Epoka University

FACULTY OF ECONOMICS AND ADMINISTRATIVE SCIENCES
DEPARTMENT OF BANKING AND FINANCE
COURSE SYLLABUS

2021-2022 ACADEMIC YEAR

COURSE INFORMATION

Course Title: FINANCIAL MANAGEMENT

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 234	B	4	3	0	0	3	5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
*Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature)* and Office Hours:**	Dr. Nertil Mera nmera@epoka.edu.al , Wednesday 09:00 AM - 11:00 AM
*Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature)* and Office Hours:**	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Study program: (the study for which this course is offered)	Bachelor in Business Administration (3 years)
Classroom and Meeting Time:	E-313: 13:45 - 16:30
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:
Course Description:	BAF 234 - Financial Management course aims to introduced to concepts and tools that enable them to think critically about the financial opportunities and challenges faced by an organization. This course covers different topics such as financial statements analysis, budgeting, analyze investment options, and determine the best means of financing business endeavors. This course allows students discover ways of assessing both the return and the risk involved in a firm's financial decisions. The focus of this course is on solving practical business problems similar to those encountered in the workplace.
Course Objectives:	This course is designed to introduce students to the fundamental issues of financial management and to the quantitative techniques used to address them. The main focus of Financial Management is on valuation criteria and decisions on capital investment accounting for the cost of capital, risk and return. It helps to better understand the decisions on capital structure, dividend policies and the methods used by companies to raise capital.

BASIC CONCEPTS OF THE COURSE

1	Capital Budgeting
2	Cost of Capital
3	Leverage
4	Capital Structure
5	Risk and Return
6	Expected Returns
7	Variance and Standard Deviation
8	Scenario Analysis
9	Sensitivity Analysis

COURSE OUTLINE

Week	Topics
1	Review of Syllabus. Introduction to the course.
2	Introduction to Making Capital Investment Decisions (Project Cash Flows: A First Look; Incremental Cash Flows; Pro-forma Financial Statements and Project Cash Flows; More on Project Cash Flows; Evaluating NPV Estimates; Scenario and Other What If Analysis; Additional Considerations on Capital Budgeting) (pages 375-309)
3	Continuing Making Capital Investment Decisions (Project Cash Flows: A First Look; Incremental Cash Flows; Pro-forma Financial Statements and Project Cash Flows; More on Project Cash Flows; Evaluating NPV Estimates; Scenario and Other What If Analysis; Additional Considerations on Capital Budgeting) (pages 375-309)
4	Somme Lessons from Capital Market History (Returns; The Historical Record; Average Returns: First Lesson; The Variability of Returns: Second Lesson; More on Average Returns; Capital Market Efficiency) (pages 310-349)
5	Introduction to Risk and Return (Expected Returns and Variances; Portfolio; Announcements, Surprises and Expected Returns; Risk: Systematic and Unsystematic; Diversification and Portfolio Risk; Systematic Risk and Beta; Security Market Line; The SML and Cost of Capital (pages 350-388)
6	Continuing Risk and Return (Expected Returns and Variances; Portfolio; Announcements, Surprises and Expected Returns; Risk: Systematic and Unsystematic; Diversification and Portfolio Risk; Systematic Risk and Beta; Security Market Line; The SML and Cost of Capital (pages 350-388) + Quiz
7	Review for Midterm Exam
8	Midterm Exam
9	Cost of Capital (The Cost of Capital; The Cost of Equity; The Cost of Debt and Preferred Stock; The Waited Average Cost of Capital; Divisional and Project Cost of Capital; Company Valuation with the WACC) (pages 389-423)
10	Introduction to Leverage and Capital Structure (The Capital Structure Question; The Effect of Financial Leverage; Capital Structure and the Cost of Equity Capital; Corporate Taxes and Capital Structure; Bankruptcy Cost; Optimal Capital Structure; Observed Capital Structure; A Quick Look at Bankruptcy Process) (pages 424-456)
11	Continuing Leverage and Capital Structure (The Capital Structure Question; The Effect of Financial Leverage; Capital Structure and the Cost of Equity Capital; Corporate Taxes and Capital Structure; Bankruptcy Cost; Optimal Capital Structure; Observed Capital Structure; A Quick Look at Bankruptcy Process) (pages 424-456)
12	Dividends and Dividend Policy (Cash Dividends and Dividend Payment; Does Dividend Policy Matter; Stock Repurchases: An Alternative to Cash; What We Know and Do Not Know About Dividend; Stock Dividends and Stock Splits) (pages 457-486)
13	Raising Capital (The Financing Life Cycle of Firm: Early-Stage; Selling Securities to the Public: The Basic Procedure; Alternative Issue Matters; Underwriters; IPOs and Under-pricing; New Equity Sales and the Value of the Firm; The Cost of Issuing Securities; Issuing Long Term Debt) (pages 487-520)
14	Review Before Final Exam

Prerequisite(s):	N/A
Textbook(s):	Essentials of Corporate Finance, Stephan A. Ross, Randolph W. Westerfield and Bradford D. Jordan, 10th edition
Additional Literature:	Fundamentals of Financial Management, Eugene F. Brigham and Joel F. Houston, Concise 9th edition.
Laboratory Work:	N/A
Computer Usage:	Possible
Others:	No

COURSE LEARNING OUTCOMES

1	To understand the fundamental principles of financial management
2	To learn the generation and valuation of cash flows
3	To learn how to measure risk and return and how to use it in portfolio selection
4	To learn more on dividends, dividend policy, stock splits and reverse splits
5	To analyze complex, unstructured qualitative and quantitative problems, using appropriate tools and techniques

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Business Administration (3 years) Program
1	Identify activities, tasks, and skills in management, marketing, accounting, finance, and economics.	2
2	Apply key theories to practical problems within the global business context.	3
3	Demonstrate ethical, social, and legal responsibilities in organizations.	4
4	Develop an open minded-attitude through continuous learning and team-work.	3
5	Use technology to enable business growth and sustainability.	2
6	Analyze data to make effective decisions.	3

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	35
Quiz	1	10
Final Exam	1	50
Attendance		5
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	2	32
Mid-terms	1	13	13
Assignments			0
Final examination	1	17	17
Other	15	1	15
Total Work Load:			125
Total Work Load/25(h):			5
ECTS Credit of the Course:			5

CONCLUDING REMARKS BY THE COURSE LECTURER

Financial Management is the broadest field of finance and this course will help the students understand further the capital investment decisions and other concepts related to these decisions. Students will have to use their skills obtained from other courses such as Math for Business and Economics, Financial Accounting, Statistics and Fundamentals of Corporate Finance in order to be successful in this course. Upon successful completion of this course, students will be able to understand how financial managers try to address issues related to making capital investment decisions, decisions on capital structure and working capital management. They will be familiar with the concepts such as Risk and Return, Expected Returns, Efficient Market Hypothesis, Cost of Capital, Leverage and Capital Structure, Dividends and Dividend Policy as well as Forms of Raising Capital. They will know how to evaluate different projects by estimating cash flows, cost of capital and using multiple valuation techniques.