Course Code

Course Title

Section

Autumn15

FIN 201

Introduction to Finance

05

Instructor : Mohammad Fahad Noor

Office :
4005
Phone :
Email :
fahad@iub.edu.bd

Class Time:
Class Room:
Office Hours:

ST 09:40 11:10
BC 3009
ST 08:30 09:30; 11:10- 13:40
MW 08:30 09:30; 11:10 13:40

Thursday 10:30-15:30
Blackboard:

COURSE DESCRIPTION:
This course attempts to give the students an introductory overview of the finance function in business.
Various core concepts of financial management are discussed and elaborated on. Specifically, the principles
financial management are examined with emphasis on a) analyzing financial statements, forecasting,
planning b) valuation of financial assets c) investment in long-term assets and d) capital structure
PREREQUISITE: Successful completion of BUS 202 and MAT 211 are required
COURSE OBJECTIVES:
At the end of the course, the student should have a fair idea about the importance of the finance function in
an organization. A clear and firm understanding of the time value of money is expected. Upon conclusion of
the course, the student must have developed a fair ability to analyze financial statements, understand capital
budgeting techniques, determine cost of capital and determine optimum capital structure.
TEXT BOOK:
Block & Hirt,Foundations of Financial Management Thirteenth Edition, McGraw Hill.

RECOMMENDED REFERENCE TEXT:

Keown, Martin. Financial Management: Principles and Applications Eleventh Edition (2011),Prentice-Hall
International.
Van Horne & Wachowicz, Fundamentals of Financial Management Thirteenth Edition (2008), Prentice-Hall
International

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
class room 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) will be considered as cheating. Any sorts of cheating will result in an 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.

ACADEMIC INTEGRITY POLICY:

Students are advised to refrain from any type of cheating and/or plagiarism. Any student acting otherwise
will receive an F in the course. School of Business, IUB, maintains a zero tolerance policy regarding
violation of academic integrity.
COURSE PLAN:
Sl.
1
2
3
4

5
6
7
8

Topics
Introduction : Goals and Functions of Financial Management
Field of finance, Evolution, Functions, Corporate Governance, Goals,
Role of Financial Markets
Financial Analysis & Planning (Review of Financial Statements)
Income statement, Balance Sheet, Statement of Cash Flows,
Depreciation, Free Cash Flow, Income Tax
Financial Analysis
Ratio analysis, Trend Analysis, Impact of Inflation, Other elements of
distortion in reported income
Time Value of Money
Future Value, Present Value, Annuities ,Determining yield,
Relationships, Special considerations
Mid-term Exam
Valuation and Rates of Return
Valuation concept , Bonds, Preferred stock, Common stock
Cost of Capital
Cost of debt, Cost of preferred, Cost of common equity ,Weighted and
marginal cost of capital
Capital Budgeting
Accounting versus cash flows, Proposals (Payback, NPV, IRR, MIRR),
Capital rationing, NPV profile
Risk and Capital Budgeting
Definitions of risk, Risk-averse, Actual measurement, Risk and the
capital budgeting process, Simulation models

Text/ Reference Link

Block & Hirt., Chapter 1

1,2
Block & Hirt., Chapter 2

3,4,5

Block & Hirt., Chapter 3

6,7

Block & Hirt., Chapter 9

8,9,10,11
12

Block & Hirt., Chapter 10

13,14

Block & Hirt., Chapter 11

15,16

Block & Hirt., Chapter 12

17,18

Block & Hirt., Chapter 13

19,20

Final Exam

COURSE EVALUATION:
Type of Evaluation
Class Attendance and Participation
Quiz
Assignments/ Homework/ Projects
Excel Workshop
Midterm Exam
Final Exam
Total

Nos.
~
5
5
2
1
1

Weight
5%
15%
10%
5%
30%
35%
100%

GRADING POLICY:
The following scheme should be followed in assigning final grade for the course.
Grade
A
AB+
B
BC+

Percentage
90 and above
85 to less than 90
80 to less than 85
75 to less than 80
70 to less than 75
65 to less than 70

Grade
C
CD+
D
F

Lecture No.

Percentage
60 to less than 65
55 to less than 60
50 to less than 55
45 to less than 50
Less than 45

SCHEDULE FOR EXCEL WORKSHOP:

As part of this course you will need to attend two sessions on how to use Microsoft EXCEL for financial
management. Please note the dates below (tentative) for your scheduled sessions. More details about the
exact timing will be provided by your instructor in class.
INCOMPLETE (I) GRADE:
Awarding of Incomplete or I grades is strongly discouraged. I will only be allowed for students who have
a valid reason (ascertained by the senior management). In situations where the student is unable to complete
the course due to unanticipated illness or family emergency and has not attended at least 75% of the classes
held, he / she will be asked to withdraw from that course and repeat it. In unavoidable circumstances where
students have completed 75% of the classes but are unable to continue (due to illness or family emergency),
Incomplete grade of I may be granted. Incomplete course has to be completed by the end of the next
semester, otherwise grade I automatically becomes grade F. The student is not required to register for the
course in the next semester.
WITHDRAWAL (W):
A W grade means withdrawal. A student may decide to withdraw from a course by the deadline. Students
must apply to the Program Office for withdrawal from a course with the permission of the concerned course
instructor, Academic Advisor, and the Dean. Withdrawal from only one course in a semester is allowed but
the students should provide valid reason along with documents while applying for the withdrawal.
AUTOMATIC WITHDRAWAL:
A student can misses a maximum of 8 classes for a particular course. After that the course will be
automatically withdrawn. A student automatically withdrawn from a course will NOT be allowed to UNDO
it under any circumstances.
CHANGES OF GRADE:
Change of grade is strongly discouraged. However, the instructor may request a change of grade when a
computational or procedural error occurred in the original assignment of a grade.
PEDAGOGY
A total of five quizzes will be held. These quizzes will be announced a week in advance and will help you
keep track of your progress as we move from one part of the course to another. Out of the five quizzes held,
the best three will be counted. Remember, there will be no makeup quizzes. Throughout the semester, short
assignments are to be submitted by you for grading. Please note that this is a task to be completed
individually. Consider this a practice task to make sure you understood what was taught in class. There will
be one midterm exam. Syllabus for the midterm and final exams will be announced in class.
BLACKBOARD:
In addition to class teaching, lecture PowerPoint, announcements and other information should be 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 >