AMOUD FACULT OF

UNIVERSIT ECONOMICS AND

POL SCIENCE
Y
COURSE OUTLINE

Course Code: IBF 6321

Course Title: Financial Management
Contact Hours: 45 Credit Units: 3 Duration: 15 Weeks
Facilitator: Hared Omer Alale 0634511559,
Email: hared922@gmail.com

Course Background

The Financial Management (FM) is designed to provide students with the financial
management tools necessary to support decision making. The focus is on understanding
the role of financial management within an organizational context and developing a
broad range of financial skills. These skills are of particular relevance to the roles of
enabler and innovator and business partner. In each of the topics in this module, the
focus is on the application of numerical financial management techniques, but students
are also expected to interpret their results and discuss non-financial issues that might
impact on a decision.

Course Aims
On successful completion of the course students will be able to:
 Understanding and analyzing major financial problems of modern firm in the market
environment.
  How financial information can be used to improve the quality of management decision-
making.

Course objectives:

The main goal of this course is to develop a foundation of financial management

concepts. This will enable to the student to understand how corporations make
important investment and financing decisions, and how they establish working capital
policies. The course also lays a foundation for more complex financial topics that arise
in additional elective courses in finance. This course in financial management describes
the corporation and its operating environment; it will help any future manager to
understand how the finances of a company work, and how they will be interfacing with
finance

Learning Outcomes

Upon completion of this course, students will be able to complete the following key tasks:

1. Demonstrate an understanding of the overall role and importance of the finance

function.
2. Demonstrate basic finance management knowledge.
3. Be familiar with basic financial decision making and valuation concepts;
4. Understand and solve problems involving financial mathematics;
5. Explain the basics of financial statements and financial statement analysis.
6. Expand the concept of relevant inflows and outflows to analyze and make long-
term, capital budgeting decisions.

Course description:

The course focuses on the tools for determining and optimizing financial resource
requirements, and the use of those to maximize stakeholder’s wealth. By end of the course,
students able to use necessary appropriately to maximize wealth of an organization, course
content: overview of financial management; meaning, scope, significance, activities
performed by financial managers, goal of the firm, the agency problem. Financial analysis
and planning: tools and techniques; meaning and application of time value of money in
corporate finance; valuation of long-term debt and equity securities: the what why, and how.
Cost of capital: Meaning and process of determination; capital budgeting, long-term
investment: types, assumption, principle, and techniques; uncertainty and the trade-off
between risk and return; security market efficiency; leverage, optimal capital structure,
dividend policy decision.
Course Content

Period Content Specific Content Duration (Week)

1-2 The Role of The Goal of the Firm: the primary goal 2
Financial of the firm is to maximize the wealth of
Management its stockholders and Value creation
occurs when we maximize the share
price for current shareholders. Corporate
Governance: It encompasses the
relationships among a company’s
shareholders, board of directors, and
senior management and provide the
framework within which corporate
objectives are set and performance is
monitored. (ASSIGNMENT 1).
 3-5 The Business, Tax, The Business Environment: to 3
and Financial understand the role of the managers and
Environment the form of Business organization that a
firm chooses is one aspect of the
business setting in which it must
function .and their accounting and
advantages and disadvantages. The Tax
Environment: most business are effected
either directly or in directly by taxes,
through taxing power, federal, state and
local governments have a profound
influence on the behavior of the
business and their Owners. The
Financial Environment: in all business
operates within financial system which
consist of a number of institutions and
markets serving business firm.
(ASSIGNMENT 2).
6-7 Time Value of Future value: The process of 2
Money determining the value of a cash flow or
series of cash flows sometime in the
future when compound interest is
applied. Present value: The process of
calculating present values, or
discounting, is actually the opposite of
finding the compounded future value.
Perpetuity: a stream of equal payments
expected to continue forever
(ASSIGNMENT 3).
8-9 Bonds and Bonds Distinctions Among Valuation 2
Valuation Concepts: The term value can mean
different things to different people.
Bonds and its value: A long-term debt
instrument in which a borrower agrees
to make payments of principal and
interest, on specific dates, to the holders
of the bond. (ASSIGNMENT 4).
10-12 Stocks and their Stocks and their valuation: are a general 2
valuation term used to describe the ownership
certificates of any company. A share, on
the other hand, refers to the stock
certificate of a particular company.
Holding a particular company's share
makes you a shareholder. Preferred
Stock Valuation: is a class of ownership
in a corporation that has a higher claim
 on its assets and earnings than
common stock. Common Stock
Valuation: represents a residual
ownership position in the corporation.
And it takes Pro rata share of future
earnings after all other obligations of the
firm. (ASSIGNMENT 5).
11-13 Basic of Capital Capital budgeting: The process of 2
Budgeting planning expenditures on assets whose
cash flows are expected to extend
beyond one year.Net Present Value: is
the excess of the present value (PV) of
cash inflows generated by the project
over the amount of the initial investment
(I): Payback period method: the number
of years required to recover a project’s
cost, or “How long does it take to get
our money back?”(ASSIGNMENT 6).
14 Working Capital NET WORKING CAPITAL: involves 1
Management regulating the various types of current
assets and current liabilities. Working
Capital Management: day today control
like cash, Accounts receivable, Accruals
and accounts payable. (ASSIGNMENT
7).
15 Islamic Finance This Unit examines the concept of 1
Contracts Islamic contracts which is a
fundamental aspect of Islamic banking.
Islam protects the interest of the less
privileged and provides a
comprehensive system by which such
relationships could be maintained. In the
area of finance, human beings could
sometimes be tempted to oppress his/her
fellow mates, but with Islamic
regulation, this is not impossible.
(ASSIGNMENT 7).

Methodology

Individual, paired, and class room competition, with regular instructor feedback and coaching.
Class lectures will define, analyze and resolve issues and raise subsequent ones. Students will
study the book and other readings, attend lectures, participate in class lectures, solve problems
from the book, perform other assignments.
Evaluation

The course evaluation will comprise of Course and end semester examination. Course will
constitute 40% of the midterm, attendance, and assignment while the end semester exams will
constitute 60% of the total marks.

Attendance
Students are required to have attendance of lectures to be able to sit for end semester
examination.

Participation
Students are encouraged to participate in class discourse which will play a significant role in
assessing the course work.

Plagiarism
The university, in its examination policy, has specific regulations on plagiarism. This should be
emphasized in each course.

References:

James C. Van Horne /John M. Wachowicz , Jr. Fundamentals of Financial Management 13

Edition.
Eugene/ Joel F. Fundamentals of Financial Management McGraw Hill

Brealey/ Myers. Principles of Corporate Finance.12th Edition. - B&M

Brealey/ Myers. Fundamental of Corporate Finance. Second Edition. 1999.

Effective Date

March 1st , 2022

Signed

A course outline must be signed the course lecturer and by the dean before it can be accepted as
a teaching tool. Note that a course outline is an official university document.

………………………………………. ……………………………………….
Mr. Hared Omer Allale Mr. Abdirizak Mahmud Osman
MBA –Finance, PGD-IBF , Dean, FEPS
DIB , BA Lecturer