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SYLLABUS & SAP

MM5007 – Financial Management

MASTER OF BUSINESS ADMINISTRATION PROGRAM


SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
2019

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1. Mission of SBM ITB
SBM ITB has mission as follows:

“To educate students to be innovative leaders with an entrepreneurial mindset and to


develop and disseminate knowledge of business and management for the betterment of
business, government, and society”

2. Course Description
<p style="text-align: justify; ">MM 5007 Financial Management is a mandatory course for students
enroll in MBA Program. Lectures on Financial Management provide knowledge and practical
experiences in managing corporations. Broadly speaking, Corporate Financial Management covers
the knowledge on matters of risk-and-return, as well as financial liquidity and profitability of the
corporation. Both subjects are keys for success in corporate management, namely so that the
company is capable of growing and developing adaptive behavior towards the company’s
environment. In studying Financial Management, one should also learn about the
financialcircumstances where the corporation is, including the financial instruments and institutions
that could assist the corporation or company in obtaining the necessary funds for operation or new
investments for the growing company. The corporate success is determined by its ability in making
strategic financial decisions, through bank loans, issuance of bonds or shares (common stock and
preferred stock), as well as its tactical financing decisions. Students are expected to know and apply
the ethical corporate finance decision making in real business situations. Therefore, the course will
meet the Learning Goals of Master of Business of Administration as follows: 1. LG 1: Integrative
Thinking 2. LG 4: Ethical Responsibility 3. LG 6: Global awareness</p><p><span style="font-size:
12px; font-family: Arial, sans-serif; text-align: justify;">This course focuses on the role of the financial
manager in creating value within a business organization. It provides exposure to the tools and issues
for financial decision making in a firm. Thus, the main focus of the course is on understanding: i) tools
for financial decisions, ii) valuation of stocks and bonds, iii) strategic corporate investment decisions
(which project to take), and iv) strategic financing decisions (optimal dividend payout policy and
capital structure).</span><br></p><p class="MsoNormal" style="margin: 0cm 0cm 0.0001pt; font-
size: medium; font-family: &quot;Times New Roman&quot;, serif; text-align: justify;"><span
lang="EN-US" style="font-size: 12px; font-family: Arial, sans-
serif;"><o:p>&nbsp;</o:p></span></p><p class="MsoNormal" style="margin: 4.5pt 0cm; font-size:
medium; font-family: &quot;Times New Roman&quot;, serif; text-align: justify;"><span lang="EN-
US" style="font-size: 11pt; font-family: Arial, sans-serif;"><span style="font-size: 12px;">This course
incorporates relevant topics for business leaders towards better decisions making and problems
solving, both on day-to-day matters and strategic investment decisions, increase ability to
communicate effectively within the company and explain how and why value is created by businesses
for sustainability.&nbsp;</span><o:p></o:p></span></p>

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3. Learning Goals and Objectives of Master of Business
Administration
Master of Business Administration has learning goals and objectives as on Table 1 below.
Fourth column shows the LG/LO of study program attached to courses.

Table 1. Learning Goals and Objectives of Master of Business Administration


No Learning Goal Learning Objectives Course LG/LO
Identify and analyze central problems of
1 Integrative Thinking X
a business case
Construct multiple perspectives that
integrate different factors or aspects,
X
other related business functions and
relevant contextual information
Create recommendation based on the
constructed perspectives and the X
company’s strategic objectives
Understand how to collaborate with
2 Team work
others
Apply the concept of managing conflict
to resolve problem in small group
learning environment
Demonstrate constructive feedback in
small group learning environment
Present information in an organized and
3 Communication Skills
concise manner
Demonstrate skill to persuade others in
persuasive manners
Demonstrate listening skills
Recognize ethical issues in business
4 Ethical Responsibility
context
Assess the impact of ethical issue
toward various stakeholders
Systematically analyze the pro and cons
of any decisions related to ethical issues
Demonstrate the propensity to take
5 Leadership
initiative

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Bring influence toward other people in
her/his team
Inspire and empower others by
evaluating, analyzing, and providing
critics on how leadership behaviors and
characteristics affect employees and
businesses outcomes
Demonstrate an ability to manage
change
Identify global issues that may affect the
6 Global awareness X
industry (Global Intellectual Capital)
Develop understanding toward global
cultural aspects that affect business X
operations
Develop business recommendations
based on understanding about the X
global aspects

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4. Reading Material
Principles of Managerial Finance, 14th ed.

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5. The Course Schedule/ Plan
Table 3 present the class activities that are required to achieve the learning objectives of this course.

Table 3. Weekly Class Activities of Financial Management

Week/ Date/ Activities Lecturer


Module
Topic: Subiakto Soekarno
Introduction and Financial Statements
Sub-topic:
Introduction Financial Market Environment
Activity:
Tuesday 20 August Lecture
2019 Description:

Reference:
-

Topic: Subiakto Soekarno


Introduction to Financial Management
Sub-topic:
Tuesday 20 August
Financial Market Environment
2019
Activity:
Watching Video on Agency Problem
Description:

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Learning agency problems in corporate finance
Reference:
-

Topic: Subiakto Soekarno


Financial Statement Analysis
Sub-topic:
Financial Statements Financial Ratios Analysis Dupont Analysis
Activity:
Thursday 22 Lecture and Class Discussion
August 2019 Description:
LGJ Chapter 3
Reference:
-

Topic: Subiakto Soekarno


Financial Statement Analysis
Sub-topic:
Financial Detective Case
Thursday 22 Activity:
August 2019 Case Discussion (Group Presentation)
Description:

Reference:
-

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Topic: Subiakto Soekarno
Financial Statement Analysis
Sub-topic:
Krakatau Steel Case A and B
Activity:
Tuesday 27 August Case Discussion
2019 Description:

Reference:
-

Topic: Subiakto Soekarno


Cash Flow and Financial Planning
Sub-topic:
Cash Budget Proforma Financial Statements
Activity:
Tuesday 27 August Lecture and Class Discussion
2019 Description:
LGJ Chapter 4
Reference:
-

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Topic: Subiakto Soekarno
Time Value of Money
Sub-topic:
Present Value & Future Value Annuity Application
Activity:
Thursday 29 Lecture and Class Discussion
August 2019 Description:
LGJ Ch.5
Reference:
-

Topic: Subiakto Soekarno


Time Value of Money
Sub-topic:
Developing Financial Insight Case
Activity:
Thursday 29 Case Discussion
August 2019 Description:

Reference:
-

Topic: Subiakto Soekarno


Tuesday 03
Interest Rates & Bond Valuation
September 2019
Sub-topic:

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Interest Rates Bond Characteristics & Valuation
Activity:
Lecture and Class Exercises
Description:
LGJ Ch.6
Reference:
-

Topic: Subiakto Soekarno


Stock Valuation
Sub-topic:
Stock Valuation
Activity:
Tuesday 03 Lecture and Class Exercises
September 2019 Description:
LGJ Ch 7
Reference:
-

Topic: Subiakto Soekarno


Cost of Capital
Thursday 05 Sub-topic:
September 2019 Risk and Return Cost of Capital
Activity:
Lecture and Class Discussion

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Description:
LGJ Ch.8 and Ch.9
Reference:
-

Topic: Subiakto Soekarno


Cost of Capital
Sub-topic:
Nike Cost of Capital
Activity:
Thursday 05 Case Discussion
September 2019 Description:

Reference:
-

Topic: Subiakto Soekarno


Exam
Sub-topic:
Exam
Tuesday 10
Activity:
September 2019

Description:

Reference:

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-

Topic: Uke Marius Siahaan


Capital Budgeting
Sub-topic:
Capital Budgeting Techniques
Activity:
Thursday 12 Lecture and Class Exercises
September 2019 Description:
LGJ Ch10
Reference:
-

Topic: Uke Marius Siahaan


Capital Budgeting
Sub-topic:
Capital Budgeting Cash Flow
Activity:
Thursday 12 Lecture and Class Exercises
September 2019 Description:
LGJ Ch.11
Reference:
-

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Topic: Uke Marius Siahaan
Capital Budgeting
Sub-topic:
Investment Detective Case Fonderia di Turino Case
Activity:
Tuesday 17 Case Discussion
September 2019 Description:

Reference:
-

Topic: Uke Marius Siahaan


Capital Budgeting
Sub-topic:
Case discussion
Activity:
Tuesday 17 Lecture and Class Discussion
September 2019 Description:
LGJ Ch.12
Reference:
-

Topic: Uke Marius Siahaan


Thursday 19
Risk and Refinements in Capital Budgeting
September 2019
Sub-topic:

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Risk and Refinements in Capital Budgeting
Activity:
Lecture and Class Exercises
Description:
LGJ Ch.13
Reference:
-

Topic: Uke Marius Siahaan


Leverage and Capital Structure
Sub-topic:
Lecture and Class Discussion
Activity:
Thursday 19 Case Discussion
September 2019 Description:

Reference:
-

Topic: Uke Marius Siahaan


Leverage and Capital Structure
Tuesday 24 Sub-topic:
September 2019 Case Discussion: An Introduction to Debt Policy and Value
Activity:
Discussion

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Description:
LGJ Ch.14
Reference:
-

Topic: Uke Marius Siahaan


Dividend and Pay Out Policy
Sub-topic:
Dividend and Pay Out Policy
Activity:
Tuesday 24 Class Exercise
September 2019 Description:

Reference:
-

Topic: Uke Marius Siahaan


Short Term Financial Decision
Sub-topic:
Working Capital Management
Thursday 26
Activity:
September 2019
Lecture and Class Exercise
Description:
LGJ Ch.15
Reference:

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-

Topic: Uke Marius Siahaan


Short Term Financial Decision
Sub-topic:
Case discussion: Dells Working Capital
Activity:
Thursday 26 Case Discussion
September 2019 Description:
LGJ Ch.16
Reference:
-

Topic: Uke Marius Siahaan


Special Topics in Finance
Sub-topic:
Merger
Activity:
Tuesday 01 October Lecturing, Exercises
2019 Description:

Reference:
-

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Topic: Uke Marius Siahaan
Special Topics in Finance
Sub-topic:
Leasing
Activity:
Tuesday 01 October Lecturing, Exercises
2019 Description:

Reference:
-

Topic: Uke Marius Siahaan


Exam
Sub-topic:
Exam
Activity:
Thursday 03
October 2019 Description:

Reference:
-

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6. Assessment Summary
Table 4. Assessment summary and weight of Financial Management
ASSESSMENT TASK DUE DATE

7. Grading Policy

Aspect %
Individual Assignment 20
Group Assignment 20
Mid Semester Test 30
Final Examination 30
TOTAL 100

8. Course Policy
1. Laptop and personal communication are not allowed during the class 2. Lecturer will not accept
delays in the assignment submission 3. No make-up quiz and exam 4. Bring calculator

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9. Lecture(S)/ Facilitator(S) Profile

Lecture Profile
1 Name : Subiakto Soekarno

E-mail : subiakto@sbm-itb.ac.id

Office :

Short Profile

2 Name : Uke Marius Siahaan

E-mail : ukesiahaan@gmail.com

Office :

Short Profile

Alumni Teknik Industri ITB yang Lulus pada thn 1978, meneruskan sutdinya dan
mendapatkan Gelar MBA yang pertama dalam Bidang Strategi Marketing di Sekolah Bisnis
LPPM, dan dilanjutkan pada tahun 1977 di Post Graduate School, Bidang Konsentrasi
Keuangan dan Perbankan di Harvard Business School, Boston, Massachusets , USA dan
selesai pada bulan Oktober 1987. Doktor dengan predikat Cum Laude, dalam bidang
Management Keuangan diperolehnya dari Universitas Brawijaya pada tahun 2013. Karier
kerjanya dimulai dengan bekerja pada Group Raja Garuda Mas, dengan proyek
membangun Pabrik Plywood di Besitang Sumatera Utara, dan mengepalai Divisi Logging.
Selanjutnya berkiprah pada dunia perbankan, pasar modal dan Merchant Banking dengan
bekerja pada JP Morgan di kota New York USA, dan sekembalinya ke Tanah Air dilanjutkan
dengan mendirikan 3 (tiga) buah Multi Finance. Sebagai Entrepreuner, dirintisnya sejak
tahun 1992 dengan membentuk Group Business Sendiri dengan nama DEKA Group dalam
Bidang : Keuangan, Pertambangan Batu Bara dan Tambang Silica, Perhotelan, Property,
Manufaktur, Minyak & Gas, dll. Menekuni Bidang Akademik Sejak thn 1989 sampai dengan
saat ini, dengan secara aktif Mengajar di Lemhanas dan beberapa Program Pasca Sarjana,
antara lain pada SBM MBA-ITB, Universitas Brawijaya, LPPM, Indonesian Banking SchoolI,
Universitas Trilogi dll.

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