Course Plan –

Financial Management
1- Overview 1 6 6 – Bonds
cash flow 7- Stock
7 Valuation
2- Time value 2

8 8- Cost of
3- Capital Budgeting 3 Capital
9 Project presentation

4 – Risk and Return 4 10 – Final exam

5- Mid term

prof. Doaa salman2024

 Course Contents
Topic Topic For First Term Chapte
r
1 An Overview of Financial Management- cash flow 1
2 Time value 11
3 The Basics of Capital Budgeting 6
4 Risk and Return 8
Topic Topic For Second Term Chapte
r
1 Bonds , Bond Valuation and Interest Rates 5
2 Stocks, Stock Valuation, Stock Market 10

3 The Cost of Capital 16

4 Presentation
 Text Book & Reading
• Brigham, Euyene & Michael Ehrhardt;
Financial Management, Theory and
Practice; 12th Edition, South – Western -
Thomson

• Websites for Academic Contributions,

Financial Journals and various academic
articles collected through internet
 Course Objectives
This course is aim to enhance the conceptual
framework within the Finance Field which will
assist and support the Participant to understand
the key techniques and methods for any financial
decisions of the firm.

This course will help the Participant to acquire

knowledge in financial management in different
types of contexts in addition to he/she will be able
to understand the nature of the links of financial
decision with economy issues.
 Learning Outcomes and Methods
• By the end of this course participant will be
able to understand the basic of financial theory
and practices.
• You will address current financial management
issues faced by business decision-makers and
will build the essential analytical skills
necessary for dealing with various financial
issues.
• In addition to Participant will become familiar
with "Quantitative" issues through exercises
and problems also he/she will be encouraged
to work in "groups" as well as individual base.
 Grading System
Description Weight
Case - group 15%
Presentation ( Group Assignment) 15%
Mid Term – Exam 30%
Final Exam 40%
Total 100%
 Note
• All topics to be base on behavioural finance depending on journals and real
life cases. A group of two or three will be responsible to document one topic
in the form of an analytical research as well as prepare a brief presentation on
the same issue. Research includes, introduction, literature review, real life
case – and relate it to the course content – numerical analysis , conclusion and
references
• Proposed topics
• It can be one of the following :
• Efficient Capital Markets
• Theories analysing behavioural finance
• Merge and acquisition
• Convergence on corporate governance
• Global corporate governance
• Auction & behavioural economics
• Stock driven acquisition
• Market timing and capital structure
• Capital structure and investor behavioral
Managerial Finance

Prepared by :
Dr. Doaa Salman
 What is finance?

Finance can be defined as the art and

science of managing money.
Outline

1-Why Study Finance?

2-Managerial finance
3-Financial Management Decisions
4-Goal Of Financial Management
5-Financial Management Axioms
1-Why Study Finance?

• Economics : Manage resources

• Marketing : Budgets, marketing
research, marketing financial
products
• Management : Strategic thinking,
job performance, profitability
• Accounting : Dual accounting and
finance function, preparation of
financial statements
• Personal finance : Budgeting,
retirement planning, college
planning, D-y-D cash flow issues
Business Finance

• Some important questions that are

answered using finance
– What long-term investments should the firm
take on?
Business Finance

– How will we manage the everyday financial

activities of the firm?
Basic Areas Of Finance

1. Corporate finance = Business Finance

2. Investments
3. Financial institutions
4. International finance
Basic Areas Of Finance

Investments
• Work with financial assets such as stocks and
bonds
• Value of financial assets, risk versus return,
and asset allocation
• Job opportunities
– Stockbroker or financial advisor
– Portfolio manager
– Security analyst
Basic Areas Of Finance

Financial
Institutions
• Companies that specialize in financial
matters
– Banks – commercial and investment, credit
unions, savings and loans
– Insurance companies
– Brokerage firms
Basic Areas Of Finance

International Finance
• An area of specialization within each of the
areas discussed so far
• May allow you to work in other countries or
at least travel on a regular basis
• Need to be familiar with exchange rates and
political risk
• Need to understand the customs of other
countries; speaking a foreign language
fluently is also helpful
2-Managerial finance

• It is concerned with duties of the financial

manager in the business firm.
• The financial managers → manage the financial
affairs of any type of business, whether financial or
non financial , private or public , large or small ,
profit seeking or non profit organization .

• They perform such varied financial tasks as planning,

extending credit to customers , evaluating proposed
large expenditures and raising money to fund the
firm operations.
3-Financial Management Decisions

Capital budgeting : What long-term investments or

projects should the business take on?
3-Financial Management Decisions

• Capital structure
– How should we pay for our assets?
– Should we use debt or equity?
3-Financial Management Decisions

• Working capital
management
– How do we
manage the day-
to-day finances
of the firm?
 4-Goal Of Financial Management

• What should be the goal of a corporation?

a-Maximize profit?

b-Minimize costs?

c- Maximize market
share?
4-Goal Of Financial Management

• What should be the goal of a corporation?

d-Maximize the current value per share of the
company’s existing stock
e-Maximize the market value of the existing owners’
equity
 Goal of the Firm

1) Profit
Maximization?
this goal ignores:
a) Timing Of
Returns

b) Uncertainty Of
Returns
 Goal of the Firm

2) Shareholder Wealth Maximization?

this is the same as:

a) Maximizing Firm Value

b) Maximizing Stock Price
 Goal of the Firm

Q : Are profit maximization is the same

to wealth maximization ?
 5-Financial Management Axioms

1) Risk - return trade-off

2) Time value of money
3) Cash is king
4) Incremental cash flows count
5) It’s hard to find really profitable projects
6) Efficient capital markets
7) The agency problem
8) Taxes bias business decisions
9) All risk is not equal
10) Ethical dilemmas are everywhere in finance
 Asses your self
• What are the four basic areas of finance?

• What are the three types of financial management

decisions, and what questions are they designed to
answer?

• What is the goal of financial management?

• Managerial Finance - YouTube