ST.

MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
General MBA Program

Course Title: Financial Management (MBA: 512) Credit Hours:3

Mohammed S. (Ass. professor)-----------seidmohammed64@yahoo.com
Simon T. (Ass. professor) ------------------ sharetosimon@gmail.com

Course Description:
This course is primarily designed to build on the fundamental concepts, principles, and
techniques of financial management. It is intended primary for post-graduate students in business
management. The theme of financial management is structured round the financial manager’s
decisions such as, investment decisions, financial decisions, dividend decisions and working
capital management.
Likewise, other functional areas of management, such as human resource management and
marketing management, financial management does not exist in isolation but it’s an inseparable
part of the general management. Therefore, this course covers topics on time value of money,
risk & return, cost of capital, leverage, capital structure, lease financing, dividend policy,
management of cash & marketable securities, receivables management, and inventory
management.
Course objective:
An understanding of financial management principles is an essential ingredient in the
development of a broad appreciation of business practices sought in a Master’s program. Thus,
this course provides a sound understanding of the financial principles, theories and techniques,
and aims to give a solid basis for decision making, incorporating the different aspects of the
company. The course in general concentrates in developing a high-level understanding of the
tactical and strategic significance of the financial management function within organizations.
Upon the successful completion of this course, students should be able to:
• Understand the relationship between risk and return;
• Evaluate firm’s performance using financial statements analysis
• Calculate the specific and overall cost of capital.
• Apply different techniques in evaluating the profitability of capital projects
• Describe the costs and benefits of raising long term funds;
• Discuss the fundamentals of dividend and dividend policy;
 • Understand the essentials of short-term financing;
Course Contents:
1. Overview of Financial Management
• Introduction to financial management
• The goals of the firm
• Problems of agency
• The risk-return trade off
• The Time Value of Money
2. Financial Statement Analysis
▪ Vertical and horizontal Analysis
▪ Ratio Analysis
3. Financing decisions, capital structure and cost of capital
• Sources of finance
• Capital structure
• Theories of capital structure
• Lease financing
4. Capital Budgeting and alternative investment rules
• Introduction to capital budgeting
• Estimation of cash flows
• Investment analysis
• Capital budget under uncertainty
5. Dividend policy
• Dividend policy
• Theories of investor preferences
• Signaling effects
• Residual model
• Dividend reinvestment plans
• Stock dividends, Stock splits and Stock repurchases
6. Working capital management
• Conceptual framework
• Operating environment of working capital
• Cash and marketable securities management
• Receivables Management
• Inventory management
7. International finance
• International Financial Environment
• Foreign Exchange Market and Risk Management
• International Financing Decisions
• International Investment Decisions and Working Capital Management
Assessments:

Assessment item 1: Financial Statement Analysis (in groups)

Weighting: 30%
Tasks: You will choose a Share company or PLC based on your
convenience, and collects the financial statement of the company for
FIVE consecutive years. The most recent two years annual reports
will be used for comparative analysis; you are expected to evaluate
the company’s position using the different tools (financial ratios) to
be discussed in the class, and identify the key strengths and weakness
of the company.
You are also expecting to conduct trend analysis using the five years
financial statements.

Submission date: June 5, 2021

Assessment item 2: Article review (in groups)

Weighting: 20%

Tasks: You will be given an article in the areas that will be discussing in
class; you will summarize the article based on a guideline you will be
provided. Attach a copy of the guideline in your submission.

Submission date: May 10, 2021

Assessment item 3: Final Exam

Weighting: 50%

References

Arnold Glen, (2002). Corporate Financial Management. Harlow: Prentice Hall.

Bhakka, V.K. (2002). Financial Management and Policy: Text and Cases New Delhi: Anmol
Publications

Block Stanley B. (1978). Foundation of Financial Management. Homewood: IRWIN

Brealey, Richard A. (2006). Corporate Finance. Boston: McGraw Hill.

Brigham & Ehrhardt (2008), Financial Management: Theory and Practice (Thompson)
Brigham & Houston (2003), Fundamentals of Financial Management, Consice 4E, (Cengage
Learning)

Grinblatt Nark, (2002). Financial Markets and Corporate Strategy. New Delhi: Ta McGraw Hill.
Khan, M. (2007) Financial Management: Text, Problem and Cases.
Pandey, I. M., (2000). Cases in Financial Management. New Delhi: Tata McGraw Hill.
Ross, Stephen A. (2008). Essentials of Corporate Finance. Boston: McGraw Hill.
Ross, Thompson, Christensen, Westerfield, Jordan; (2007) Fundamentals of Corporate
Finance, Fourth Australian Edition, McGraw-Hill/Irwin