COURSE DESCRIPTION
This course focuses on developing students understanding of how firms meet their financial objectives utilizing financial decision making such as decisions about investment, financing, liquidity and sharing earnings, with uncertainties and risk in making these decisions. The course emphasises an analytical approach to dealing with uncertainties and risk, and solving financial problems.The course also explains financial tools and techniques, which can be used to help firms maximize value by improving decisions relating to capital budgeting, capital structure, and working capital management. The course will deal with a number of related topics, including international financial management, risk management, mergers and acquisitions.
LEARNING OUTCOMES
On completion of the course students can:
i. Explain the concept of financial management and its environment
ii. Demonstrate an understanding of valuation and the cost of capitaliii. Demonstrate understanding of capital budgeting
iv. Analyze and plan financial performance
v. Explain institutional features of long term financing and the concepts of term loans and leases; merger and acquisitions, reorganization and liquidation; and international financial management
GRADUATE ATTRIBUTES EMPHASIZED
i. Analysis and problem solving – apply their abilities with academic integrity to identify and define problems and exercise informed critical judgment.
ii. Research – demonstrate independent analytical, critical, logical and creative thinking in systematically identifying and solving problems to establish or to create appropriate new and ethical solutions.
iii. Information technology – have experienced the use of archives and libraries and the application of computer software appropriate to the disciplinary area and established receptiveness to the expanding opportunities for electronic technology.
iv. Communication – have excellent communication skills, in written and oral language, and understand and use English as the language of international scholarship as well as respecting the linguistic diversity of PNG.
v. Social interaction – demonstrate the ability to work productively, both autonomously and co-operatively with due respect and value for human diversity, with a passionate commitment to truth leading to the nurturing a reflective awareness of ethical dimensions, and responsibilities to others, in work and everyday life.
CONTENT
Short term financial management for the firm:
o Current Asset Management
o Inventory Management,
o The Management of Accounts Receivable,
o Short-term financial management,
o Cash Management,
International Finance Management.
Fixed assets investment decisions:
o distortions to the free Market Optimal Investment Decision,
o inflation, taxation, risk and uncertainty in the investment decision,
o Capital Rationing,
o Takeovers and Mergers.
Management of finance for the small business.
The role of institutions in Management Finance: Development Banks Leases.
Management of finance for the corporate entity:
o Cost of Capital Theory
Dividend Policy