SOLOMON ISLANDS NATIONAL UNIVERSITY

Faculty of Business and Tourism Studies

School of Business and Management
Department of Economics, Banking & Finance
Semester: 2, 2020
Course: BA713 Financial Management
Credit Points: 15
Prerequisite: A pass in BA611

Lecturer: Larry Holmes Tara

Other Lecturers: TBC

Lectures: Fridays 10am – 12pm (Rm: Ex-Library);

Tutorials: Mondays 10am – 12pm (Rm: B1)

Mondays 4pm – 6pm (Rm: B1)
Workshops: Nil
Clinical: Nil
Self-Directed Learning: 5 Hours per week recommended
Consultation Time: Walk-in: Mondays 1pm -3 pm
At other times, through appointment with the Dept secretary
E-Information: All pertinent information relating to the course shall be posted on the SINU Student Learning
Module. Students are required to check the course page at the SINU Student Learning Module regularly for
communication from the lecturer.

TOTAL LEARNING HOURS Learning Hours

(Includes Recommended Self Directed
Learning)

Contact Hours 82
Lectures 28
Tutorials 26
Consultations 28
Self Directed Learning (during term) 107
Self Directed Learning (Mid-Term Break) 11
Total Learning Hours 200

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1.0 Welcome
I welcome you to this Course and hope that you will find it enriching and interesting. This course will introduce
you to managerial finance, financial tools and how these tools are utilized to value and assess financial
securities, and help out in short- term investment and financing decision making. It is taken as a core Unit
towards the Bachelor of Business Entrepreneurship degree program offered at the School of Business and
Management.

1.1 Course Description

Financial Management is concerned with making decisions about alternative sources and uses of funds. It
involves the questions by how business measure profitability of committing funds in one direction as opposed to
another. The course focuses on how companies evaluate and make decisions regarding accessing funds from
different sources to different projects.
Financial Management covers an overview of financial management, financial markets, institutions, and interest
rates, financial statement analysis, time value of money and DCF techniques, risk and rates of return, bond and
share valuation, and financing decisions.

1.2 Learning Targets/Outcomes

On successful completion of this course, students will be able to understand the following:
 Identify the objective of a firm and explain the role of managerial finance
 Evaluate financial statements using ratio analysis
 Demonstrate the importance of cash-flows to financial planning
 Apply a variety of time value of money formulae and techniques
 Discuss the risk-return tradeoff
 Distinguish between market risk and unique risk
 Demonstrate how risk is measured through the CAPM
 Discuss the concept of opportunity cost of capital
 Explain the concept of weighted average cost of capital
 Explain the general concept of valuing of financial assets
 Explain the characteristics of debt and equity securities
 Calculate the value of debt and equity securities
 Identify the expected return on debt and equity securities
 Compare mutually exclusive projects that have different lives
 Determine when to retire or replace assets
 Identify capital budgeting cash flows
 Apply a variety of capital budgeting techniques
 Appraise risks and refinements in capital budgeting
 Outline the alternative sources of long-term funds
 Contrast operating leverage and financial leverage

To meet these outcomes, students are strongly recommended to follow the learning hour’s guidelines given
above. Self-directed learning comprises all the recommended readings, writing workshop reports, doing your

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tutorial exercises, doing your assignments, and your revision. The hours indicated for these are indicative only.
You need to pace your own self-directed learning.

2.0 Resources
2.1          Course Book & Reading Guide
BA713 – Financial Management Course Guide, School of Business and Management, Solomon Islands National
University Reading Book.

2.2 Reference Textbooks

1. Peirson, G. et.al, Business Finance, 9th edition, McGraw Hill
2. Gitman, L.J. & Zutter, C.J. (2012), Principles of Managerial Finance, (13th Edition). Pearson: Uk

2.3 Supplementary Materials

Supplementary notes will either be given during the lectures or placed on Moodle

3.0 Course Content and Reading References

WEEK Content  Hours

1 I. Introduction to Financial Management
Lectures 2
Face-to-face Consultations 2
Readings:
1. Lecture 1 1
2. Course Book, Topic 1 1
3. Peirson, G. et.al, Chapter 1 2
Other activities: Tutorial preparation 1
Assessment due: Nil 1111
Recommended Self Learning Hours (Including Reading Time) 5

2 II. Financial Mathematics and Concepts

Lectures 2
Tutorials (Activity & Interactive Discussion) 2
Face-to-face Consultations 2
Readings:
1. Lecture 2 1
2. Course Book, Topic 2 1
3.Peirson, G. et.al, Chapter 3 2
Other activities: Tutorial preparation 2
Assessment due: Nil
Recommended Self Learning Hours (Including Reading Time) 6

3 III. Financial Statement Analysis & Ratio Analysis

Lectures 2
Tutorials (Activity & Interactive Discussion) 2
Face-to-face Consultations 2
Readings:
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 1.Lecture 3 1
2. Course Book, Topic 3 1
3. Supplementary Readings 1
Other activities: Tutorial Preparation and work on Assignment 1 2
Assessment Due: Nil
Recommended Self Learning Hours (Including Reading Time) 5

4 IV. Financial Planning

Lectures 2
Tutorials (Activity & Interactive Discussion) 2
Face-to-face Consultations 2
Readings:
1. Lecture 4 1
2.Course Book, Topic 4 1
3.Supplementary Readings 1
Other activities: Tutorial prep and Work on Assignment 1 2
Assessment due: Nil
Recommended Self Learning Hours (Including Reading Time) 5

5 V. Financial Planning cont….

Lectures 2
Tutorials (Activity & Interactive Discussion) 2
Face-to-face Consultations 2
Readings:
1. Lecture 5 1
2. Course Book, Topic 4 1
3.Supplementary Readings 1
Other activities: Tutorial preparation & work on Assignment 1 2
Assessment due: Tutorial activity
Recommended Self Learning Hours (Including Reading Time) 6

6 VI. Financial Planning cont….

Lectures 2
Tutorials (Activity & Interactive Discussion) 2
Face-to-face Consultations 2
Readings:
1. Lecture 6 1
2. Course Book, Topic 5 1
3.Peirson, G. et.al, Chapter 7 2
Other Activities: Tutorial Preparation & MST prep 2
Assessment Due: Assignment 1 submission
Recommended Self Learning Hours (Including Reading Time) 6

7 VII. Risk and Rate of Return

Lectures 2
Tutorials (Activity & Interactive Discussion) 2
Face-to-face Consultations 2
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 Readings:
1. Lecture 7 1
2.Course Book, Topic 5 1
3.Peirson, G. et.al, Chapter 7 1
Other Activities: Tutorial Preparation & Assignment 1 5
Assessment Due: Nil
Recommended Self Learning Hours (Including Reading Time) 8

8 VIII. Valuation of Financial Securities

Lectures 2
Tutorials (Activity & Interactive Discussion) 2
Face-to-face Consultations 2
Readings:
1. Lecture 6 1
2. Course Book, Topic 6 1
3.Peirson, G. et.al, Chapter 4 2
Other activities: Tutorial Preparation & Test 1 Preps 5
Assessment due: Assignment 1 Due
Recommended Self Learning Hours (Including Reading Time) 9

9 VIIII. Methods of Evaluation

Lectures 2
Tutorial (Activity) 2
Face-to-face Consultations 2
Readings:
1. Lecture 7 1
2. Course Book, Topic 7 1
3. Peirson, G. et.al, Chapter 5 2
Other activities: Tutorial Preparation & Test 1 Preps 5
Assessment due:
Recommended Self Learning Hours (Including Reading Time) 9

10 X. Methods of Evaluation cont….

Lectures 2
Tutorials (Activity & Interactive Discussion) 2
Face-to-face Consultations 2
Readings:
1. Lecture 6 1
2. Course Book, Topic 7 1
3. Peirson, G. et.al, Chapter 5 2
Other Activities: Tutorial preparation and Test 1 Prep 10
Assessment Due: Test 1
Recommended Self Learning Hours (Including Reading Time) 14

11 XI. Application of Methods of Evaluation

Lectures 2
Tutorials (Activity & Interactive Discussion) 2
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 Face-to-face Consultations 2
Readings:
1. Lecture 11 1
2. Course Book, Topic 8 1
3. Peirson, G. et.al, Chapter 6 2
Other activities: Tutorial prep & Work on Assignment 2 2
Assessment due: NIL
Recommended Self Learning Hours (Including Reading Time) 6

12 XII Application of Methods of Evaluation

Lectures 1
Tutorial (Activity & Interactive Discussion) 1
Face-to-face Consultations 1
Readings:
1. Lecture 12 1
2. Course Book, Topic 8 1
3. Peirson, G. et.al, Chapter 6 2
Other activities: Tutorial Preparation & Work on Assignment 2 2
Assessment due: Tutorial activity
Recommended Self Learning Hours (Including Reading Time) 6

13 XIII. Sources of Short-Term & Long-term Finance

Lectures 2
Tutorials (Activity & Interactive Discussion) 2
Face-to-face Consultations 2
Readings:
1. "Lecture 13 1
2. Course Book, Topic 10 1
3. Peirson, G. et.al, Chapter 10 & 11 4
Other activities: Tutorial preparation & Test 2 Prep 5

Assessment due: Assignment 2 submission

Recommended Self Learning Hours (Including Reading Time) 11

14 XIV Summary
Lectures 2
Tutorial (Activity & Interactive Discussion) 2
Face-to-face Consultations 2
Readings:
1. Lecture 14 1
Other activities: Tutorials & Test 2 Prep 10
Assessment due: Test 2
Recommended Self Learning Hours (Including Reading Tim 11

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4.0   Assessments
Assessment for this Unit has been amended due to COVID-19 Pandemic and will be 100% Coursework (Internal)
(see below).

COMPONENTS DUE DATE WEIGHT SUBMISSION

Assessment 1 Week 8 25% In Class
Major Assignment 1
Assessment 2 Week 10 Friday 27th 20% In Class
Test 1 November 10am – 12pm
Closed Book 1hr 30 minutes
Assessment 3 Week 13 15% In Class
Major Assignment 2

Assessment 4 Week 14 25% In Class

Test 2
Closed Book
Assessment 4 Weekly 10% In Class
Homework and Attendance Must attend 80%
TOTAL INTERNAL 100% 100%
ASSESSMENT
EXAMINATION 0% 0%

5.0 Grading System

Refer to SINU Student Handbook

6.0 Dissatisfaction with Assessment

Refer to SINU Academic Policy (Section 50)

7.0 Plagiarism and Dishonest Practice

Refer to SINU Academic Policy (Section 56)