EF5040 Financial Management

Course Aims & Objectives:
This course aims to enable students both to understand the theory and practice of capital budgeting and financing decisions and to apply their knowledge to financial decisions. Upon completing the course, students should be able to make rational capital budgeting by applying the principles of time-value of money and the risk-return relationship; describe the different sources and types of corporate financing; understand how capital structure affects cost of capital and thus financing decisions. This includes the understanding of how dividend distribution affects the cost of capital; and understand the basic problems of corporate governance arising from agency problems. This would include how these problems affect financing/capital structure decisions.

Units: 2

Level: P5

Medium of Instruction: English

Keyword Syllabus:
Basic concepts in corporate finance. Capital budgeting decisions under certainty. Capital budgeting decisions under uncertainty. Sources of financing. Cost of capital. Capital structure decisions. Dividend policies. Overview of working capital management. Management of cash and marketable securities.

Teaching Pattern:
Duration of course: 1 Semester
Current mix of lecture/tutorial/laboratory, other: 2 hrs. seminar per week

Assessment Pattern:
Examination duration: 2 hours
Percentage distribution of marks for coursework, examination, other: 50% CW and 50% exam
Grading pattern: Standard (A+AA-...F)

Pre-requisite(s): Nil

Pre-cursor(s): Nil

Equivalent Course(s):
From the old curriculum: EF8040 Financial Management
FB5040