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FM-II Course Outline

This 3-credit course is titled "Financial Management II" and is a prerequisite for students pursuing a BA in Accounting and Finance. The course objectives are to familiarize students with investment, financing, and dividend decisions central to finance. Topics include working capital management, cash and liquidity management, receivables management, inventory management, and dividend policy and theory. The course will be assessed through tests, cases, assignments, and a final exam. Teaching methods include lectures, discussions, problem-solving, and student presentations of local case analyses.

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264 views

FM-II Course Outline

This 3-credit course is titled "Financial Management II" and is a prerequisite for students pursuing a BA in Accounting and Finance. The course objectives are to familiarize students with investment, financing, and dividend decisions central to finance. Topics include working capital management, cash and liquidity management, receivables management, inventory management, and dividend policy and theory. The course will be assessed through tests, cases, assignments, and a final exam. Teaching methods include lectures, discussions, problem-solving, and student presentations of local case analyses.

Uploaded by

samuel debebe
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Course Code AcFn 332

Course Title Financial Management II


Degree Program BA Degree in Accounting and Finance
Credit Hours 3
Prerequisites AcFn 331
Instructors Ephrem T.
Status of the Major
Course
Course Objectives The basic objective of this course is to familiarize students with the basics of investment,
& Competences to financing and dividend decisions that are the central thematic areas of finance profession.
be Acquired
Course Description This course is a continuation of Financial Management I. It emphasizes on building and
applying financial models, following the principle of financial management, for planning and
decision making purposes. It explains with the help of the language of financial accounting,
how top management conducts systematic analysis, builds innovative plans, understands and
manages risk, and creates more profit, cash and value for the organization. Topics included
are: Introduction to a modeling approach, financial accounting as the foundation for financial
models, cash flow models for planning, the cost of capital, capital budgeting and strategy, and
investment decisions and portfolio theory.
WEEKS Course Contents
3 WEEKS 1. Principles of Working capital management
{1st 2nd& 3rd } 1.1. The concept of working capital
1.2. Operating and cash conversion cycle
1.3. Permanent and Variable Working Capital
1.4. Determinants of working capital management
1.4.1. Financing Current Assets
3 WEEKS 2. Cash and Liquidity Management
{4th 6th& 7th } 2.1. Reasons for Holding Cash
2.2. Understanding Float
2.3. Cash Collection and Concentration
2.4. Managing Cash Disbursement
2.5. Investing Ideal Cash
2.6. Determining the target cash balance
3 WEEKS 3. Receivable Management
{8th 9th& 10th } 3.1. Credit and receivables
3.2. Terms of sale
3.3. Analyzing credit policy
3.4. Credit Analysis
3.5. Collection policy

3 WEEKS 4. Inventory Management


{11th 12th& 13th } 4.1. Introduction
4.2. Meaning & Nature of inventory
4.3. Benefits & costs of Holding Inventory
4.4. Inventory management techniques
3 WEEKS 5. Dividend Policy and Theory
{14th 15th& 16th } 5.1. Dividends- classification
5.2. Factors influencing dividend payments
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5.3. Establishing dividend policy
5.3.1. Residual Dividend approach
5.3.2. Dividend stability
5.4. A Compromise
Text and reference Text Book:
books  Brigham, Eugene F. and Michael C. Ehrhardt, Financial Management: Theory and
Practice (13th edition), South-Western, 2011.
Reference Books
 Ross, Westerfield and Jordan, Essentials of Corporate Finance, sixth edition, 2008,
McGraw-Hill Irwin.
 Brigham, Eugene F. and Michael C. Ehrhardt, Financial Management: Theory and
Practice (13th edition), South-Western, 2011.
 Pandey I.M. Financial Management. 9th Edition
Assessment/Evalu Test Test Test Cas Assignme Fina Total
ation 1 2 3 es nt 1 l
10% 10% 10% 10 20% 40% 100%
%
N.B: Assessment or Evaluation Scheme might be tentative!

Teaching & The teaching and learning methodology include lecturing, discussions, problem solving,
Learning and analysis. Take-home assignment will be given at the end of each chapter for submission
Methods/strategy within a week. Solution to the assignments will be given once assignments are collected.
Cases with local relevance will also be given for each chapter for group of students to
present in a class room. The full and active participation of students is highly encouraged.

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