TARUMANAGARA UNIVERSITYMaster of Management Program

COURSE SYLLABUSFINANCIAL MANAGEMENT

2009 Textbook: Keown, Arthur J, David F Scott, Yr, John D, Martin, and J. William Petty, 2005, Financial Management. 10th Edition, Prentice Hall, [KFM]

Other references:1. Madura, Jeff, 2003. International Financial Management, 7th Edition,

Thomson South-Western. 2. Ross, Stephen. A., Randolph W. Westerfield and Jeffrey Jaffe, 2005. Corporate Finance. 7th Edition, McGraw Hill. [RCF]

Instructors: 1. Imo Gandakusuma, MBA

COURSE DESCRIPTION AND OBJECTIVE

Financial Management deals with the maintenance and creation of economic value or wealth. It focuses on decision making with a special attention on creating wealth. In general, there are three groups of financial decision: investment, financing, and dividend decisions. Investment decisions involve allocation of scarce resources across competing uses. Financing decisions involve raising funds to finance the investment projects. Dividend decisions involve reinvesting cash back to the business or returning cash to shareholders.

The objective of this course is to give the students analytical and problem solving skills in finance from the point of view of management and investors. In this setting, some basic finance tools are important. The tools are: financial statement analysis, mathematics of finance (present value, future value, annuity, perpetuity, etc), risk-return models, and valuation models. In addition, potential conflict of interests among the actors (such as managers vs shareholders and shareholders vs bondholders) are also recognized.

To facilitate active learning, this course will use case studies, discussion, event analysis, and some projects using real data. Students are also expected to come up with a group presentations to be presented in the class.

COURSE REQUIREMENTS

1. Class attendance is mandatory. Students must come to class well-prepared. Readings and case assignments will be distributed before the scheduled session and must be studied thoroughly, as class participation will be a crucial part of the grading process. It will also help students in understanding the concepts given during the lectures.

2. The cases and group assignments will be informed prior to the scheduled session. For each case, each group has to prepare a powerpoint presentation materials which includes a summary and a short analysis of the case, and recommendations.

3. The grading policy includes:

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Assignment (Quiz & Class Participation, Case write ups & presentation) 20%Midterm Examination 40%Final Examination 40%

Session Topics1 . An Introduction to Financial Management

Readings: KFM Ch.1 ; RCF Ch.1 Instructor: Imo Gandakusuma, MBA

2 . The Financial Markets and Interest RatesReadings: KFM Ch.14

Web site: www.bi.go.id (see history of SBI rates) Instructor: Imo Gandakusuma, MBA 3 . Evaluating a Firm Financial Performance Readings: KFM Ch.3

RCF Ch. 2 Instructor: Imo Gandakusuma, MBA 4 . Evaluating a Firm Financial Performance Readings: KFM Ch.3

RCF Ch. 2 Case / Project: Analyzing financial health of publicly listed companies such

as, AMFG, ARNA, IKAI, MLIA, TOTO, ALKA, INAI, JPRS, LION, PICO, DYNA, AKPI, TRST, CPIN, JPFA, SIPD, INKP, FASW, TKIM, GJTL, AUTO, INDS, SMSM, ARGO, ERTX, POLY, SCCO,ADES, AQUA, GGRM, TSPC,EPMT, TGKA, HERO, RIMO, MPPA. Web sites: www.jsx.co.id , www.indoexchange.com and www.e-bursa.com

(see companies annual report)Instructor: Imo Gandakusuma, MBA

5 . The Time Value of Money

Readings: KFM Ch 5 ; RCF Ch. 4

Discussion: Your MM educational Investment Instructor: Imo Gandakusuma, MBA 6 . Presentations of financial health of publicly listed companies

Each group has to prepare a powerpoint presentation materials Class DiscussionsReadings: companies annual report

Instructor: Imo Gandakusuma, MBA

MID TERM EXAMINATION

7 . Valuation and Characteristics of Bonds Readings: KFM Ch 7 ;

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RCF Ch. 5 Instructor: : Imo Gandakusuma, MBA

8. Valuation and Characteristics of Stocks Readings: KFM Ch 8 ; RCF Ch. 5

Instructor: : Imo Gandakusuma, MBA

9 . Cost of CapitalReadings: KFM Ch.12

RCF Ch. 12Discussion : Cost of Capital of Listed Companies in JSX

Instructor: : Imo Gandakusuma, MBA

10 . Capital Budgeting Decision Criteria Readings: KFM Ch.9 ; RCF Ch. 6 Instructor: : Imo Gandakusuma, MBA

11 . Cash Flow and Other Topics in Capital Budgeting Readings: KFM Ch 10 ;

RCF Ch. 7 Instructor: : Imo Gandakusuma, MBA

12 . Dividend Policy Readings: KFM Ch 14

Instructor: : Imo Gandakusuma, MBA

FINAL EXAMINATION

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