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Idea Transcript
June 2015
The Hong Kong Polytechnic University Hong Kong Community College Subject Description Form Subject Code
CCN2113
Subject Title
Financial Management
Level
2
Credit Value
3
Medium of Instruction
English
Pre-requisite / Co-requisite/ Exclusion
Nil
Objectives
This subject is structured around the most important financial decisions made by a firm in an integrated business environment. Students are expected to develop knowledge of how firms make capital budgeting and financial decisions, and learn time value of money and valuations of securities. This subject enables students to learn how the concepts and theories of financial management are applied in the real world and generate lasting impacts on firms. It will also enable students to execute strong analytical skills and critical thinking.
Intended Learning Outcomes
Upon completion of the subject, students will be able to: (a) describe the functions of financial management and the role of the finance managers, work with financial statements to identify cash flow and evaluate ratio analysis of the firm. (b) appraise the importance of the concept of the time value of money. (c) perform basic valuation of stocks and bonds. (d) assess the risk and return associated with a financial asset and examine the factors affecting cost of capital and dividend policy. (e) apply investment appraisal techniques in a capital budgeting context and evaluate the strengths and limitations of those techniques.
Time value of money Present value; Future value; Annuity; Perpetuity.
Valuation of Securities Stocks and bonds.
1
June 2015
Basic Portfolio Theory Risk and return; Portfolio; Beta; Capital Assets Pricing Model.
Cost of Capital Definition and component of cost of capital; Introduction to weighted average cost of capital.
Sources of Finance Internally generated funds; Capital markets; Dividend policy.
Capital Investment Techniques Payback; Accounting rate of returns; Internal rate of returns; Net present value; Comparisons of discounted cash flows techniques; Projects with different lives and investment outlay; Capital rationing; Capital budgeting; Sensitivity analysis and scenario analysis.
Teaching/Learning Methodology
Lectures will focus on the introduction and explanation of theoretical materials, with specific reference to current financial issues where appropriate. Occasional group discussions will be conducted to stimulate students’ interests or their awareness of practical implications of some concepts. Tutorials will give students an opportunity to apply the theories learnt in lectures so that they can deepen their understanding through an interactive approach. Activities in tutorials will include student presentations of tutorial questions and discussions of problem sets.
Assessment Methods in Alignment with Intended Learning Outcomes
A variety of assessment tools will be used to develop and assess students’ achievement of the subject intended learning outcomes. Specific assessment methods/tasks
% weighting
Intended subject learning outcomes to be assessed a
b
c
Continuous Assessment*
40
Test
20
Assignment 1
8
Assignment 2
8
Tutorial Exercise & Activities
4
Final Examination
60
Total
100
d
e
*Continuous assessment items and/or weighting may be adjusted by the subject team subject to the approval of the College Programme Committee.
To pass this subject, students are required to obtain Grade D or above in both the Continuous Assessment and Final Examination.
2
June 2015 Student Study Effort Expected
Class contact
Hours
Lecture
26
Tutorial
13
Other student study effort
Reading List and References
Self-study
52
Continuous Assessment
39
Total student study effort
130
Recommended Textbook Ross, Westerfield, Jordon, Wong, & Wong (2014). Essentials of Corporate Finance. (8th ed.) (Global ed.), McGraw Hill. References Ross, Westerfield, Jaffe, Lim, Tan, & Wong (2015). Corporate Finance. Asia (Global ed.), McGraw Hill. Berk, DeMarzo, & Harford (2015). Fundamentals of Corporate Finance. (3rd ed.), Pearson Education Ltd. Brigham & Houston (2014). Essentials of Financial Management. (3rd ed.), Cengage Learning. ACCA Practice & Revision Kit Paper F9 Financial Management. (2010). London BPP Learning Media Ltd. Ho, Pauline H.Y., & Yau, Joseph S.W. (2014). HKIAAT Professional Bridging Examination Study Text Paper II - Management Accounting and Finance. Pearson Education Ltd.