Financial Management MIT Course Outline

I.             Course Description:

This course prepares the students to analyze financial statement and examine financial decision-making. Topics include understanding financial statements, funding decisions, the use of financial tools, cost analyses, and risk management tools.

II.            Bases of Evaluation:  

1.      Course requirements that are evaluated based on the rubrics.

2.      Research Output

3.      Midterm and final major examinations.

4.      The standard grading system of the University.

III.          Grading System:

     Midterm Score                =          33% Class Standing + 33% Research + 34% Midterm Exams

     Tentative Final Score      =          33% Class Standing + 33% Research + 34% Final Exams

     Final Score                        =          33% Midterm Score + 67% Tentative Final Score

Note:             Class Standing is composed of activities such as group dynamics, laboratory activities, seat works, quizzes, assignments, and participation

.           .

VI.         Course Content:

TOPICS

Unit 1.  Introduction to Financial Management and the Accounting Language 1.   Basic concepts of Financial Management and Accounting 2.   The Financial Management Framework ( 10 Axioms of FM) 3.   The Fundamentals of the Accounting Process 4.   The Accounting Cycle 5.   Understanding the Financial Statements 6. Costs concepts and behaviors for financial reporting and cost analysis used in decision making.

Unit 2.  Financial Information in Action 1.   Analyzing Financial Statements a.    Background analysis b.    Areas in Financial Analysis b.1. Liquidity b.2. Profitability b.3. Asset Management b.4. Solvency b.5. Marketability/ value analysis       c. Methods in Financial Analysis            c.1. Horizontal            c.2. Vertical            c.3. Ratio Analysis            c.4. Du Pont Expansions 2. Financial Planning and Proforma financial statements      a. Operating Budgets      b. Financial budgets      c. Master budgets      d. Projected Financial Statements

Unit 3. Analyzing Financial  Information for Short Term Decision Making Behavioral financial reports Cost-volume-profit analysis Variable and Absorption costing Differential Analysis and relevant costing Working Capital Management decisions

Unit 4.  Analyzing Financial  Information for Long Term Decision Making 1.    Financial Risk and Return analysis 2.    The role of Time value of money and cost of capital 3.    Investment decisions 4.    Capital budgeting 5.    Financing decisions 6.    Debt and Equity Financing Analysis

VI. References:

RESOURCE TYPE	RESOURCES
Books	Titman, S., Keown, A. J., Martin, J. D. (2011) Financial management : principles and applications. (11th ed.) Boston : Prentice Hall.
	Jordan, Bradford D.  Fundamentals of investments : valuation and management.  5th ed.  Boston : McGraw-Hill, c2009.
	Gitman, Lawrence J.  Fundamentals of investing.  Twelfth edition. Boston : Pearson, c2014.
	Rosenbaum, Joshua,(2013) 1971- author.  Investment banking : valuation, leveraged buyouts, and mergers & acquisitions.  Second edition, University edition. Hoboken, N.J. : John Wiley & Sons, 2013
	Gitman, L. J. (2011) Fundamentals of investing. (11th ed.) Singapore : Pearson.
Websites	http://managementhelp.org/businessfinance
	http://www.slideshare.net/abhishek9066389/financial-management-16056415
	http://www.businessdictionary.com/definition/financial-management.html
	http://www.managementstudyguide.com/financial-management.htm
Journals	FinEx Journals
	Accounting and Finance Journals
	EBSCOHost Journals