财务管理基础英文大纲

Foundation of Financial Management

Module syllabus

Teacher Name: Zhanwei Liu

School Name: Xuchang University

1. Unit description

Financial management is part of the decision-making, planning and control subsystems of an enterprise. It incorporates the treasury function, which includes the management of working capital and the implications arising from exchange rate mechanisms due to international competition, evaluation, selection, management and control of new capital investment opportunities, raising and management of the long-term financing of an entity.

The management of risk in the different aspects of the financial activities undertaken is also addressed. Studying this course should provide you with an overview of the problems facing a financial manager in the commercial world. It will introduce you to the concepts and theories of corporate finance that underlie the techniques that are offered as aids for the understanding, evaluation and resolution of financial ma nagers’ problems. This subject guide is written to supplement the Essential and Further reading listed for this course, not to replace them. It makes no assumptions about prior knowledge other than that you have completed Principles of accounting.

The aim of the course is to provide an understanding and awareness of both the underlying concepts and practical application of the basics of financial management. The subject guide and the readings should also help to build in your mind the ability to make critical judgments of the strengths and weaknesses of the theories, just as it should be helping to build a critical appreciation of the uses and limitations of the same theories and their possible applications.

On successful completion of the module, learners will be able to:

●describe how different financial markets function and estimate the

value of different financial instruments (including stocks

and bonds)

●make capital budgeting decisions under both certainty and uncertainty

●apply the capital assets pricing model in practical scenarios

●discuss the capital structure theory and dividend policy of a firm

●estimate the value of derivatives and advise management how to use

derivatives in risk management and capital budgeting

●describe and assess how companies manage working capital and

short- term financing

2. Pre-requisite units and assumed knowledge

Accounting, Economics

3. Learning aims and outcomes

Learning Outcome 1

Explain the method of financial analysis and planning

ASSESSMENT CRITERIA:

a. Explain the goals and objectives of financial management

b. Demonstrate a reasonable ability to prepare the three basic financial

statements

c. Discuss the method of financial analysis

d. Explain the operating leverage, financial leverag

e. and combined

leverage

Learning Outcome 2

Explain the manager how to manage working capital

ASSESSMENT CRITERIA:

a. Explain the context of risk-return analysis

b. Explain the financial manager how to choose between liquid,

low-return assets and more profitable, less liquid assets Learning Outcome 3

Explain the process of the capital budgeting

ASSESSMENT CRITERIA:

a. Discuss the time value of money

b. Explain the valuation of bonds and stocks

c. Explain the cost of capital and capital structure

d. Explain the capital budgeting decision and risk-return analysis

Learning Outcome 4

Explain the long-term financing in the capital markets

ASSESSMENT CRITERIA:

a. Explain the long-term debt and lease financing

b. Explain the common stock and preferred stock financing

c. Explain the dividend policy and retained earnings

d. Explain the warrants and convertibles covered, as well as the more

conventional methods of financing

4. Weighting of final grade

Grades will be assigned on the basis of the following percentages:

5. Grading

A 100-95 A- 94-90 B+ 89-87

B 86-83 B- 82-80 C+ 79-77

C 76-73 C- 72-70 D+ 69-67

D 66-63 D- 62-60 F 59 or lower

6. Policies

Attendance Policy

Attendance in class is a very important part of your learning experience. As such, failure to attend class will reduce your grade, and may be grounds for failure in the course. If you are late to class, your attendance score may also be affected. In the event of unavoidable absences, such as serious illness, or deaths in the family, students may be requested to provide documentary evidence of the reason for their absence to their academic coordinator. You should not give these to your instructor. Students are solely responsible for the makeup of any missed classes, and for obtaining any class materials or assignments that they may miss. You are expected to come to class prepared to actively participate in class discussions.

Participation Policy

Students should participate in their chosen classes actively and effectively. The Participation Grade is related to the Attendance Grade. Students’ final attendance grade is the maximum of their participation grade.

Participation grade will be based on a variety of factors including, but not limited to taking part in class discussions and activities, completing

assignments, being able to answer questions correctly, obeying class rules, and being prepared for class, frequent visiting your instructors and chatting in English during their office hours is highly recommended.

Policy on Assignments and Quizzes

Students should finish their assignments completely and punctually. Assignment should be submitted on the date appointed by the instructor. If a student cannot hand in the assignment on time, the reasonable excuse will be needed. Late assignments will receive a maximum grade of 80. An assignment that is late for 3 days will be corrected but receive 0.

You are recommended print all your assignment in the uniform format with the heading o f Student’s Pledge of no cheating. Written assignment or printed ones without the uniform heading of pledge will receive a maximum grade of 80.

It is mandatory to have weekend assignment every week. Any weekend assignment should be submitted on first class of next week. It is mandatory to have holiday assignment on the public holidays. Any holiday assignment should be submitted on the first day on returning to school. Students are required to do a multitude of presentations during the course.

Plagiarism and Copying

Plagiarism is using someone else’s work or ideas as your own without giving them proper credit or copying someone else’s work a nd presenting it as your own.There has a very strict plagiarism policy and will not tolerate academic cheating in any form. Penalties can be as severe as expulsion from the university. At the very least, no one will receive any credit for assignments that appear to be copied from another student. To avoid plagiarism, do your own work, or cite the work of others appropriately. You can refer to the course catalogue for more information about plagiarism policy.

If you cheat on the homework, I can guarantee you that you will fail the class. Every exam I give has several problems that require you to submit journal entries, create financial statements in proper form, or to create schedules

showing certain details that you have to calculate. If you do not practice doing these things by doing the homework yourself and correcting your own work in class, you will lose a significant number of points on the exams.

Classroom Policies

●No eating, cellular phones, electronic dictionaries, smoking, chatting or

drowsing in class.

●Please speak in English rather than Chinese in class.

●Students are not allowed to attend class without textbooks.

●Stand up when answering questions.

●Respect classmates’ ideas, opinions, and questions of your classmates.

●You are welcome to visit the instructor’s office in his/her office hours.

●Take good care of the laboratory facilities. Do not splash water on the

desktop.

●When each class is over, hang the earphone on the hanger. Put the trash

into the trash-bin.

●All your classroom involvement, performance and after-class

communications with instructor will affect your participation score.

7. Texts and other recourses

The primary textbook:

Stanley B.Block. Foundation of financial management, 14th ed.

The supplementary textbook:

Richard A. Barealey et al(2011) fundamentals of corporate finance(6th ed.).

Renmin university of China press

WEB SITES:

Teaching methods

Discussions and Homework

8. Session Plan