UNIVERSITY OF BURAO

COURSE OUTLINE

Course Title: Financial Management 1

Credit Hours: 3 Credit Hours

Instructor: Abdihakim Abdillahi Aden—Tiyari (BA, MBA).

Course description

This course focuses on reviewing financial reports, monitoring accounts, and preparing

activity reports and financial forecasts. Financial management also investigates ways to

improve profitability, and analyze markets for business opportunities, such as

expansion, mergers or acquisitions. It also studies the concepts and tools of corporate

financial management consisting of financial analysis, capital budgeting and capital

structure.

Course objectives

Financial Management: Students in this part of the course shall:

 Gain an introduction to financial management techniques, efficient and effective

management of money.
 Know how to raise capital and how to allocate capital.

COURSE CONTENTS

1. CHAPTER 1: Introduction to Finance

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 1.1. Introduction of finance, Meaning of Finance and Classification of Finance.
1.2. Financial Markets Instruments- Institutions.
2. CHAPTER 2: The Role and Importance of Financial Management
2.1. Definition of Financial Management
2.2. Scope of Financial Management
2.3. Objectives of Financial Management
2.4. Approaches to Financial Management
2.5. Functions of Finance Manager
2.6. Importance of Financial Management

3. CHAPTER 3: Financial Statement Analysis

3.1. Introduction, Meaning and Definition
3.2. Types of Financial Statement Analysis
3.3. Techniques of Financial Statement Analysis
3.4. Difference between funds flow and cash flow statement
4. CHAPTER 4: Ratio analysis
4.1. Meaning of Ratio and Ratio Analysis

4.2. Importance of Ratio Analysis

4.3. Limitations of Ratio Analysis

4.4. Classification of Ratios

5. CHAPTER 5: Time Value of Money

5.1. Terminologies Used in Time Value of Money
5.2. Compound Value of Annuity
5.3. Sinking Fund
6. CHAPTER 6: Working Capital Management
6.1. Introduction and Meaning of Capital
6.2. Fixed capital
6.3. Working capital
6.4. Meaning of capitalization
6.5. Types of Capitalization

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Reference book:
Financial Management C. Paramasivan, T. Subramanian

ASSESSEMENT & EVALUATION

No Mode of Assessment Points to be allotted(weight)

1 Midterm Exam 30

2 Class Participation & Assignments 10

3 Final Exam 60

Total 100

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