COURSE SYLLABUS

Course title: PRINCIPLES OF FINANCE

Course code: TCH302E
Department: VJCC Academic Affairs Department
Credit hours: 3 credits
Prerequite(s): Principles of Accounting, Macroeconomics

1. INSTRUCTOR(s) INFORMATION
No. Instructors’ name University/ Email/Mobile Office
Organisation
1. Nguyen Thi Hien [email protected] 2nd Floor, VJCC
2. Võ Thị Phương Thảo FTU/VJCC M: 093.881.5266 10AM-12AM
(TA) [email protected] Thusday
0949340123

2. COURSE DESCRIPTION

In this course, it provides you an understanding about the world of finance. Accordingly, the
concept of finance and its function and scope are demonstrated. Some of the topics covered
include financial markets and institutions, time value of money, financial analysis and
planning, working capital management, capital budgeting, and long-term financing.
Although this course emphasizes corporate decision making, the skills obtained will also aid
the student in personal finance and small business decision making. Risk and reward
analysis is central to most of what we do in this course. The student should strive to both
understand the concepts and to solve the problems presented in the course.

Assigned end-of-chapter homework problems are listed in this syllabus. You are encouraged
to do additional problems to facilitate your learning of this material. You will need to work
the end-of-chapter problems if you expect to do well on the exams and quizzes. You should
also do the review questions at the end of each chapter. The “interactive modules” in the
textbook refer you to the place on the book’s website with that name. These will be the basis
of some of our class discussions. Many of these involve the use of Excel spreadsheets you
can use to expand your understanding of the topic. There are also links to current events
relating to course topics that we will access in class so as to generate additional class
discussion items.

3. COURSE LEARNING OBJECTIVES

Upon successful completion of this course you should be competent in the following
topic areas:
 Financial System: Be able to describe its structure, function, and operation.

1
  Financial Statement Analysis: Draw inferences about a firm’s performance by
examining its financial statements. Be able to compute the cash flows of the firm,
since these are not directly reported in the financial statements.
 Time Value of Money: Be able to compute present and future values of single and
multiple cash flows, know the differences in how interest rates are computed and
quoted, and be able to amortize loans.
 Risk and Return: Know how to measure risk, how to diversify risk by forming
portfolios, and how returns from investments are related to risk.
 Valuation: Know the different features of two major types of financial securities:
fixed income securities (bonds) and equity securities (stocks). You should also be
able to value these securities.
 Capital Budgeting and Cost of Capital: Be able to compute cash flows from
investments and know how to make financially sound investment decisions with
assets.
 Working Capital: Explain ways in which a firm can effectively manage its working
capital.
 Financial Management: use the tools above to identify and propose sound financial
management decisions.
4. READINGS MATERIALS
1. Required Text: Financial Management: Principles and Practice, by Timothy J.
Gallagher, seventh edition (2016), ISBN 978-0-9960954-6-4.
2. Fredric S. Mishkin, The economics of Money, Banking and Financial Markets, 9th (13rd
if possible) edition
3. Students are expected to read News, Journals and Magazines of banking and finance3.
4. A regular (nonfinancial) calculator for working problems in class or on exams.
5. Other materials, such as outside readings or additional PPT slides, may be added
throughout the term; these will be announced in class. Such materials will be distributed
electronically; you will generally be required to print these materials in advance and
bring them to class for discussion.

5. COURSE CONTENT AND SCHEDULE

Students should read the assigned chapter and study the end-of-chapter questions and
problems before the chapter is discussed in class. Please bring your textbook and discussion
materials (such as PPT slides or assigned readings), and a calculator to class each day.
You should read chapters 1 before the first day of class; the pace after that will be
announced as we go.

Class Topics
2
 Class 1 Chapter 1. FINANCE AND THE FIRM
Class 2 Chapter 2. FINANCIAL MARKETS AND INTEREST RATES/ Chapter
8. TIME VALUE OF MONEY
Class 3.4 Chapter 2,8 Cont’d further readings (chapter 4,5, 6 F.S.Mishkin (9th
Edition))
Class 5 Chapter 3. Financial Institutions
Class 6 Chapter 3. Cont’d
Quick Test No 1
Class 7 Chapter 4. Reviewing of Accounting

Class 8 Chapter 5. Analysis of Financial Statements

Class 9 Chapter 6. Forecasting for financial planning
Class 10 Chapter 7. Risk and return
Class 11 Quick Test No 2 (Middle Term Exam)
Class 12 Chapter 9. The cost of capital

Class 13 Chapter 10 Capital budgeting decision methods

Class 14 Chapter 11. Estimating Incremental cash flows
Class 15 Chapter 13. Capital structure basis
Class 16 Chapter 17, 18,19 Working capital management

Each chapter includes three types of exercises: Self-Test, end-of-chapter Review

Questions, and end-of-chapter Problems. Assigned questions and problems are identified
below for each chapter. These assignments are not to be handed in, but are for purposes of
class discussion and self-study and to help you prepare for exams. Mastery of assigned
problems will be critical for successful performance on exams. Selected questions will be
discussed in class.
Although solutions to all problems will be made available at the beginning of the term,
it is highly recommended that you attempt the problems first, before looking at the
solutions, and then use the solutions to check your answers and to measure your
understanding of the material. This will maximize your learning.
ASSIGNMENTS:
1) Assigned Questions and Problems: you are requested to accomplish all the
exercises and problems accordingly and submit to the lecturer before the day the next
chapter/content starts. Sending email to: [email protected] and [email protected]
with the Email Subject CODE: TCH302E. CTTT 60.
a) Fredric S. Mishkin, The economics of Money, Banking and Financial Markets,
ninth edition
Chapter 2: Exercise and Problems: 1,3,4,5,7,8,10,11
Chapter 3: Exercise and Problems: 7,11,14
Chapter 4: Exercise and Problems:1,2,3,5,7,8,9,11
Chapter 5: Exercise and Problems:1,2,3,5,6,7
3
 Chapter 6: Exercise and Problems: 6,7,8,11
b) Timothy J. Gallagher, Financial Management: Principles and Practice, seventh
edition (2016), ISBN 978-0-9960954-6-4.
Chapter Self-Test Review Questions Problems
Ch 1-3 (all) (all) (all)
Chapter 4 (all) (all) # 1-2, 5-6, 10, 13, 18, 24
Chapter 5 (all) (all) # 1-11, 13-14, 18-29
Chapter 6 (all) (all) # 2-5, 7
Chapter 7 (all) (all) # 1-4, 6-17
Chapter 8 (all) (all) #1-3, 5, 7-9, 11, 13, 15, 17, 19, 22-23,
26, 29, 31, 35-36, 41, 47, 50-52
Chapter 9 #1-4 only (all) #3, 5, 7, 11-12, 14, 18
Chapter 10 #1-4 only (all) #2-4, 7-9, 15*
Chapter 11 #1-4 only #1-8 only #1-2, 4-5, 10-11
Chapter 12 (all) (all) #2-4, 10, 11-13, 18-20
Chapter 17 (all) (all) #1-4, 7-10
Chapter 20 (all) (all) #1-16
* Regarding problem #10-15, note that for exam purposes, you won’t need to actually
construct – but you will need to know how to interpret – the NPV Profile.
2) Group assignment: TO BE ANNOUNCED AFTER 3 WEEKS OF CLASSES

6. COURSE ASSESSMENT

The course assessment is based on the following course requirements: in-class quick test,
assigned questions and problems, quizzes and attendance/participation, and is computed as
follows:

Middle test 30 points

Final Exam 60 points

Assigned questions and problems, 10 points

quizzes, attendance/participation

Maximum Total 100 points

Any unexcused absence from an exam will result in a grade of zero for that exam.

DEAN OF FACULTY HEAD OF DEPARTMENT