Syllabus

Fundamentals of Financial Management 2

Credit units 3 units

Code MAN2102

Facilitator Prof. Dr. Eduardus Tandelilin, MBA., CWM., CSA

Office Master of Managemen Program (MM-UGM)

Faculty Economics and Business, Universitas Gadjah Mada
Yogyakarta, Indonesia 55281
Phone : +62 274 564388
e-mail : eduardus.tandelilin@gmail.com

Consultation Monday, 12.30 – 13.30 (at MM FEB UGM)

Time Tuesday, 12.30 – 13.30 (at FEB UGM)
or with appointment

Prerequisite MAN2101 (Fundamental of Financial Management 1)

Course The course is the continuation of Financial Management 1 course

Description which introduces students to the concept of financial management
of business corporations. The course involves studies on decision-
making utilizing financial resources available to the firm from the
perspective of the manager. The course emphasizes the
understanding of finance theory and working knowledge of the
financial environment in which the firm operates in order to
develop appropriate financial strategies. Therefore it starts with the
review of some fundamental concepts on financial management 1.
The course covers how much firm should borrow (financing
decisions) is discussed in capital structure theories followed by
payout (dividend) policy, working capital management. Special
topics in financial management, including derivatives and risk
management, multinational financial management, hybrid
financing, and mergers & acquisition. This course also discusses
some cases help students understand the course material and prepare
them for the exams.

Learning After completion of this course, students are expected to be able to:
Objectives 1. Explain how to obtain external financing through venture
capital and IPO.
2. Distinguish concepts, advantage and disadvantage types of
capital sources for firms in different characteristic of risk and
return, and industries.
3. Understand capital structure theories and payout policy,
evaluate and make decision based on the theories
4. Understand working capital management
 5. Analyze special topics in financial management: (1)
derivatives, risk management and multinational financial
management, (2) hybrid financing, and (3) merger and
acquisition.
6. Analyze and plan financial conditions of corporation based
on financial statement information.

Book and 1. Brigham and Houston, adapted by Jun-Ming, Yoon Kee and
Reading Arifin. 2018. Essential of Financial Management. Fourth
Material Edition, Cengage Learning Asia Pte Ltd, Singapore.
2. Additional materials will be distributed later.

Students’ Class participation. Students are highly expected to contribute

Responsibilities ideas, thoughts, experiences, and argument to the class discussion.
Although overviews of key points and issues will be provided, we
strongly recommend that students comprehend the materials in
details, raise questions and ideas, and create a “lively” class,
meaning that you must read and prepare readings assigned prior to
coming to the class. Besides, students are encouraged to raise
comments on, questions, or critiques to the other presenting groups.

Academic Attendance/Lateness
conduct 1. Attendance should be 75% of the entire course schedule.
Failure to meet the attendance policy will result in a downgrade
of marks into F.
2. Students who come late will not be permitted to join the class.

Missed Exam/Assignments
1. No make-up exam will be granted for any reason
2. Late submission might lead to grade penalty

Academic misconduct/dishonesty (cheating and plagiarism)

would lead to a serious academic penalty
1. Academic misconduct is defined as acting dishonestly or
unfairly in connection with any examination or other academic
work. It includes
i) withholding or falsifying information relevant for
admission, advanced standing, deferred assessment or leave
of absence;
ii) presenting copied, falsified or improperly obtained data as
if it were the result of laboratory work, field trips or other
investigatory work;
iii) including in the student’s individual work material which is
the result of significant assistance from another person if
that assistance was unacceptable according to the
instructions or guidelines for that work;
iv) assisting another student in the presentation of that student’s
individual work in a way that is unacceptable according to
the instructions or guidelines for that work;
 v) cheating; or
vi) plagiarising.

2. Cheating means dishonest conduct in relation to assessment. It

includes
i) copying from other students;
ii) use of cheat notes and inappropriate use of graphic
calculators in examinations;
iii) accessing inappropriate information, materials or equipment
within an examination environment;
iv) falsification of identification; and
v) substitution of material.
3. Plagiarism means knowingly presenting the work or property of
another person as if it were one’s own without appropriate
acknowledgment or referencing. It includes
i) word for word copying of sentences or paragraphs from one
or more sources which are the work or data of other persons
(including books, articles, theses, unpublished works,
working papers, seminar and conference papers, internal
reports, lecture notes, tapes or works of creative art);
ii) closely paraphrasing sentences, paragraphs or themes;
iii) using another person’s ideas, work or research data without
due acknowledgment;
iv) submitting work which has been produced by someone else
on the student’s behalf as if it were the work of the student;
v) copying or submitting computer files in whole or in part
without indicating their origin;
vi) in the case of collaborative projects, falsely representing the
individual contributions of the collaborating students where
individual contributions are to be identified.

Learning An experiential approach. Continuously and consistently, students

method are assigned to construct experiential observations on managerial
cases and practices, and subsequently report the findings to the
instructor.

Internet exploration. Students are encouraged to harness the

advancement of information technology in exploring knowledge
and opportunities. Remember that in current circumstances, a
clever person is not she being able to answer all questions; rather, it
knows where to find answers.

Homework Assignments. Student will be assigned individually to

solve problem at the end of each chapter. It is expected that the
student works diligently on these assignments so as to apply
theoretical concepts to real problems and develop students’
analytical and problem solving skills. Each student needs to submit
only write-up of each homework assignment. Homework
assignments must be submitted in hardcopy. Only those students
whose names appear on the assignment will receive credit.
 Homework assignments will be announced once I have prepared
them. You will have roughly one week to complete the assignment.
Completed assignments must be turned in to the class on the due
dates to receive full credit. Any late assignment will earn zero
credit – no exceptions. The assignments will be returned during the
tutorial sessions. During the tutorials you will have the opportunity
to ask questions and discuss any problems with tutor or ask me in
the class meeting.

Case analysis. Student will be randomly distributed into groups.

Besides functioning as a discussion forum, the group is required to
submit a case write-up and power-point presentation. It is expected
that the student works diligently on these cases so as to apply
theoretical concepts to real problems and develop students’
analytical and problem solving skills.
The length of the case write-up must not exceed ten pages of A4-
sized paper, not including figures, tables, charts, or other
appendices. The report has to be typewritten with 1.5-spaced text
system. Quantitative analysis supporting recommendations may be
attached in appendices whilst figures, table, or charts summarizing
the quantitative analyses can be included in the text. Grading will
be based on five criteria: (1) clarity, (2) completeness, (3)
conciseness, (4) correctness, and (5) consistency. Late submissions
will not be accepted without prior approval of the lecturer. All
request for extension should be directed to lecturer(s) by e-mail at
last two days before due date for submission. Extensions will be
granted for medical reasons upon receipt of medical certificate, or
in exceptional circumstances in consultation with the individual
lecturer.

Tutorial. Tutorials are mandatory. You should go to the tutorial

section, except those have another class. Your grade for tutorial
activities will depend on your attendance and participation.
Tutorials do not meet every week. The schedule will be announced
later.

Examinations. Quiz 1 before Mid-term and Quiz 2, before final-

exams to examine students’ knowledge and understanding on
concepts learnt in the lectures.

Grading WEIGHT SCORE:

Assignment and Class participation : 10%
Quiz 1 and 1 : 20%
Case report and presentation : 20%
Mid-Term Exam : 25%

Final Exam : 25%

 Topics and Sources

Sources
Session Topic(s)
Overview of Financial Management 1 and
1. Real Option and Other Topic in Capital BH 1-13 and 14
Budgeting
2 Capital Structure and Leverage BH 15
3 Distribution to Shareholders: Dividends
BH 16
and Share Repurchases
4 Case 1: Analysis, Report & Presentation Handout
5 Working Capital Management BH 17
6 Case 2: Analysis, Report & Presentation Handout
7 Derivatives and Risk Management BH 18
8 Mid Term Examination BH 14-18
9 Multinational Financial Management BH 19
10 Case 3: Analysis, Report & Presentation Handout
11 Hybrid Financing: Preferred Stock,
BH 20
Leasing, Warrants, and Convertibles
12 Merger and Acquisition Management BH 21
Case 4: Analysis, Report & Presentation Handout
13 Case 5: Analysis, Report & Presentation Handout
14 Case 6: Analysis, Report & Presentation
15 Wrap-up CH 1-21
16 BH 19-21
Final Exam
Case
Notes: All assignments and others materials to be announced.