KING FAHD UNIVERSITY OF PETROLEUM & MINERALS
College of Industrial Management
Department of Finance & Economics
Fin 301: Financial Management I: Spring 2nd Semester 032- 2004
U-T 10:00 - 11:15 pm * 24 - 153
Dr. Yakubu Al-Haji Umar
Office: Bldg 24-241 Office Hours: U-T 12:30 -1:30 pm
Or By Appointment Office Phone: 860 - 2519
e-mail: drumar@kfupm.edu.sa

Course Syllabus - Contract of Rules and Regulations

Required Textbook: Moyer, McGuigan & Kretlow, Contemporary Financial Management, 9th Ed. 2003.You should read each chapter before it is discussed in class. Fundamentals of Financial Management by Brigham & Houston 9th Ed.; Principles of Corporate Finance by Brealey & Myers, 7th Ed. and are highly recommended for additional readings. As with the text book, the appropriate chapter should be read before it is discussed in class. You should also read articles in the major periodicals, such as the Wall Street Journal, Business Week, Fortune, Forbes,  Dunn's, and Internet describing financial managers' involvement in some important challenging tasks and for current developments in the financial markets.

Calculator: Financial Calculator (FC) is required. You must bring a financial calculator that does TVM, PV, FV, NPV, IRR, and PMT problems for each class meeting.

Course Description: An introduction to important foundation concepts and tools of corporate finance. The course covers the determinants of the return on equity, the valuation of assets and common stocks, cash flow estimation principles, capital budgeting decision models, business and financial risks as well as the weighted cost of capital. Other topics identified throughout the course include International issues to reinforce the global nature of financial decision making; Ethical issues to present some of the ethical dilemmas facing  financial managers; Entrepreneurial issues to emphasize unique finance-related problems and concerns of entrepreneurs and numerous references throughout the course that can be found on the World Wide Web. Pre-Requisites: Acct 202

Course Objectives:
< Develop an understanding of the modern corporate finance theory and practice so that the student will have the conceptual foundations for making intelligent financial decisions.

< Introduce students to a variety of real-world problems faced by financial managers to advance their understanding of financial management concepts and theories.

< Encourage students to use computer and other technological innovations to identify and analyze problems, consider alternatives, and make recommendations for feasible financial decisions.

AACSB Perspectives: The AACSB expects business curricula to incorporate various issues critical to contemporary organizations. Ethical, global and technological issues as well as the influence of legal, regulatory and environmental issues are some of the perspectives addressed in FIN 301 course. Ethical issues are integral part of the assigned reading at the end of each chapter materials on business ethics. Global issues in assigned chapters are integrated with other materials throughout the course.

Computer Usage: Course assignments and term projects requires use of Computer, finance internet web sites and Excel spreadsheet. A specific problem at the end of each chapter refer students to a web site where they must use the internet to locate, solve, discus and present the assigned problem.

Communication Skills: Student oral communication skills are developed through class participation, discussions, reading International and local business publications and presentations. Written communication skills are enhanced via term project and assignments.

Attendance & Participation: You must attend all the scheduled classes. Class attendance is required. More than three un-excused absences automatically results in lower grade or DN! This will be strictly enforced. Students must be in class on time. Being late at the start of class and leaving class without excuse automatically is considered as being absent.
Exams and Quizzes: There will be two major 75 minutes exam and a 2-hour final for this course. There will be several unannounced quizzes on the assigned material during the semester. Absolutely, there will be no make-up exam. Absence from any exam will result to zero except for serious emergency. There will be no exception. The University’s policy is that any student found guilty of cheating will be kicked out of the school. I intend to keep strict rule on this policy. One strike and you are out!

Grade Distribution:

1st Major Exam 30%;   2nd Major Exam 30%   and  Final Exam 35%
Home Work, Quizzes, Participation & Attendance 5%
Total Grade 100%

Tentative Class Schedule

Feb 15 (U) Chapter 1: The Role and Objective of Fin. Management & Project Assignments. Answer all the questions on page 29-30.

Feb 17 (T) Chapter 1: The Role and Objective of Fin. Management & Project Assignments. Answer all the questions on page 29-30.

Feb 22 (U) Chapter 1: The Role and Objective of Fin. Management & Project Assignments. Answer all the questions on page 29-30.

Feb 24 (T) Chapter 2: The Domestic & International Financial Marketplace. Prob.:1, 3, 5, 6, 8 & ST

Feb 29 (U) Chapter 2: The Domestic & International Financial Marketplace. Prob.:1, 3, 5, 6, 8 & ST

Mar 02 (T) Chapter 3: Evaluation of Financial Performance. Prob.:1, 6, 18, 24 & 26 with internet).

Mar 07 (U) Chapter 3: Evaluation of Financial Performance. Prob.:1, 6, 18, 24 & 26 with internet).

Mar 09 (T) Chapter 3: Evaluation of Financial Performance. Prob.:1, 6, 18, 24 & 26 with internet).

Mar 14 (U) Chapter 4: The Time Value of Money. Prob.:1, 2, 3, 5, 7, 19, 41 with excel & 46 with internet.

Mar 16 (T) Chapter 4: The Time Value of Money. Prob.:1, 2, 3, 5, 7, 19, 41 with excel & 46 with internet.

Mar 21 (U) First Major Exam: Sunday March 21, 2004

 

Mar 23 (T) Chapter 4: The Time Value of Money. Prob.:1, 2, 3, 5, 6, 14, 41 with excel & 46 with internet.

Mar 28 (U) Chapter 5: Analysis of Risk and Return. Prob.:1, 3, 7, 12, 21, & 27 with Internet.

Mar 30 (T) Chapter 5: Analysis of Risk and Return. Prob.:1, 3, 7, 12, 21, & 27 with Internet.

Apr 04 (U) Chapter 5: Analysis of Risk and Return. Prob.:1, 3, 7, 12, 21, & 28 with Internet.

Apr 06 (T) Chapter 8: Capital Budgeting & Cash Flow Analysis. Prob.:3, 5, 6, 13 & 16 with Excel.

Apr 11 (U) Chapter 8: Capital Budgeting & Cash Flow Analysis. Prob.:3, 5, 6, 13 & 16 with Excel.

Apr 13 (T) Chapter 8: Capital Budgeting & Cash Flow Analysis. Prob.:3, 5, 6, 13 & 16 with Excel.

Apr 18 (U) Chapter 9: Capital Budgeting: Decision Criteria & Real option Considerations. Prob.:2, 3,

                         9 with excel, 16 & 25 with internet and Appendix 9A Mutually Exclusive Investments.

Apr 20 (T) Chapter 9: Capital Budgeting: Decision Criteria & Real option Considerations. Prob.:2, 3,

                         9 with excel, 16 & 25 with internet and Appendix 9A Mutually Exclusive Investments.

Apr 25 (U) 2nd Major Exam: Sunday April 24, 2004

 

Apr 27 (M) Chapter 9: Capital Budgeting: Decision Criteria & Real option Considerations. Prob.:2, 3,

                         9 with excel,16 & 25 with internet and Appendix 9A Mutually Exclusive Investments.

May 01 (S) Chapter 15: Financial Forecasting and Working Capital Policy. Prob.:1, 3, 18 & 21 with Internet.

May 03 (M) Chapter 15: Financial Forecasting and Working Capital Policy. Prob.:1, 3, 18 & 21with Internet.

May 08 (S) Chapter 15: Financial Forecasting and Working Capital Policy. Prob.:1, 3, 18 & 21 with Internet.
May 10 (M) Chapter 16: The Management of Cash and Marketable Securities. Prob.:1, 5 & 13 with Internet.
May 15 (S) Chapter 16: The Management of Cash and Marketable Securities. Prob.:1, 5 & 13 with Internet.

May 17 (M) Chapter 16: The Management of Cash and Marketable Securities. Prob.:1, 5 & 13 with Internet.

May 22 (S) Chapter 17: Management of Accounts Receivable and Prob.: 1, 18, 19 & 23 with  internet.

May 24 (M) Chapter 17: Management of A/R and Prob.: 1, 18, 19 & 23 with internet


May 29-Jun 8 Final Exam : Date as set by the registrar

NOTE:
The instructor reserves the right to alter the assignment schedule, the weights associated with exams and other assignments. Any changes made will be announced in class and it shall be the responsibility of the student to acquire this information in case of absence from class.