FACULTY: BUSINESS AND MANAGEMENT

DEPARTMENT: ACCOUNTING AND FINANCE

Course Name: INVESTMENT ANALYSIS (BBA 314)

SYLLABUS AND DETAILED COURSE GUIDE

Part 1: Course Description and Resources

Lecturer: MUHWEZI MOSES
Office: CUU- KINGS GATE –KG 7/ KG 9
Office Hours: 8:00 -11:00am Tuesday & Saturday 11:15-2:15pm
Contact Hours: 3 hrs
Office/Mobile Telephone: 0772327732
Lecturer’s E-mail: mmuhwezi@cavendish.ac.ug

Course Description
This course is concerned with the planning, raising and allocation of scarce
resources within the firm in order to attain the objectives of the firm

Prerequisites

This course aims at enabling students understand

and discuss the major decisions areas and the
important concepts used in Investment Analysis
The Course aims to provide latest Investment skills to practitioners.
Knowledge gained here is applied in other Courses studied earlier and is a
critical in appreciating the role of an accounting and finance professional with
emphasis on the analysing investments before capital is invested as it may
be difficult to reverse.

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Required Texts

References:
 Brigham, E., & Ehrhardt, M. (2013). Financial
management: theory & practice. Cengage Learning.
 Brigham, E., & Houston, J. (2011). Fundamentals of
financial management. Cengage Learning.
 Shapiro, A. C. (2008). Multinational financial management.
John Wiley & Sons.
 Brigham, E., & Daves, P. (2012). Intermediate financial
management. Cengage Learning.
 Van Horne, J. C., & Wachowicz, J. M. (2008).
Fundamentals of financial management. Pearson Education.
 Ross, S. A. (2008). Modern financial management-/Stephen
A. Ross...[et al.]. New York [etc.]: McGraw-Hill/Irwin.

Course Delivery

To effectively fulfill its stated goals, this course will make use of the
following teaching strategies:

Lectures-The instructor will lecture some topics deemed to be very

hard to understand

Discussions-Some topics will be discussed by the students themselves

and will be guided by the instructor

Weekly problem sets-A set of problems will be developed on a

weekly basis to help students prepare for their test and final exams.

Group work or teamwork-Some assignments will be offered to a

group of students

In-class presentations-Students soon as doing their assignments in

class, will be required to present their work in one hour at the end.

The course materials will be hosted on the CUU Moodle platform

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 Part 2: Course Objectives and Student
Learning Outcomes
Course Objectives
General Learning Outcomes for Employability:
1. Communication skills: Students write summaries of concepts learned in each
course as part of the effort to develop strong writing skills.
2. Teamwork: Students demonstrate teamwork through active collaborative
learning including group projects and presentations.
3. Digital literacy: Students use digital tools, design and make Excel and PowerPoint
presentations of concepts learned to enhance their digital literacy and public
speaking skills.
4. Learning how to learn: Students demonstrate use of online resources in learning
as part of the process of learning how to learn and becoming lifelong learners.
5. Analytical skills and ability to apply new knowledge: Students demonstrate
analytical skills and application of new concepts.
6. Problem solving: Students work individually and in groups to practice problem
solving.
7. Critical Thinking: students apply critical thinking skills by asking questions and
demanding evidence (5Ws and 1H: what, when, where, who, why, how) in order
to become better thinkers.

Specific Learning Outcomes:

By the end of this course, students should be able to;

 At the completion of the course students should be able to show:

 An awareness and understanding of the Investment theory and concepts.
 The ability to use cognitive skills in analysis in decision making and their limitations
 The ability to apply the key valuation concepts and methodologies of Investment
techniques used to appraise a project/ An investment

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Part 3: Weekly Topics and Assignments

WEEK TOPICS Tutorials/Assignments/ Date to

Outline of content, References & homework/Discussions/ hand in
online Resources for the week. Presentations work

Lecturer’s Activities Students Activities

1. Introduction Lecture Discussions
to the  Self-introduction &
Course and Expectations Expectations and rules of
Overview the game from both the
 Short introduction to Course students and lecturer.
outcomes: .
 Introduction to the Course and
Overview and explanation of
syllabus.
2. Topic 1: Lecture Discussion Question In class
 Investment Appraisal
Introduction  Objective of Investment - Explain the need for
to the Analysis investment analysis
Course and  What is financial management
-Why organizations need
Overview  Functions of financial to be careful while
management making investment
 Financial planning decisions
 Financial control
 Financial management
decisions
 Financial objectives of
organizations- profit
 Why it is criticized
 Non - financial objectives
 Stakeholders and their needs
 Forms of business
organizations
 Financial planning and
Forecasting
 Corporate governance and
Agency theory

3 Lecture Group presentation Next
Topic 2.  Short term sources - Explain the different lecture
Sources of  Long term sources Sources of venture

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 Finance  Internal sources capital and costs
 External sources associated with each
 Factors to consider before source
borrowing
 Capital and Money markets
4 Topic 3: Lecture Discussion Questions Next
The  Definition lecture
Investment  Why we need to be careful in Discuss relevant and
Decision capital budgeting irrelevant cash flows in
investment appraisal
(Capital  Capital budgeting process/
Budgeting) stages
 Investment
appraisal/Evaluation
5 Topic 4: Lecture Group Discussion
Investment  Non discounting techniques Questions
selection  PBP
 Benefits and weakness  How to
techniques/Ap
 ARR determine
praisal tools
discount factor
 Discounting techniques  Using present
 NPV value tables and
annuity tables
 IRR
 Profitability
index
6 Topic 5. Lecture Next
Risk in  Definitions Explain the week
investment  Types of Risks and causes ie Techniques used
Appraisal  Exchange rate to incorporate
 Foreign currency Risks in
 Interest rate parity investments
 Purchasing power parity
 Factors to include
 Mitigating/Hedging/Incorporat
ing Risks
7 Topic 6. Lecture Individual Questions
Time value  Definition
of Money &  Why money today is more Financial Analysis
Financial important than money  Importance of
Analysis tomorrow Ratios
 Discounting future cash flows  Limitations
(PV)  Types of Ratios

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  Managing inventories ie
 Liquidity
 Profitability
 Efficiency
 Gearing
 Investment

8 Topic 7. Lecture Personal assignment Next

Capital Discuss the causes of lecture
Rationing &  Definition Financial distress and
Financial  Forms of capital Rationing suggest solutions
distress Selecting investment in a capital
Rationing situation

Financial distress
 Meaning of cash management
problems
 Causes
 Ways to manage financial
distress

10 Topic 8. Lecture Group

Cost of  Meaning Discussion
Capital &  Limitations of dividend modal
Dividend  Factors influencing dividend Dividends Policy
policy decisions  Meaning of
 Cost of debt dividend
Types of debt  Theories of
dividend
 Factors
influencing
dividend policy
 Dividend
payment
 Scrip dividend
Share repurchase
11. Topic 9. Lecture Group discussion Next
Capital lecture
structure  Meaning of equity and debt  CAPM
 Factors for choosing capital  Limitations of
structure CAPM

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  Capital structure theories ie
 Traditional view
 M and M view of WACC

12. Topic 10. Lecture Individual assignment Next

Working  Contents of working capital lecture
capital mgt  Determinants of working  Forecasting cash
capital disbursements
 Aspects to look at in Working  Cash budgets and
Capital their preparation
 Factors to consider in  Cash operating
evaluating short term cycle
investments.

 Cash management
 Motives of cash
 Functions of cash management
 Management of cash surplus
 Control of cash collections
 Control of cash disbursements

13 
14 Topic 12.  Meaning Presentation In class
Managemen  Credit policy and its contents  Debt aging
t of Trade  Why credit policy must be in schedule
Receivables place/Justification  Debt factoring
 Factors to consider in  Methods to
extending credit collect Accounts
 Determinants of funds invested receivables
in debts  How to recover
money from
difficult debtors

15 End and
review of
course
16 Exam

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Part 4: Grading Policy
Graded Coursework, assignments and examinations

ASSESSMENT COMMENTS % OF FINAL GRADE

Test 1 (or first 10%

assessment)

Test 2 (or second 10%

assessment)

Teamwork 5%

Presentations 5%

FINAL EXAM 70%

TOTAL POINTS Add up all points 100%

Out of 100%

Letter Grades

Letter Grade Percentage Performance

A 80 -100% Excellent Work
B+ 75-79% Very Good Work
B 70-74% Good Work
C+ 65-69% Above Average Work
C 60-64% Average Work
D+ 55-59% Below Average Work
D 50-54% Poor Work
F 0-50% Failing Work

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Part 5: Course Policies
Class Attendance, Participation and
Emergencies
1. Attending classes is mandatory for all students.
2. Participation in group work or teamwork is required whenever such
work is assigned.
3. In case of any emergency that disenables a student from attending
classes or completing work, the student is expected to communicate
with the lecturer or dean as soon as possible.
4. Students with disabilities should inform the dean of the faculty of
any special needs that they may have.
5. All students must do all assignments and work given to them.
Otherwise they will not be allowed to attend classes
6. All students must attend their classes on time.

Late Work and Missing Assessments

1. Each student is responsible for making sure that his or her work is
done on time.
2. Any student who misses assessments or misses class should talk to
his or her lecturer or professor as soon as possible and seek the
lecturer’s advice on how to make up for work missed or
assessments missed.
3. Students who expect to miss classes or to miss assessments for
health reasons or special family reasons should communicate with
the lecturer or professor for the course as soon as possible.
4. Students should note that there may be a penalty for late work,
and missed assessments. The penalty may include not being
allowed to sit for the final examination.
5. Students who are unable to keep up with class work should consult
with the course lecturer or faculty dean or dean of students, and
seek advice.

Integrity and Zero Tolerance for Plagiarism

1. All students are expected to abide by the university’s policy on
ethical conduct.

2. Any student involved in cheating in tests, coursework or

examinations will be suspended pending investigations, and may be
expelled from the University.

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3. Any student involved in buying or selling tests or examinations will
be suspended from the University pending investigations.

4. Any student involved in using sexual favors in exchange for marks

will be suspended pending investigations, and may be expelled from
the University.

5. Plagiarism means presenting other people’s work from online or

from other sources as your own. Plagiarism is a serious offence and
will not be tolerated, and offenders will fail that particular course.

6. Students are required to read the University’s policy on

examinations.

Make up of Missed Classes

1. There will be special make up classes for each class that is missed
because the lecturer could not come to class on a particular day

2. Students are required to treat make up classes as part of the

regular learning program

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