1.        

Course Name   :  INTRODUCTION TO FINANCE   

2.        

Course Code    :  BUS2235          

3.        

Name(s) of Academic Staff :     Zanariah Binti Zakaria

4.        

Rationale for the inclusion of the course in the programme:       

The study of this course will provide students with a strong foundation in finance that allows them to understand and apply the concepts in the world of finance as well as to focus their attention to certain issues they can further explore. It introduces students into modern method of managing finance both on personal and firm level.  These financial theories can be applied in everyday life, financial management and investment.

5.        

Semester/Year Offered        :     Semester 2 Year 2

6.        

Total Student Learning Time (SLT)

Face to face

SL

SA

TLT

L = Lecture

T = Tutorial

P = Practical

O = Others

L

T

P

O

107.5

2.5

120

-

10

-

-

7.        

Credit Value                            :     3

8.        

Pre-requisite (if any)             :     QBA1232 - Business Mathematics

                                                   BUS2231 - Financial Accounting 2

9.        

Objective(s) of Course         

1.  Understand the goal of the firm and the basic principles in financial management.(C2)

2.  Apply the financial data to perform firm’s valuation and to forecast and plan firm’s financing. (C3)

3.  Apply the time value of money. (C3)

4.  Apply analytical skills in decision making techniques for both short term and long term financial planning of the firm. (C3)

10.    

Course Learning Outcomes

On successful completion of the module students will be able to :

1.   Explain the goal of the firm and the various legal forms of business organisation. (C2)

2.   Compute financial ratio analysis to evaluate a company’s performance and prepare pro forma financial statement and cash budget for financial planning. (C3)

3.   Demonstrate the concept of present value and future value in the time value of money. (C3)

4.   Discover the various decision making techniques for current asset and current liability management, capital budgeting and cost of capital. (C3,A3,P4)

11.    

Transferable Skills

Problem solving skills, critical thinking skills, managerial skills, lifelong learning

12.    

Teaching-learning and assessment strategy

Mixed method between teacher-centred and student-centred. Involves lectures, discussions, cooperative and collaborative learning. The module material will be delivered through power point slides presentation, module notes, case studies print out and other additional reading hand outs.

Key themes will be delivered in lectures with development and discussion in tutorial sessions where students will have the opportunity to apply their learning to a range of tasks and draw upon pertinent themes raised by the lecturer.

Students will be required to prepare themselves in advance of the lectures in order to contribute ideas and opinions during class interactively and group discussion sessions. Students are expected to share their knowledge and experience with their classmates and be proactive in class.

13.    

Synopsis

This course is designed to cater students with an initial exposure of finance which applicable for both in personal and managerial finance.  At the end of the course students are able to recognize relationship between finance and other business disciplines, as well as to be able to use synergy of those disciplines in decision making.

14.    

Mode of Delivery

Lecture, Online Distant Learning

15.    

Assessment Methods and Types

Method

Percentage

Medium

Face-to-Face

(Hours)

Formative Assessment

(50%)

Quizzes

10%

ONLINE

-

Exercises

10%

ONLINE

-

Assignment

30%

ONLINE

-

Summative (50%)

Final Examination

50%

FACE-TO-FACE

2.5

Total

100%

16.    

Mapping of the course / module to the Programme Aims

Programme Aims

Course Learning Outcomes

1

2

3

4

The Diploma in Business Administration is aimed to provide students with broad-based knowledge, technical, operational and entrepreneurial skills to perform effectively and ethically within their specific areas of Business Studies, hence inculcating the desire for lifelong learning and career development.

ü

ü

ü

ü

17.

Mapping of the course/module to the Programme Learning Outcomes

Programme Learning Outcomes

Course Learning Outcomes

1

2

3

4

1.    Outline the relevant concept and theories

ü

-

-

-

2.    Apply practical and theoretical understanding to solve business problems.

-

ü

ü

ü

3.    Show entrepreneurial skills in addressing business issues.

-

-

-

-

4.    Demonstrate teamwork, interpersonal, effective communication and social skills.

-

-

-

-

5.    Display professional and ethical business conduct

-

-

-

-

6.    Use the skills and principles of lifelong learning in their academic and career development.

-

-

-

-

18.    

Content outline of the course/module and the SLT per topic

Topic

Learning Outcomes

Face to Face

SL

TLT

L

T

P

O

TOPIC 1: INTRODUCTION TO FINANCIAL MANAGEMENT

·         Finance: A quick look

·         Business finance and financial manager

·         Forms of business organizations

·         The goals of financial management

·         Agency problem

1

-

-

-

-

6

6

TOPIC 2: FINANCIAL STATEMENT ANALYSIS

·         Understanding financial statements

·         Ratio analysis:

o    Standardized financial statements

o    Types of ratios

2

-

1

-

-

8

9

TOPIC 3: FINANCIAL PLANNING AND BUDGETING

·         Introduction

·         Sales forecast

·         Pro-forma of financial statements

·         Introduction to short term financial planning

o    Cash budgeting

2

-

2

-

-

11.5

13.5

TOPIC 4: TIME VALUE OF MONEY

·       Introduction

·       Interest

o    Compound interest

o    Simple interest

·         Present value

·         Future value

·         Annuity

o    Ordinary Annuity

o    Annuity Due

o    Perpetuity

3

-

2

-

-

20.5

22.5

TOPIC 5: CURRENT ASSET MANAGEMENT

·         Cash management

o    Objectives

o    Cash management decisions

·         Account Receivable Management

o    Objectives

o    Credit policy

·         Inventory Management

o    Objectives

o    Inventory cost

4

-

1

-

-

15

16

TOPIC 6: MANAGING CURRENT LIABILITY

·         Sources of short-term credit

o    Unsecured sources of credit

o    Secured sources of credit

·         Calculating the cost of short-term Financing

o  Evaluating the Cost of Trade Credit

4

-

1

-

-

7.5

8.5

TOPIC 7: CAPITAL BUDGETING

·         Importance of capital budgeting

·         Capital budgeting assessment techniques:

o    Payback period

o    Net Present value

o    Profitability index

·         Investment classification

4

-

2

-

-

12.5

14.5

TOPIC 8: COST OF CAPITAL

·         Cost of Debt

·         Cost of Common Stock

·         Cost of Preferred Stock

·         Weighted Average Cost of Capital

4

-

1

-

-

14

15

Total

-

10

-

-

63

105

Student Learning Time Report

SA

Face to Face

SL

TLT

Lecture

-

-

-

-

Quizzes

-

-

20

20

Exercises

-

-

20

20

Tutorial Activities

-

10

10

20

Assignment

-

-

45

45

Final Examination

2.5

-

12.5

15

Total Notional Hours

2.5

10

107.5

120

Credit Hours

3

19.

References:

Main References

1.     Ng Kean Kok, Zhang Weina, Maran Marimuthu, Sandeep Bhattacharya. (2013). Financial Management. 2^nd Edition. Oxford.

Additional References:

1.       Gitman, Madura. (2001). Introduction to Finance. 1^st Edition. Addison, Wesley, Longman

2.       Ross, Westerfield, Jordan. (2004). Essentials of Corporate Finance. 5^th Edition. McGraw Hill

3.       Gitman, L. & Joehnk, M (2011). Fundamentals of Investing. 11^th Edition. Boston: Pearson Education

4.       Rodziah, Rohani, Shelia & Mohd Nizal (2010). Financial Management For Beginners. 3^rd Edition. McGraw Hill

5.       Manual compilation (for internal circulation)

20.

Other Additional Information

Nil