SCHOOL OF ECONOMICS, FINANCE AND BANKING (SEFB)

UUM COLLEGE OF BUSINESS

UNIVERSITI UTARA MALAYSIA

No. Information on Course

1. Course Name : ADVANCED FINANCIAL MANAGEMENT

2. Course Code: BWFF2043

Name(s) of Academic Staff:
3.
 Dr. Badru Bazeet Olayemi (Coordinator)
 Prof. Dr. Mohd Amy Azhar Mohd Harif (Group M & J)
 Assoc. Prof. Dr. Kamarun Nisham Taufil Mohd
 Assoc. Prof. Dr. Rohani Md Rus
 Dr. Hasniza bt. Mohd. Taib
 Dr. Rusmawati Ismail
 Dr Hisham Bin Mohammed
 Dr Abd. Halim @ Hamilton Bin Ahmad
 Dr. Abdulazeez Yousef Hazza
4. Rationale for the inclusion of the course in the programme:
This is one of the core courses offered for B. Fin students.

5. Semester/Year Offered: 3/2

6. Total Student Learning Face to face Online SLPA TLT

Time (SLT) Learning

TL = Traditional TL T P SCL/O A OL OA
Lecture T = Tutorial
P = Practical
SCL/O = Student Centered
Learning/Others
A = Assessment 13 9 0 7 4.5 13 9.4 64.1 120
OL= Online Learning
OA = Online Assessment
SLPA= Self Learning
Preparation and Assessment
TLT = Total Learning Time
7. Credit Value: 3
 8. Pre-requisite (if any):
BWFF2033 FINANCIAL MANAGEMENT

9. Objective(s) of Course :
After completing this course, students should be able to:
i. understand the key concepts and theories of financial management as a
whole.
ii. acquire knowledge and skills necessary to solve different types of problems
in finance.
iii. develop long-term investment or financing analysis on business and non-
business organization.

10. Course Learning Outcomes:

Upon completion of the course, students are able to
i. comprehend the concepts and theories related to financial
management. (C2)
ii. apply financial concepts, tools and techniques to solve appropriate
hypothetical and real world problems. (C3)
iii. evaluate financial decisions in pursuit of maximizing shareholders’ wealth.
(C5)

11. Transferable Skills:

Knowledge, problem solving & writing skills .

12. Teaching-learning and assessment strategy:

Mixed method between teacher-centred and student-centred through traditional lecture and
online teaching. While assessment will generally be based on examination and project.

13. Synopsis:
This is the follow-up course of Financial Management, where the aim is to enhance
students’ understanding of the long-term investment and the long-term financing
decision-making process. It reviews the concept of time value of money as a preparation so
that they can apply the concept in the topics that follow, such as securities valuation,
capital budgeting and cost of capital. In addition, leverage, capital structure and dividend
policy will also be discussed.
14. Mode of Delivery: Lectures and discussions

Assessment Methods and Types:

15.
Coursework – 50%
- Individual practice 1 – 5% (online)
- Individual practice 2 – 5% (online)
- Individual Assignment - 5%
- Group Assignment – 15%
- Mid Semester Examination - 20%
Examination – 50% (Final Examination)
16. Mapping of the course/module to the Programme Aims

Course Learning Outcomes

Programme Aims

1 2 3

The aims of the Bachelor of Finance

(Honours) programme are to produce
competent and knowledgeable graduates in √ √ √
the area of finance to serve the global
community.

17. Mapping of the course/module to the Programme Learning Outcomes

Programme Learning Outcomes Course Learning Outcomes

1 2 3

Identify and explain the concepts and √

theories relevant to the field of finance.

Apply financial concepts, tools and

techniques in decision making.

Work as a team member in a multi-cultural

environment.

Observe professional ethical code of

conduct and good values.

Articulate ideas orally and in writing and √

demonstrate leadership skills.
Offer opinions and suggestions regarding
√
financial issues.

Comprehend emerging issues and manage

relevant information in finance.

Exhibit managerial and entrepreneurial skills.

 18. Content outline of the course/module and the SLT per topic

Topics/Weeks Face to Face SLPA TLT

OL
Learning SCL/O
TL T P
Outcomes
1.0 TIME VALUE OF MONEY REVIEW
1 1 1 1 3 6
1.1. An Overview of the course
1.2. The Relationship between Financial
Management course and Advanced
Financial Management course.
1.3. The Objectives of learning Advanced
Financial Management.
1.4. Present Value and Future Value
1.4.1.Single Amount
1.4.2.Annuities
1.4.3.Perpetuities
1.4.4.Uneven Cash Flows
1, 2,3 2 1 1 2 6 12
2.1 BASIC OF VALUATION AND BOND
VALUATION
2.2 Valuation Concepts
2.3 Intrinsic Value
2.4 Characteristics of Bonds
2.5 Types of Bonds
2.6 Bond Valuation
2.7 Yield to Maturity
2.8 Important Factors in Bond
Relationships

1,2,3 2 1 1 2 6 12
3.1 STOCK VALUATION
3.2 Fund Raising in the Capital Market
3.3 Features of Preferred Stock
3.4 Preferred Stock Valuation
3.5 Preferred Stockholder’s Expected
Rate of Return
3.6 Characteristics of Common Stock
3.7 Common Stock Valuation
3.7.1 Single Holding Period
3.7.2 Constant Growth Dividend
Model
3.7.3 Supernormal Growth
3.8 Common Stockholder’s Expected Rate of
Return

1,2,3 2 1 1 2 6 12
4.1 COST OF CAPITAL
4.2 Definition and of costs of capital
concepts
4.3 Determining individual cost of capital
 4.3.1 Bond
4.3.2 Preferred Stocks
4.3.3 Common Stocks
4.3 Weighted average cost of capital
(WACC)
4.4 Weighted marginal cost of capital
(WMCC)
4.5 Making investment decisions.

1,2 2 1 1 2 6 12
5.1 TECHNIQUES IN CAPITAL BUDGETING
5.2 Introduction to capital budgeting
5.3 Payback period
5.4 Discounted payback period
5.5 Net present value (NPV)
5.6 Profitability index (PI)
5.7 Internal rate of return (IRR)
5.8 Complications in capital Budgeting:
Capital rationing and mutually
exclusive projects
5.8.1 Time disparity
5.8.2 Size disparity
5.8.3 Unequal lives

1,2,3 2 2 1 1 6 12
6.1 CASH FLOWS IN CAPITAL BUDGETING
6.2 Relevant cash flow
6.3 Initial outlay
6.4 Annual cash flow
6.5 Terminal cash flow
6.6 Replacement and expansion of
project
6.7 Decision making in capital budgeting

1,2,3 1 2 1 2 6 12
7.1 LEVERAGE AND CAPITAL STRUCTURE
7.2 Business and financial risk
7.3 Break-even analysis
7.4 Operating leverage
7.5 Financial leverage
7.6 Combined leverage
7.7 Optimal capital structure
7.8 EBIT- EPS analysis
1 1 1 1 3 6
8.1 DIVIDEND POLICY
8.2 Dividend payment versus profit
retention
8.3 Does dividend policy affect stock prices
8.4 The dividend decision in practice.
8.5 Stock dividend and stock splits.
8.6 Stock repurchases
13 9 0 7 13 42 84
Student Learning & Assessment Online Online
Face to Face SLPA TLT
Learning Assessment

Course Delivery and

29 13 42 84
Preparation

Coursework
1.3 3.4 14.4 19.1
50%

Final Examination
3.2 0 13.8 17.0
50%

Total Notional Hours 33.5 13 3.4 70.2 120

Credit Hours 3
Main reference :
Ross, S., Westerfield, R., Jordan, (2019). Fundamentals of Corporate Finance (Twelfth Edition). New York:
McGraw-Hill Education.

Other references:
Titman, S., Keown, A. J., Martin, J. D., Petty (2018). Financial Management: Principles and Applications (13th
Edition). Global Edition
Gitman, L.J., and Zutter, C.J. (2012). Principles of Managerial Finance (13th ed.). Boston: Prentice Hall, Inc.
Keown, A. J., Martin, J. D., Petty, J. W., and Scott, D. F., Jr. (2005). Financial management: Principles and
applications (10th ed.). New Jersey: Prentice Hall, Inc.
Ross, S., Westerfield, R., Jordan, B., Lim, J, Tan. (2016). Fundamentals of Corporate Finance (Asian Global
Edition). Singapore: McGraw-Hill.