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BSA-125: Financial Management II


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BSA-125 is a continuation of Financial Management I and provides a conceptual framework within key financial decisions and risks relating to corporations are analyzed. This analysis considers shareholder wealth maximization, long term financing, capital budgeting, risk management (the nature of risk, risk concepts, benefit of risk management, risk management processes, enterprise-wide risk management, managing operating risk and financial risk, credit risk models including Base II) capital acquisition analysis, capital structure decision, valuation of financial instruments, and the dividend decision. It also examines the main types of derivate contracts: forward contracts, futures, swaps and options, and how these instruments are used in managing and modifying financial risks

Course Description:

This is the final course of the two-part course in Financial Management . The course is designed for accountancy students and will therefore cover advanced finance topics covered in the Certified Public Accountant’s Board Examinations. Despite of this, great emphasis will be placed on economic and business perspective rather than just on strictly accounting focus. The course will cover topics on management of working capital. Then it will progress to the concept of the cost of components of capital and weighted average cost of capital. Moreover, leverage and optimal capital structure will also be taken. Finally, it will end with financial forecasting and derivatives and risk management.

 
 
Course Objectives:
1. Have a mastery of the concepts of weighted average cost of capital.
2. Have a mastery of the concepts of leverage and capital structure.
3. Have an extensive knowledge in working capital management.
4. Have an extensive knowledge in financial forecasting.
5. Have a mastery of the concepts of financial derivatives and risk management..

6. Appreciate the role of the principles of cost of capital, optimal capital structure, risk management in maximizing the shareholder’s wealth.

7. Develop a sense of integrity and moral values in the practice of the finance profession.
 
 
 
Course requirement:
CASE STUDY WITH ORAL PRESENTATION (TO BE ASSIGNED ON A PER GROUP BASIS)
 
 
Grading System:
 
FIRST HALF
SECOND HALF
TOTAL
CLASS STANDING
 
 
CLASS STANDING
 
 
 
Quizzes
20%
 
Quizzes
25%
 
 
Assignment, Attendance, Recitation
5%
 
Assignment, Attendance, Recitation
5%
 
 
TOTALCLASS STANDING
 
25%
TOTALCLASS STANDING
 
30%
55%
PRELIMINARY EXAMINATION
 
20%
FINAL EXAMINATION
 
25%
45%
TOTAL
 
45%
TOTAL
 
55%
100%