ISRA UNIVERSITY

Department of Commerce, Economics, & Management Science

Course Outline
Course Code

Course Name
FINANCIAL MANAGEMENT

Chapters
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3.

Credit Hours
3(3+0)
Lectures

AN OVERVIEW OF FINANCIAL
MANAGEMENT

Definition
The corporate Life Cycle
The sole proprietorship
The partnership
The corporation
Financial markets
Financial Institutions
The stock market
The cost of money
TIME OF VALUE MONEY
Time Lines
Future Value
Present Value
Perpetuities
Annuities
Growing annuities
Amortized loans
FINANCIAL STATEMENTS AND
CASH FLOW, AND TAXES
Financial Statement and reports
The balance sheet
The income statement
Statement of retained earnings
Net cash flow
Statement of cash flows
Modifying Accounting data
4. RISK AND RETURN: THE BASICS
Investment returns
Calculating Beta Coefficients
The relationship between Risk and

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Rates of return
Project versus securities
Volatility versus risk

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BONDS AND THEIR VALUATION

Who issues bonds
Key Characteristics of Bonds
Bonds
Semiannual coupons
Bond Valuation
Bond yields
STOCKS AND THEIR VALUATION
Legal rights of Common stock holders
Types of Common stock
The market for common stock
Common stock valuation
Preferred stock valuation
Stock market equilibrium
Constant growth stocks
THE COST OF CAPITAL
The weighted average cost of capital
Cost of debt
Cost of preferred stock
Cost of common stock
The CAPM approach
LEASE FINANCING
The parties to leasing
Types of leases
Tax effects
Financial statement effects
Evaluation by the lessee

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_______Total chapters: 08
Total
Lectures:48
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Recommended Books:
1. Financial management 11th Edition by Eugene F. Brigham
2. Financial Management by Kent Baker.