Topic 1 - Overview of Finance For Managers-3p

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3/30/2021

FINANCE FOR
MANAGERS

2021
PhD. Son Duong Tran - School of Management

COURSE GUIDE

2021
PhD. Son Duong Tran - School of Management

Course Descriptions

Number of
Course Title Course Code Level
Credits
• Finance for • MAN502090 • 3 • Undergraduate
Managers level

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Time Allocation

Student should be expected to spend 10 hours per week on these


learning activities for this course.
Attendance at classes: 3.5 hours per week
Reading and review: 3.5 hours per week
Assignments: 3 hours per week

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Course Aims & Outcomes


This course is designed to equip students with basic
knowledge of financial management and consolidate
students with modern knowledge of financial analysis,
risk analysis and profitability, and current financial
management models.

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Course Aims & Outcomes

• Understand the nature of financial management issues


1.

• Understand how to analyses the financial statements of a company, evaluate


securities or assets, make long-term investment decisions, determine the
2. company's capital expenditures or how to manage the company’s capital.

• Provide students a theoretical foundation of financial management so that


students can study in-depth on their own.
3.

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Relationship of Course’s outcomes to the others

Students can use the knowledge of financial


management to create spreadsheets in project
appraisal, business planning, or capital needs
planning for the company. Use financial
knowledge to assess the risk of the business.

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Student Responsibilities

Workload
• Read textbook and additional references before attending at classes
• Do exercises in textbook or group as instructed by the lecturer

Attendance
• Participate at least 80% of lectures
• Discuss questions or do exercises related to the subject that lecturer
delivers

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Teaching Strategies

Students do case studies


and exercises in textbook
or which lecturer deliver
Lecturer gives students to strengthen knowledge
issues related to content and develop required
of the course to discuss, skills
Lecturer introduces then, summarizes
concepts and the students’ opinions and
theoretical framework of emphasizes noticeable
this course theories in theoretical
framework of this course

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Evaluation

Tasks Weights
Weekly assignment and Attendance 10%
Group case study 20%
Essay 10%
Presentation 10%
Midterm exam 20%
Final exam 50%
Bonus (discussions; in-class exercises; quizzes) TBA
Total 100%

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Evaluation
Assigned tasks
 Read document (chapters of textbook and reference book)
 Do weekly LMS assignments
Attendance
 There are two random attendance checks
Midterm exam
 Review the chapters recommended for the midterm exam
 Do homework recommended midterm exam
 Type of examination: written exams (Theory and exercises)
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Recommended Resources
- Textbooks:
Eugene F. Brigham, Michael C.Ehrhardt,
Financial management. Theory and
Practice. Cengage Learning, 16e, 2019 [1]

- Additional Reference:
Brealey, Myers and Marcus, Fundamentals of
corporate finance. International Edition, Mc.
Graw Hill Inc. 2011 [2]
Eugene F. Brigham, Financial management.
Florida University, Cengage Learning Asia
Pte Ltd 2019 [3]

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Sessions Topics Textbooks Homework Learning


Course objectives
Schedule 1 Module 1
An Overview of Financial Management
Chapter 1 [1] Reading Ch. 1
2 [1]
(1) & (2)

2 Module 2 Chapter 2 [1] Chapter 3 [1] (1) & (2)


Analysis of Financial Statements Ch.2: ST-1 [1]

3 Module 2 Chapter 3 [1] Reading Ch. 4 [1] (2) & (3)


Analysis of Financial Statements (cont.) Ch.3: ST-1, ST-2 [1]

4 Module 3 Chapter 4 [1] Reading Ch. 5,7 [1] (1) & (2)
Time Value of Money Ch.4: ST-1,2,3 [1]
5 Module 4 Chapter 5 [1] Reading Ch. 6 [1] (1) & (2)
Security Valuation Chapter 7 [1] Ch.5: ST-1 [1]
Ch.7: ST-1, 2 [1]
6 Module 5 Chapter 6 [1] Reading Ch. 9 [1] (2) & (3)
Risk and Return Ch.6: ST-1,2 [1]
Midterm Exams Part 1: 60 min. Exam part 1:
chapter 1-5
7 Module 6 Chapter 9 [1] Reading Ch. 10, 11 [1] (2) & (3)
The Cost of Capital

8 Module 7 [1] Chapter 10 [1] Chapter10 (2) & (3)


Capital budgeting
9 Final Review Case study presentation (2) & (3)

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Lecturer information

Dr Son Duong Tran


sontd@ueh.edu.vn
Office hour: School office B1.1202 13h30-16h Thurs.
som.ueh.edu.vn / chungly.vn
https://scholar.google.com/citations?user=_0p51j4AAA
AJ&hl=vi

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OVERVIEW OF
MANAGERIAL
FINANCE

2021
PhD. Son Duong Tran - School of Management

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Managerial Finance vs. Business Finance and Corporate Finance


Business Finance vs. Managerial Finance vs. Corporate Finance
These terms are sometimes confusing. Some people even use them interchangeably.
 Business finance could be looked at as the pre-requisites of Managerial finance
and Corporate finance. It includes basic tools like Time value of money(TVM),
financial statement analysis, basic valuations (e.g stocks and bonds), and basic
capital budgeting.
 Managerial finance is a step higher (and thus narrower in terms of scope) than
business finance. It adds some topics like financial planning (proforma analysis),
short-term financial management (e.g. cash, inventory, A/C receivables) plus
“corporate finance”.
 Corporate finance is the subset of managerial finance which concentrates on
three major decisions that directly affect the firm value.

Note: - This slide is for clarification, not for the exam -

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Finance for managers

The objective of the course is to provide the student with


the basic analytical tools required to make value-creating
financial decisions.
The student is provided with an introduction to theoretical
foundations and practical applications in financial decision
making.
Topics covered in the course include analysis of financial
and operating performance, assessment of financial health,
financial planning, working capital and growth
management, the time value of money, risk-return trade
off, valuation of financial and real assets, investment,
funding, and distribution decisions in the context of
nonfinancial firms.

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Major function of Managerial Finance

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Major function of Managerial Finance

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Types of Financial Decision

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Types of Financial Decision

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Financial Markets

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Financial Markets

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Financial Institutions

Investment banks and brokerage activities (JPMorgan; Merrill Lynch-


Bank of America (2008))

Deposit-Taking Financial Intermediaries: Credit Unions; Commercial


Banks

Investment Funds: Mutual Funds (Money market funds; exchange


traded fund (ETF)); Hedge Funds; Private Equity Funds (The Carlyle
Group, Clayton Dubilier & Rice, and Merrill
Lynch Global Private Equity)

Life Insurance Companies and Pension Funds

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Financial Institutions
Top 10 insurance companies in Vietnam 2019

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Financial Institutions

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Financial Institutions
Danh sách Ngân hàng tại Việt Nam tính đến Quý II/2019

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Decision making process

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Decision making process

OUTPUTS
INPUTS TOOLS

TECHNIQUES;
FINANCIAL MODELS;
FINANCIAL THEORIES FINANCIAL
DECISIONS

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Discussion

What is THE PRIMARY OBJECTIVE OF THE CORPORATION?

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The big picture

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Q&A
THANK YOU
32

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