Introduction to Finance

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    WELCOME_OBA3105_INTRODUCTION TO FINANCE_BBAIB_ODL
    
    This is Introduction to Finance OBA 3105, a core subject in Bachelor of Business Administration in International Business (BBAIB)_ODL
    
    DESCRIPTION OF THE COURSE
    
    This module is designed to provide students with a strong foundation in finance that allows them to understand and apply the concepts in the world of finance as well as to focus their attention to certain issues they can further explore. which applicable for both in personal and managerial finance. At the end of the course, students can recognize relationship between finance and other business disciplines, as well as to be able to use synergy of those disciplines in decision making.
    
    AIM OF THE COURSE
    

    The overall aim of the module is to give students an exposure to the basic business finance theory both quantitative and qualitative with some simple applications.

    • Specific topics covered will include time value of money, the role of the financial markets in company financing, the nature and role of financial instruments, sources of financial information, evaluation of proposed capital expenditure, and cost of capital and the returns to providers of finance.
    • This is an introduction to the fundamental concepts of business finance. The students will be exposed to the time value of money concept, the assets evaluation, the capital budgeting, the capital structure, and the cost of capital, and working capital management.

    COURSE LEARNING OUTCOME
    

    At the end of the course the students will be able to:

    • Discuss the principles of finance and the roles of financial market that underline the finance discipline.(C2, PLO1)
    • Demonstrate the concept of time value of money and various decision making techniques in financial planning. (C3,PLO8)
    • Calculate the value of bonds and stock in a market place (C3,PLO8)

    SUPPORT AND CONTACT DETAILS

    • Name: Mimi Suriaty Binti Haji Abdul Rani
    • Email : msuriaty@nilai.edu.my
    • Consultation Hours: Wednesday (08:00 am – 10:00 am) and Thursday (08:00 am – 10:00 am

    
    
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• Course Introduction_OBA3105_Introduction to Finance

  In this course, students will study the basic concepts from finance and to demonstrate how these can be used to understand real world practical issues facing investors, firms and regulators. Investment provides managers with the information and knowledge they need to support in decision making hence gaining a clear understanding of the theories and concepts, and its principles that will be useful for analysing the behavioural finance and markets in an economy, and its underlying tools. Also, the course seeks to introduce students to the core finance concepts underlying the investment function and show how these concepts can be used to understand the working of the financial markets.

  Mimi Suriaty Binti Abdul Rani

  Course Leader

  
  

   

  
  
  Topic
  1
• Course Guide_OBA3105_Introduction to Finance

  Please read the course guide given below. This course guide will contains important information about this course  such as the course learning outcomes, the minimum amount of time you should spend for this course, the outlines of the topics covered, class schedules, contact details of your course facilitator, assessments and others. You are required to go through the course guide before you proceed to other learning activities. You are advised to consult your course facilitator either through the discussion forum or during consultation hours if you wish to seek clarification on any matters related to this course. 

  
  

  
  

  • BA3105_Introduction to Finance_Module Guideline File
  Topic
  2
• Online Class Schedule

  LECTURE SCHEDULE BY WEEK
  
  

  Week	Topic	Remark
  Week 1	Module briefing and ice breaking Chapter 1 – Introduction to finance	Lecture & Tutorial
  Week 2	Chapter 2 – Introduction to Islamic Finance	Lecture & Tutorial
  Week 3	Chapter 3 – Financial statement & cash flow (Part 1)	Lecture & Tutorial
  Week 4	Chapter 3 – Financial statement & cash flow (Part 2)	Lecture & Tutorial
  Week 5	Chapter 4 – Time value of money (Part 1)	Lecture & Tutorial
  Week 6	Chapter 4 – Time value of money (Part 2)	Lecture & Tutorial
  Week 7	Chapter 5 – Capital Budgeting	Lecture & Tutorial
  Week 8	Chapter 6 – Risk and return (Part 1)	Lecture & Tutorial
  Week 9	Chapter 6 – Risk and return (Part 2)	Lecture & Tutorial
  Week 10	Chapter 7 – Bond valuations (Part 1)	Lecture & Tutorial
  Week 11	Chapter 7 – Bond valuations (Part 2)	Lecture & Tutorial
  Week 12	Chapter 8 -  Common stock valuation (Part 1)	Lecture & Tutorial
  Week 13	Chapter 8 -  Common stock valuation (Part 2)	Lecture & Tutorial
  Week 14	Chapter 9 - Working Capital Management Presentation & revision	Lecture & Tutorial

  
  

  
  
  Topic
  3
• Assessment_OBA3105_Introduction to Finance

  ASSESSMENT METHODS AND TYPES:

  Tasks	Percentage (%)
  Assignment	15
  Online Presentation (Assignment)	5
  Discussion	5
  Quiz	5
  Mid Term Examination	40
  Final Examination	30
  Total	100

   

  FORMATIVE ASSESSMENT:

  Chapter 1 – Introduction to finance

  Knowledge check activity: Discussion sessions (2.5%)

  Chapter 2 – Introduction to Islamic Finance     

  Knowledge check activity

  Chapter 3 – Financial statement & cash flow

  Knowledge check activity

  Chapter 4 – Time value of money

  Knowledge check activity :  Quiz: (5%) and Discussion (2.5%)

  SUMMATIVE ASSESSMENT

   

  Chapter 5 – Capital Budgeting

  Knowledge check activity: Assignment 2 (15%) AND Presentation (10%)

  Chapter 6 – Risk and return

  Knowledge check activity: Discussion (2.5%)

  Chapter 7 – Bond valuations

  Knowledge check activity (Quiz: 5%) AND Assignment 2 (10%)

   Chapter 8 - Common stock valuation

  Knowledge check activity (Quiz: 5%) AND Assignment 3 (10%)

  Chapter 9 - Working Capital Management
  

  Knowledge check activity
  

   

   

  
  
  
  Topic
  4
• ICE BREAKING SESSION_OBA3105_Introduction to Finance

  WEEK 1 (Discussion)
  

  • Discussion Board Session (1) Forum

    Instruction : The student needs to do some self-introduction.

    
    

  • Discussion Board Session (2) Forum

    Instruction : The student need explain about their basic knowledge in Finance and current issues in Finance.

    POINTS TO PONDER/TAKEAWAYS
    

    Current issues in Finance:

    1. Rise of FinTech and changing corporate governance.

    Massa cites the growth of financial technology, or FinTech, as a second vital issue that the sector must confront. A convergence of technology and big data is enabling smaller, nimbler companies to deliver financial services to customers in innovative ways, threatening the predominance of established financial players, particularly banks.

    2. COVID-19: Impact on Malaysian Financial Institutions

    The COVID-19 pandemic has the potential to disrupt banking performance, so that the company can continue to operate amid the co-19 pandemic, the employees are required to continue to have good performance. By knowing several factors that affect the performance of banking employees, among remuneration and work motivation during a co-19 pandemic it is expected that the banking industry can improve the performance of its employees.

  Topic
  5
• Chapter 1 : Introduction to Finance

  LESSON 1: INTRODUCTION TO FINANCE
  

  WEEK 1 (Lecture) and (Tutorial)
  

  SYNOPSIS / OVERVIEW
  

  Lesson 1 introduces to the basic concepts needed to understand the financial manager’s decision-making process. To achieve that, student will learn about the basic forms a business can take and the goal of the financial manager. At the end of the Lesson 1 students can develop an understanding of the issue’s managers must consider when making financial decisions.

  Here are the main topics to be covered in Lesson 1 (Week 2):

  • Definition of Finance
  • Four (4) basics area of Finance
  • Importance of Finance
  • Financial manager
  • Financial management decisions
  • Form of business organizations
  • Financial market

  LEARNING OUTCOMES
  

  By the end of this lesson, student should be able to:

  • Explain the basic types of financial management decisions and the role of the financial manager.
  • Describe the financial implications of the different forms of business organization.
  • Discuss the goal of financial management.

  REQUIRED READINGS
  

  Chapter 1: Introduction of Finance

  Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

  
  

  • OBA3105_INTRODUCTION TO FINANCE_NOTE 1_CHAPTER 1 File

    CHAPTER 1 INTRODUCTION TO FINANCE

    KEY CONCEPTS AND SKILLS

    • Know the basic types of financial management decisions and the role of the financial manager.
    • Know the financial implications of the different forms of business organization.
    • Know the goal of financial management.

    
    

  • OBA3105_INTRODUCTION TO FINANCE_VIDEO_CHAPTER 1 File

    CHAPTER 1 : INTRODUCTION TO FINANCE

    
    

  • SELF CHECK 1.1 : Online Discussion Forum

    View

    Once completed view the video. Let's discuss!

    1. The goal of Financial Management. What goal should always motivate the actions of the firm's financial manager?
    2. Agency Problems. Who owns a corporation? 
    3. Describe the process whereby the owners control the firm's management. 
    4. What is the main reason that an agency relationship exists in the corporate form of organization? In this context, what kinds of problems can arise?

    
    
    

  • SELF CHECK 1.2 Assignment

    Opened: Sunday, 30 October 2022, 12:00 AM

    Due: Sunday, 6 November 2022, 12:00 AM

    View

    TRUE/FALSE

    1. The valuation Principle shows how to make the costs and benefits of a decision comparable so that we can  evaluate them properly. (T/F)
    2. Partnerships are the most common type of business firm in the world. (T/F)
    3. Financial decisions require that you weigh alternatives in strictly monetary terms.(T/F)
    4. Corporations have come to dominate the business world through their ability to raise large amounts of capital by the sale of ownership shares to anonymous outside investors.(T/F)

    
    
    

  • SELF CHECK 1.3 _TUTORIAL (1) Assignment

    Opened: Sunday, 30 October 2022, 12:00 AM

    Due: Sunday, 6 November 2022, 12:00 AM

    View

    TUTORIAL_1
    
    

    1. Goal of Financial Management. What goal should always motivate the actions of the firm's financial manager?
    2. Agency Problems. Who owns a corporation? Describe the process whereby the owners control the firm's management. What is the main reason that an agency relationship exists in the corporate form of organization? In this context, what kinds of problems can arise?
    3. Primary versus Secondary Markets. You have probably noticed coverage in the financial press of an initial public offering (IPO) of a company's securities. Web search company Google is a relatively recent example. Is an IPO a primary-market transaction or a secondary-market transaction?
    4. Ethics and Firm Goals. Can our goal of maximizing the value of the stock conflict with other goals, such as avoiding unethical or illegal behavior? Do you think subjects such as customer and employee safety, the environment, and the general good of society fit in this framework, or are they essentially ignored? Try to think of some specific scenarios to illustrate your answer.
    5. International Firm Goal. Would our goal of maximizing the value of the stock be different if we were thinking about financial management in a foreign country? Why or why not?
    6. Agency Problems and Corporate Ownership. Corporate ownership varies around the world. Historically, individuals have owned most shares in public corporations in the United States. In Germany and Japan, however, banks, other large financial institutions, and other companies own most of the stock in public corporations. Do you think agency problems are likely to be severe in Germany and Japan than in the United States? Why? In recent years, large financial institutions such as mutual funds and pension funds have been becoming the dominant owners of stock in the United States, and these institutions are becoming more active in corporate affairs. What are the implications of this trend for agency problems and corporate control?

    
    
    
  • 1.4 POINTS TO PONDER / TAKEAWAY Lesson

    The Financial Management Decision Process.

    What are the three types of financial management decisions? For each type of a decision, give an example of a business transaction that would be relevant.

    
    Sole Proprietorships and Partnerships.
    What are the four primary disadvantages to the sole proprietorship and partnership forms of business organization? What benefits are there to these types of business organizations as opposed to the corporate form?

    
    Corporations.
    What is the primary disadvantage of the corporate form of organization? Name at least two of the advantages of a corporate organization.

    
    Agency Problems.
    Who owns a corporation? Describe the process whereby the owners control the firm's management. What is the main reason that an agency relationship exists in the corporate form of organization? In this context, what kinds of problems can arise?

     

    
    
    

  Topic
  6
• Chapter 2 – Introduction to Islamic Finance

  CHAPTER 2: INTRODUCTION TO ISLAMIC FINANCE
  

  WEEK 2 (Lecture) and (Tutorial)
  

  SYNOPSIS / OVERVIEW
  

  Lesson 2 introduces the concepts of Islamic economics and Divine Guidance in Islam for the development of an interest-free economy based on the principles of socio-economic justice. The module also explains the objective (the maqasid) of Shari'ah that provides a moral framework for conducting business and personal dealings with justice and fairness.

  
  

  Here are the main topics to be covered in Chapter 2 (Week 3):

  • History of Islamic Banking and Finance
  • Internationalization of Islamic Banking and Finance
  • Islamic Banking and Finance Today
  • Development of IBF in Malaysia
  • Basics of Islamic Banking
  • Comparison of Islamic With Conventional Banks

  LEARNING OUTCOMES
  

  By the end of this lesson, student should be able to:

  • Explain business and financial activities during the time of the Prophet.
  • Discuss early establishment of Islamic Banking and Finance: 1950-1970s.
  • Describe the major difference between the Islamic and conventional banking system.

  
  

  REQUIRED READINGS
  

  Chapter 1: Introduction to the class. Overview of Shari‘ah, Islamic thought and practice, the place of Shari‘ah within the Islamic religion, and Shari‘ah-oriented transactions.

  Arshad A. Ahmed, co-authored with Umar F. Moghul, Contractual Forms in Islamic Finance Law, and Islamic Investment Company of the Gulf (Bahamas) Ltd. v. Symphony Gems N.V. & Others: A First Impression of Islamic Finance, 27 Fordham International Law Journal 150-154, 156-165 (December 2003) Seyyed Hossein Nasr, The Heart of Islam 113-156 (2004).

  • OBA3105_INTRODUCTION TO FINANCE_NOTE 2_CHAPTER 2 File

    KEY CONCEPTS AND SKILLS
    

    • Explain business and financial activities during the time of the Prophet.
    • Discuss early establishment of Islamic Banking and Finance: 1950-1970s.
    • Describe the major difference between the Islamic and conventional banking system.

    
    
  • OBA3105_INTRODUCTION TO FINANCE_VIDEO_CHAPTER 2_PART 1 File

    CHAPTER 2 : INTRODUCTION TO ISLAMIC FINANCE_PART 1
    
  • OBA3105_INTRODUCTION TO FINANCE_VIDEO_CHAPTER 2_PART 2 File

    CHAPTER 2 : INTRODUCTION TO ISLAMIC FINANCE_PART 2
    
  • SELF CHECK 2.1 : Online Discussion Forum

    View

    Once completed reading your notes (PDF). Let's discuss!

    1. List down FOUR (4) major differences between the Islamic and conventional banking system.
       
       

    
    
    

  • 2.2 POINTS TO PONDER / TAKEAWAY Lesson

    Differences between conventional banks and Islamic banks.
    
    
    
    
    
    

  Topic
  7
• Chapter 3 – Financial Statement & Cash Flow_Part 1

  CHAPTER 3: FINANCIAL STATEMENT AND CASH FLOW
  

  WEEK 3 (Lecture) and (Tutorial)
  

  SYNOPSIS / OVERVIEW
  

  Lesson 3 introduces understanding the fundamentals of finance is vital to business education. This introductory unit addresses the importance of understanding ratios for financial statement analysis and analysis of cash flows. The main ratios explained are solvency (or liquidity ratios), financial ratios, profitability ratios, and market value ratios. In addition, student will learn about financial growth, what financial factors determine growth, the importance of maintaining a sustainable growth rate, and how to use financial statement information to manage growth.

  Here are the main topics to be covered in Chapter 3 (Week 4):

  • The Balance Sheet
  • The Income Statement
  • Cash Flow

  LEARNING OUTCOMES
  

  By the end of this lesson, student should be able to:

  • Explain the difference between book value and market value.
  • Identify the difference between accounting income and cash flow.
  • Describe how to determine a firm’s cash flow from its financial statements.

  REQUIRED READINGS
  

  Chapter 4: Financial Statement and Cash Flow

  Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

  
  

  • OBA3105_CHAPTER 3: FINANCIAL STATEMENT AND CASH FLOW_NOTES_CHAPTER 3 File

    KEY CONCEPTS AND SKILLS

    • Explain the difference between book value and market value
    • Identify the difference between accounting income and cash flow
    • Discuss how to determine a firm’s cash flow from its financial statements        

    
    

  • OBA3105_OBA3105_INTRODUCTION TO FINANCE_CHAPTER 3_VIDEO_CHAPTER 3 File

    CHAPTER 3 : FINANCIAL STATEMENT AND CASH FLOW PART 1 AND 2
    

  • SELF CHECK 3.1 : Online Discussion Forum

    View

    Once completed view the video. Let's discuss!

    Group Assignment (1) _Discussion

    ▪ Topic: Ratio and Financial Statement Analysis

    ▪ Duration of submission: 2 weeks

    Question: Consider this situation: You are the manager of a small retail chain and your boss has given you the task of deciding whether to invest in a second store. You know that adding a second store means greater potential for growth. However, you also know that adding a new store will require spending cash. Facing this tough decision, how could you determine whether the company can "handle" such an investment? The answer might lie in ratio analysis.

    
    
    

  Topic
  8
• Chapter 3 – Financial Statement & Cash Flow_Part 2

  CHAPTER 3: FINANCIAL STATEMENT AND CASH FLOW
  

  WEEK 4 (Lecture) and (Tutorial)
  

  SYNOPSIS / OVERVIEW
  

  Lesson 3 introduces understanding the fundamentals of finance is vital to business education. This introductory unit addresses the importance of understanding ratios for financial statement analysis and analysis of cash flows. The main ratios explained are solvency (or liquidity ratios), financial ratios, profitability ratios, and market value ratios. In addition, student will learn about financial growth, what financial factors determine growth, the importance of maintaining a sustainable growth rate, and how to use financial statement information to manage growth.

  Here are the main topics to be covered in Chapter 3 (Week 4):

  • Ratio

  LEARNING OUTCOMES
  

  By the end of this lesson, student should be able to know:

  • Explain how to standardize financial statements for comparison purposes.
  • Compute an important financial ratios.
  • Identify the determinants of a firm’s profitability and growth.
  • Understand the problems and pitfalls in financial statement analysis.

  REQUIRED READINGS
  

  Chapter 4: Financial Statement and Cash Flow

  Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

  
  

  • OBA3105_INTRODUCTION TO FINANCE_NOTE 3_CHAPTER 3 File

    KEY CONCEPTS AND SKILLS

    • Explain the difference between book value and market value
    • Discuss the difference between accounting income and cash flow
    • Identify how to determine a firm’s cash flow from its financial statements        

    
    

  • SELF CHECK 3.2 _TUTORIAL (2) Assignment

    Opened: Sunday, 30 October 2022, 12:00 AM

    Due: Sunday, 6 November 2022, 12:00 AM

    View

    TUTORIAL_2_ Case Study
    

    ▪ Topic: The Concept of cash flow

    ▪ Duration of submission: 1 week

    
    

    
    
    
  • 3.3 POINTS TO PONDER / TAKEAWAY Lesson

    • Tools of Financial Statement Analysis:

    
    
    
    

    • Cash flow formula:

    
    

    
    
    
    

  Topic
  9
• Chapter 4 – Time Value of Money_Part 1

  CHAPTER 4: TIME VALUE OF MONEY
  

  WEEK 5 (Lecture) and (Tutorial)
  

  SYNOPSIS / OVERVIEW
  

  Chapter 4 introduces the concept of time value of money and explains how to determine the value of money today vs. tomorrow by using finance tools to determine present and future values. Also, in Lesson 4 exposes the concept of interest rates and how to apply them when multiple periods are considered.

  Here are the main topics to be covered in Chapter 4 (Week 5):

  • Future Value and Compounding
  • Present Value and Discounting
  • More on Present and Future Values
  • Implied interest rate
  • Number of periods

  LEARNING OUTCOMES
  

  By the end of this lesson, student should be able to:

  • Calculate the future value of an investment made today.
  • Calculate the present value of cash to be received at some future date.
  • Calculate the return on an investment.
  • Calculate the number of periods that equates a present value and a future value given an interest rate.

  Be able to solve time value of money problems using:

  • Formulas
  • Financial Calculator

  REQUIRED READINGS
  

  Chapter 4 : Time Value of Money

  Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

  
  

  • OBA3105_INTRODUCTION TO FINANCE_NOTE 4(a)_CHAPTER 4 File

     KEY CONCEPTS AND SKILLS

    Be able to compute:

    • Calculate the future value of an investment made today.
    • Calculate the present value of cash to be received at some future date.
    • Calculate the return on an investment.
    • Calculate the number of periods that equates a present value and a future value given an interest rate.

    Be able to solve time value of money problems using:

    • Formulas
    • Financial Calculator

    
    

  • OBA3105_INTRODUCTION TO FINANCE_VIDEO 4(a)_CHAPTER 4 File

     CHAPTER 4 : TIME VALUE OF MONEY PART 1

    
    

  • SELF CHECK 4.1 (a) : Online Discussion Forum

    View

    Once completed view the video. Let's discuss!

    Tutorial (3) _Present Value, Future Value, Discounted rate and Number of Periods calculations.

    ▪ Details: 10 questions

    ▪ Duration of submission: 1 week

     Question 1:
    

    You have deposited RM1000 today and the bank offers interest rate a 7% interest rate per annum. If you plan to save your money for 3 years, determine the future values in Years 1, 2 and 3.

    Question 2:

    Alvin has won a jackpot which pays her RM5, 000 per year for 3 years, beginning one year from today. Alvin wants to know the present value of the jackpot using a discount rate of 7%.

    Question 3:

    Remy will retire in 20 years. This year he wants to fund an amount of $15,000 to become available in 20 years. How much does he have to deposit into a pension plan earning 7% annually?

    Question 4:

    James needed a $1191 in 3 years to be off some debt. How much should James put in a saving account that earns 6% today?

    Question 5:

    Suppose we invest $200,000 in an investment that pays 4% interest per year, compounded quarterly. What will be the future value of this investment at the end of 10 years?

    Question 6:

    Suppose that the goal is to have $75,000 in an account by the end of four years. And suppose that interest on this account is paid at a rate of 5% per year, compounded semi-annually. How much must be deposited in the account today to reach this goal?

    Question 7:

    Consider the growth rate of dividends for ABC Corp. ABC Corp pays dividends each year. In 2006, for example, General Electric paid dividends of $0.317 per share of its common stock, whereas in 2016 the company paid $1.03 in dividends per share in 2016.

    Question 8:

    You can buy a security now for $1000 and it will pay you $1,191 three years from now. What annual rate of return are you earning?

    Question 9:

    Your friend deposits $100,000 into an account paying 8% per year. She wants to know how long it will take before the interest makes her a millionaire.

     Question 10:

    If you can earn 12% on your investments, and you would like to accumulate $100,000 for your child’s education at the end of 18 years, how much must you invest annually to reach your goal?

    
    

    
    

    
    

  • 4.2 POINTS TO PONDER / TAKEAWAY Lesson

    
    

    
    
    
    

    
    

    
    
    
    

  Topic
  10
• Chapter 4 – Time Value of Money_Part 2

  CHAPTER 4: TIME VALUE OF MONEY
  

  WEEK 6 (Lecture) and (Tutorial)
  

  SYNOPSIS / OVERVIEW
  

  Lesson 4 introduces the concept of time value of money and explains how to determine the value of money today vs. tomorrow by using finance tools to determine present and future values. Also, in Lesson 4 exposes the concept of interest rates and how to apply them when multiple periods are considered.

  Here are the main topics to be covered in Lesson 4 (Week 6):

  • Future and Present Values of Multiple Cash Flows
  • Valuing Level Cash Flows: Annuities and Perpetuities
  • Comparing Rates: The Effect of Compounding Periods

  LEARNING OUTCOMES
  

  By the end of this lesson, student should be able to:

  • Calculate the number of periods that equates a present value and a future value given an interest rate.
  • Calculate the Future and Present Values of Multiple Cash Flows.
  • Calculate valuing Level Cash Flows: Annuities and Perpetuities.
  • Comparing Rates: The Effect of Compounding Periods.

  Be able to solve time value of money problems using:

  • Formulas
  • Financial Calculator

  REQUIRED READINGS
  

  Chapter 4 : Time Value of Money

  Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

  
  

  • OBA3105_INTRODUCTION TO FINANCE_VIDEO 4(b)_CHAPTER 4 File

    CHAPTER 4 : TIME VALUE OF MONEY PART 2
    

    
    

  • SELF CHECK 4.1 (b) : Online Discussion Forum

    View

    Once completed view the video. Let's discuss!

    Tutorial (4) _Discounted Cashflow calculations.

    ▪ Details: 10 questions

    ▪ Duration of submission: 1 week

     

    Question 1 :

    You are saving for a new house, and you put $10,000 per year in an account paying 8%. The first payment is made today. How much will you have at the end of 3 years?

    Question 2 :

    Mr. James are ready to buy a house and he allocate his money which is amount RM 20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of the loan value. His annual salary amount was RM 36,000. The bank is willing to allow his monthly mortgage payment to be equal to 28% of Mr. James’s monthly income. The interest rate on the loan is 6% per year with monthly compounding (.5% per month) for a 30-year fixed rate loan.

    a.    How much money will the bank loan for Mr. James?

    b.   How much can Mr. James offer for the house?

    Question 3 :

    You are offered an investment that will pay you RM200 in year 1, RM400 the next year, RM600 the following year, and RM800 at the end of the 4th year. You can earn 12% on similar investments. What is the most you should pay for this one?

    Question 4 :

    How much money will you accumulate by the end of year 10 if you deposit $3,000 each for the next ten years in a savings account that earns 5% per year?

    Question 5 :

    Suppose you would like to have $25,000 saved 6 years from now to pay towards your down payment on a new house. If you are going to make equal annual end-of-year payments to an investment account that pays 7%, how big do these annual payments need to be?

    Question 6 :

    How much must you deposit in a savings account earning 8% interest to accumulate $5,000 at the end of 10 years?

    Question 7 :

    If you can earn 12% on your investments, and you would like to accumulate $100,000 for your child’s education at the end of 18 years, how much must you invest annually to reach your goal?

    Question 8 :

    What is the present value of an annuity of $10,000 to be received at the end of each year for 10 years given a 10 percent discount rate?

    Question 9 :

    What is the present value of $600 perpetuity at 7% discount rate?

    Question 10 :

    How much money will be in an account in 5 years if $10,000 is deposited now at an interest rate of 1% per month? Use three different interest rates: (a) monthly, (b) quarterly, and (c) yearly.

    
    

    
    

  • SELF CHECK 4.1 (c) : Online Quiz (1)

    View

    https://quizizz.com/join?gc=03534240
    

  • 4.2 POINTS TO PONDER / TAKEAWAY Lesson

    
    

    
    
    
    

    
    

    
    
    
    

  Topic
  11
• Chapter 5 – Capital Budgeting

  CHAPTER 5: CAPITAL BUDGETING
  

  WEEK 7 (Lecture) and (Tutorial)
  

  SYNOPSIS / OVERVIEW
  

  Lesson 5 introduces the student on how a financial manager makes capital investment decisions using financial tools. It is especially the case that this lesson addresses the concept of capital budgeting and how to evaluate investment projects using the net present value calculations, internal rate of return criteria, profitability index, and the payback period method. This topic also will teach the student on how to determine which cash flows are relevant (should be considered) when making an investment decision.
  

  Here are the main topics to be covered in Chapter 5 (Week 7):

  • Net Present Value
  • The Payback Rule
  • The Average Accounting Return
  • The Internal Rate of Return
  • The Profitability Index
  • The Practice of Capital Budgeting

  LEARNING OUTCOMES
  

  By the end of this lesson, student should be able to:

  • Calculate the payback rule and its shortcomings.
  • Identify Accounting rates of return and their problems.
  • Calculate internal rate of return and its strengths and weaknesses.
  • Calculate net present value rule and why it is the best decision criteria.
  • Identify modified internal rate of return.
  • Calculate the profitability index and its relation to NPV.

  
  

  REQUIRED READINGS
  

  Chapter 7: Investment Appraisal

  Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

  • OBA3105_INTRODUCTION TO FINANCE_VIDEO 5_CHAPTER 5 File

     CHAPTER 5 : CAPITAL BUDGETING

    
    

  • SELF CHECK 5.1 : Online Discussion Forum

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    Tutorial (5) _Capital Budgeting calculations.

    ▪ Details: 2 questions

    ▪ Duration of submission: 1 week

     Question 1:

     ABX Company has the following mutually exclusive projects.

    Year	Project A Cash Flow (RM)	Project B Cash Flow (RM)
    0	650	-700
    1	100	300
    2	250	-200
    3	250	550
    4	200	200
    5	100	80

      

    a.       Calculate the payback of Project A.                                                                                                            

    b.       Calculate the discounted payback of Project A at required return of 8 percent.                                   

    c.       Calculate the IRR of Project A.                                                                                                                      

    d.       Calculate the MIRR of project B. 

    e.       Using the NPV method and assuming a cost of capital of 8 percent, which of these projects should

               be accepted.                   

    Question 2:

    A company is considering three possible capital investment projects, which have the following estimated cash flows (in $000):

     

    a.       Rank these projects in order of acceptability using:

                                          i.          Payback period.

                                         ii.          Net present value using a discount rate of 20%.

    b.       Assuming the projects are independent and indivisible and that the company has up to $1 million to

              invest:

                                i.          Explain which projects should be accepted.

                               ii.          Find the total net present value for the company’s total investment.

    c.       Calculate profitability indices for all the projects, and show which projects should be accepted, and

              what the total net present value will be, if the projects are independent and divisible, and the

              company has up to $1 million to invest.

    d.       Explain the advantages and disadvantages of the appraisal methods used in (a) above.

     

    
    

    
    

  • 5.2 POINTS TO PONDER / TAKEAWAY Lesson

    
    

    
    

    
    

    
    

  Topic
  12
• Chapter 6 – Risk and Return_Part 1

  CHAPTER 6 : RISK AND RETURN
  

  WEEK 8 (Lecture) and (Tutorial)
  

  SYNOPSIS / OVERVIEW
  

  Lesson 6 and 7 provides an explanation of the relationship between risk and return. Every investment decision carries a certain amount of risk. Therefore, the role of the financial manager is to understand how to calculate the "riskiness" of an investment so that he or she can make sound financial and business decisions. This relationship between risk and return is explained in this lesson. Specifically, student will learn how to compute the level of risk by calculating expected values and the standard deviation. Also, student will learn about handling risk in a portfolio with different investments and how to measure the expected performance of a stock investment when it is being affected by the overall performance of a stock market.
  

  Here are the main topics to be covered in Chapter 6 (Week 8):

  • Expected Returns and Variances
  • Portfolios
  • Announcements, Surprises, and Expected Returns
  • Risk: Systematic and Unsystematic
  • Diversification and Portfolio Risk

  LEARNING OUTCOMES

  By the end of this lesson, student should be able to:

  • Calculate expected returns.
  • Identify the impact of diversification.

  
  

  REQUIRED READINGS
  

  Chapter 6: Risk and Return

  Brigham E. and Houston J. Fundamentals of Financial Management. 14th ed., South-Western College Pub., 2016.

  Chapter 8: Risk and Return

  Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

  • OBA3105_INTRODUCTION TO FINANCE_VIDEO 6_CHAPTER 6_PART 1 AND 2 File

    View

    CHAPTER 6 : RISK AND RETURN

    
    

  • 6.2 POINTS TO PONDER / TAKEAWAY Lesson

    

    
    

  Topic
  13
• Chapter 6 – Risk and Return_Part 2

  Chapter 6 and 7 provides an explanation of the relationship between risk and return. Every investment decision carries a certain amount of risk. Therefore, the role of the financial manager is to understand how to calculate the "riskiness" of an investment so that he or she can make sound financial and business decisions. This relationship between risk and return is explained in this lesson. Specifically, student will learn how to compute the level of risk by calculating expected values and the standard deviation. Also, student will learn about handling risk in a portfolio with different investments and how to measure the expected performance of a stock investment when it is being affected by the overall performance of a stock market.
  

  Here are the main topics to be covered in Chapter 7 (Week 9):

  • Diversification and Portfolio Risk
  • Systematic Risk and Beta
  • The Security Market Line
  • The SML and the Cost of Capital: A Preview

  LEARNING OUTCOMES

  By the end of this lesson, student should be able to:

  • Discuss the systematic risk principle.
  • Describe security market line and the risk-return trade-off.

  
  

  
  

  REQUIRED READINGS
  

  Chapter 6: Risk and Return

  Brigham E. and Houston J. Fundamentals of Financial Management. 14th ed., South-Western College Pub., 2016.

  Chapter 8: Risk and Return

  Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

  • SELF CHECK 6.1 : Individual Assignment (2) _Risk and Return calculations. Forum

    View

    Once completed view the video. Let's discuss!

    INDIVIDUAL ASSIGNMENT 2

    Duration of submission: 3 weeks
    

    COURSE NAME                                : INTRODUCTION TO FINANCE

    COURSE CODE                                : BA 3105

    LECTURER                                         : MS. MIMI SURIATY BINTI ABDUL RANI

    TOPIC OF ASSIGNMENT                 : RISK AND RETURN

    ASSIGNMENT OBJECTIVE               :

    1.     Able to assess and apply a range of disciplines, techniques and approaches in problem solving.

    2.     Able to adopt an integrative perspective in the identification, analysis and resolution to problem.

     

    COURSEWORK	WEIGHTAGE (%)	LEARNING OUTCOME (REFER TO COURSE OUTCOME)
    		CO1	CO2	CO3
    INDIVIDUAL ASSIGNMENT (2)	10	-	X	X

    
    
    
    

  • BA3105_Introduction to Finance_Individual Assignment 2_Details File
  • 6.2 POINTS TO PONDER / TAKEAWAY Lesson

    

    
    

  Topic
  14
• Chapter 7 – Bond Valuations_Part 1

  CHAPTER 7 : BOND VALUATION
  

  WEEK 10 (Lecture) and (Tutorial)
  

  SYNOPSIS / OVERVIEW
  

  Chapter 7 and 8 cover the basics of fixed income analysis. The main topics covered are features of fixed income securities and overview of bond sectors and instruments, risks associated with investing in bonds to include interest rate risk and credit risk, introduction to the valuation of fixed income securities to include valuing mortgage-backed and asset-backed securities and bonds with embedded options.
  

  Here are the main topics to be covered in Chapter 8 (Week 10):
  

  • Bonds and Bond Valuation
  • More on Bond Features
  • Bond Ratings
  • Some Different Types of Bonds
  • Bond Markets
  • Inflation and Interest Rates
  • Determinants of Bond Yields

  LEARNING OUTCOMES
  

  By the end of this lesson, student should be able to:

  • Identify the important bond features and bond types.
  • Calculate bond values and why they fluctuate.

  REQUIRED READINGS
  

  Chapter 8: Bond Valuation

  Brigham E. and Houston J. Fundamentals of Financial Management. 14th ed., South-Western College Pub., 2016.

  Chapter 6: Debt Instruments

  Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

  
  

  • OBA3105_INTRODUCTION TO FINANCE_VIDEO 7_CHAPTER 7_PART 1 AND 2 File

    CHAPTER 7 : BOND VALUATION

    
    

  • SELF CHECK 7.1 : Online Discussion Forum

    View

    Once completed view the video. Let's discuss!

    Tutorial (6) _Bond Valuations.

    ▪ Details: 10 questions

    ▪ Duration of submission: 1 week

     Question 1 :

    Consider a bond issued ten years ago with an at – issue time to maturity of 30 years. The bond’s coupon rate is 8 percent, and it currently trades in the bond market for 109 percent. Assuming a par value of $1000, what is the bond’s current time to maturity, semiannual interest payment and bond price in dollars?

    Question 2 :

    ABX Industrial Products' bonds have a 7.60 percent coupon and pay interest annually. The face value is $1,000 and the current market price is $1,062.50 per bond. The bonds mature in 16 years. What is the yield to maturity?

    Question 3 :

    The bonds issued by Stainless Tubs bear a 6 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $989. What is the yield to maturity?

    Question 4 :

    Petron Oil Supply offers 7.5 percent coupon bonds with semiannual payments and a yield to maturity of 7.68 percent. The bonds mature in 6 years. What is the market price per bond if the face value is $1,000?

    Question 5 :

    Great Com. has a 6.75 percent coupon bond outstanding that matures in 10.5 years. The bond pays interest semiannually. What is the market price per bond if the face value is $1,000 and the yield to maturity is 6.69 percent?

    Question 6 :

    MyIP Properties offers a 9.5 percent coupon bond with annual payments. The yield to maturity is 11.2 percent and the maturity date is 11 years from today. What is the market price of this bond if the face value is $1,000?

    Question 7 :

    What is the price of the following bond?

    • Face value: $1,000
    • Maturity: 10 years
    • Coupon rate: 8%
    • Discount rate: 9%

    Question 8 :

    What is the price of the following bond?

    • Face value:  $1,000
    • Maturity: 50 years
    • Coupon rate: 10%
    • Discount rate: 12%

    Question 9 :

    What is the value of the following semi-annual bond?

    • Face value: $1,000
    • Maturity:  10 years
    • Coupon rate:  10%
    • Discount rate:  9%

    Question 10 :

    What is the value of the following semi-annual bond?

    • Face value:  $1,000
    • Maturity: 9.5 years
    • Coupon rate: 7%
    • Discount rate: 7%

     

    
    

  Topic
  15
• Chapter 7 – Bond Valuations_Part 2

  CHAPTER 7 : BOND VALUATION
  

  WEEK 11 (Lecture) and (Tutorial)
  

  SYNOPSIS / OVERVIEW
  

  Chapter 7 cover the basics of fixed income analysis. The main topics covered are features of fixed income securities and overview of bond sectors and instruments, risks associated with investing in bonds to include interest rate risk and credit risk, introduction to the valuation of fixed income securities to include valuing mortgage-backed and asset-backed securities and bonds with embedded options.
  

  Here are the main topics to be covered in Chapter 7 (Week 11):
  

  • Bonds and Bond Valuation
  • More on Bond Features
  • Bond Ratings
  • Some Different Types of Bonds
  • Bond Markets
  • Inflation and Interest Rates
  • Determinants of Bond Yields

  LEARNING OUTCOMES
  

  By the end of this lesson, student should be able to:

  • Explain bond ratings and what they mean.
  • Discuss the impact of inflation on interest rates.
  • Explain the term structure of interest rates and the determinants of bond yields.

  REQUIRED READINGS
  

  Chapter 8: Bond Valuation

  Brigham E. and Houston J. Fundamentals of Financial Management. 14th ed., South-Western College Pub., 2016.

  Chapter 6: Debt Instruments

  Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

  
  

  • SELF CHECK 7.2 : Online Quiz (2)

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    https://quizizz.com/join?gc=53612720
    

  • 7.3 POINTS TO PONDER / TAKEAWAY Lesson

    
    

    
    

  Topic
  16
• Chapter 8 - Common Stock Valuation_Part 1

  CHAPTER 8 : COMMON STOCK VALUATION
  

  WEEK 12 (Lecture) and (Tutorial)

  SYNOPSIS / OVERVIEW
  

  Chapter 8 cover introduce one widely used model: The CAPM model. The CAPM model is used to compute a company's costs of capital that can be used in net present value calculations. It has been used in court cases for estimating a company's stock value as with the case of the breakup of AT&T in 1984 that resulted in seven companies. Also, the CAPM model is used in computing stock valuation. This lesson will show how the financial manager uses this financial tool to value stock and to determine which stocks are the better options for investors, based on their rates of returns and how they compare to the overall stock market return.
  

  Here are the main topics to be covered in Chapter 8 (Week 12):

  • Common Stock Valuation
  • Some Features of Common and
  • Preferred Stocks
  • The Stock Markets

  
  

  LEARNING OUTCOMES

  By the end of this lesson, student should be able to:

  • Explain on how stock prices depend on future dividends and dividend growth.

  REQUIRED READINGS
  

  Chapter 9: Stock Valuation

  Brigham E. and Houston J. Fundamentals of Financial Management. 14th ed., South-Western College Pub., 2016.

  Chapter 8: Equity Instruments

  Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

  
  

  • OBA3105_INTRODUCTION TO FINANCE_VIDEO 8_CHAPTER 8_PART 1 AND 2 File

    CHAPTER 8 : STOCK VALUATION

    
    

  • SELF CHECK 8.1 : Online Discussion Forum

    View

    Once completed view the video. Let's discuss!

    Tutorial (7) _Stock Valuations.

    ▪ Details: 3 questions

    ▪ Duration of submission: 1 week

    Question 1 :

    How does the application of the three-step valuation process differ for stocks vs. bonds?

    Question 2 :
    Explain the difference between par value, book value, and market value for a common stock. Which is most important and why?

    Question 3 :
    What rights are granted to stockholders? Explain each.

    
    

  Topic
  17
• Chapter 8 - Common Stock Valuation_Part 2

  WEEK 13 (Lecture) and (Tutorial)
  

  Chapter 8 cover introduce one widely used model: The CAPM model. The CAPM model is used to compute a company's costs of capital that can be used in net present value calculations. It has been used in court cases for estimating a company's stock value as with the case of the breakup of AT&T in 1984 that resulted in seven companies. Also, the CAPM model is used in computing stock valuation. This lesson will show how the financial manager uses this financial tool to value stock and to determine which stocks are the better options for investors, based on their rates of returns and how they compare to the overall stock market return.
  

  Here are the main topics to be covered in Chapter 8 (Week 13):

  • Common Stock Valuation
  • Some Features of Common and
  • Preferred Stocks
  • The Stock Markets

  
  

  LEARNING OUTCOMES
  

  By the end of this lesson, student should be able to:
  
  

  • Explain how corporate directors are elected.
  • Discuss how stock markets work.
  • Identify how stock prices are quoted.

  REQUIRED READINGS
  

  Chapter 9: Stock Valuation

  Brigham E. and Houston J. Fundamentals of Financial Management. 14th ed., South-Western College Pub., 2016.

  Chapter 8: Equity Instruments

  Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

  
  

  • SELF CHECK 8.2 : Online Discussion Forum

    View

    Once completed view the video. Let's discuss!

    Tutorial (8) _Stock Valuations.

    ▪ Details: 10 questions

    ▪ Duration of submission: 1 week

     Question 1 :

    Consider a stock that just paid a dividend (D₀) of $5.00 per share with dividends growing at a constant 4% per year. If my required return is 13%, what is the stock worth to me?

    Question 2 :

    Consider a firm that just paid a dividend of $2.60. They plan to increase dividends by 5% in year one, 10% in year two, 20% in year three, 20% in year four, and then 3% per year thereafter. You feel that a 16% required return is appropriate. What is this stock worth to you?

    Question 3 :

    Suppose dividends for a company are projected to grow at 5 percent forever. If the discount rate is 15 percent and the current dividend is $10, what is the value of the stock?

    Question 4 :

    Given the following data, what should the price of the stock be?

    • Required return: 10%
    • Present dividend: $1
    • Dividend growth rate: 5%

    Question 5 :

    An investor requires a return of 12 percent. A stock sells for $18, it pays a dividend of $1, and the dividends compound annually at 6 percent. What should the price of the stock be?

    Question 6 :

    Atlas Motors is expected to grow at a constant rate of 6% a year into the indefinite future. It recently paid a dividend of $2.25 a share. The rate of return on stocks like Atlas is about 11%. What should a share of Atlas Motors sell for today?

    Question 7 :

    If Zinc Co. is expected to pay cash dividends of $8 per share and the firm has a 10% required rate of return, what is the intrinsic value of the stock?

    Question 8 :

    The most recent annual (2006) dividend payment of Warren Industries, a rapidly growing boat manufacturer, was $1.50 per share. The firm’s financial manager expects that these dividends will increase at a 10% annual rate, g1, over the next three years. At the end of three years (the end of 2009), the firm’s mature is expected to result in a slowing of the dividend growth rate to 5% per year, g2, for the foreseeable future. The firm’s required return is 15%.

    Question 9 :

    The dividend of Denham Company, an established textile manufacturer, is expected to remain constant at $3 per share indefinitely. What is the value of Denham’s stock if the required return demanded by investors is 15%?

    Question 10 :

    Big Brothers Inc. has the following information for every investor:

    • The estimated dividends for the next period – $50,000
    • The required rate of return – 10%

    Calculate the price of the stock.

    
    

  • 8.3 POINTS TO PONDER / TAKEAWAY Lesson

    
    

    
    

  Topic
  18
• Chapter 9 - Working Capital Management

  WEEK 14 (Lecture) and (Tutorial)
  

  Chapter 9 Working capital management requires monitoring a company's assets and liabilities to maintain sufficient cash flow to meet its short-term operating costs and short-term debt obligations. Working capital management involves tracking various ratios, including the working capital ratio, the collection ratio, and the inventory ratio. Working capital management can improve a company's cash flow management and earnings quality by using its resources efficiently.

  Here are the main topics to be covered in Chapter 9 (Week 14):

  • Working capital management and the risk - return tradeoff
  • Working capital policy
  • Operating and Cash Conversion Cycles

  LEARNING OUTCOMES

  At the end of this lesson students able to :

  • Explain turn tradeoff involved in firm’s working capital.
  • Discuss the principle of self-  liquidating debt as a tool for managing  firm liquidity.
  • Identify the cash conversion cycle to  measure the efficiency with which a firm  manages its working capital.
  • 
    

  
  

  
  

  
  

  
  

  
  

  
  

  
  

  
  

  
  

  
  

  REQUIRED READINGS
  

  Chapter 9:

  Overview of Working Capital Management

  Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

  
  

  • OBA3105_INTRODUCTION TO FINANCE_VIDEO 9_CHAPTER 9 File

    CHAPTER 9 : WORKING CAPITAL MANAGEMENT

    
    

  • SELF CHECK 9.1 : Online Discussion Forum

    View

    Once completed view the video. Let's discuss!

    Tutorial (9) _Working Capital Management

    ▪ Details: 5 questions

    ▪ Duration of submission: 1 week

    Question 1 :

    ABC, Inc., is considering opening a new convenience store in downtown New York City. The expected annual revenue at the new store is $900,000. To estimate the increase in working capital, analysts estimate the ratio of cash and cash-equivalents to revenue to be 0.03 and the ratios of receivables, inventories, and payables to revenue to be 0.05, 0.10, and 0.04, respectively, in the same industry. What is the incremental cash flow related to working capital when the store is opened?

    Question 2 : 

    Suppose ABC Limited has Current Assets $ 5,00,000 and Current Liabilities of $ 300,000. Fixed Assets are $ 1,00,000. Long Term Debt is $1,00,000 and Short Term Debt included in the Current Liability above is $25,000. Calculate the Working Capital of the Company and analyze the same.

    Question 3:
    

    PQR Limited has Current Assets of $2,00,000 and Current Liabilities of $ $90,000. Inventory of $ 1,50,000 included in current Assets have become Obsolete since the Goods are lying in Inventory for more than 6 months. The Market Value of the same would be $50,000.

     Question 4 :

    AXN Ltd. plans to sell 30,000 units next year. The expected cost of goods sold is as follows:

     

                                                                                                       ($) Per Unit

    
    

    Assuming the monthly sales level of 2,500 units, estimate the gross working capital requirement. Desired cash balance is 5% of the gross working capital requirement and working- progress in 25% complete with respect to manufacturing expenses.

     Question 4 :
    

    Calculate the amount of working capital requirement for CDE Ltd. from the following information:

    
    

                                                                                                      ($) Per Unit

    

    Question 5 :
    

    Raw materials are held in stock on an average for one month. Materials are in process on an average for half-a-month. Finished goods are in stock on an average for one month. Credit allowed by suppliers is one month and credit allowed to debtors is two months. Time lag in payment of wages is 1½ weeks. Time lag in payment of overhead expenses is one month. One fourth of the sales are made on cash basis.

    Cash in hand and at the bank is expected to be $ 50,000; and expected level of production Cash in hand and at the bank is expected to be $ 50,000; and expected level of production amounts to 1,04,000 units for a year of 52 weeks.

    You may assume that production is carried on evenly throughout the year and a period of four weeks is equivalent to a month.

     

     

     

     

    
    

  • 9.2 POINTS TO PONDER / TAKEAWAY Lesson

    
    

    
    

  Topic
  19
• Text Book_BA3105_Introduction to Finance

  Main Reference:

  Titman, Keown, A. J. and Martin, J.D. (2021). Financial Management, (14th ed). Principles and Applications, Pearson Education.

  
  

  
  
  Topic
  20
• Additional Reference

  Additional Reference:
   1. Block, S.B. and Hirt, G.A (2019). Foundations of Financial Management, (17th ed). McGraw Hill and Irwin.
   2. Bodie, Kane, Marcus, (2010). Essentials of Investments, (8th ed), Boston: McGraw-Hill.
   3. Reilly, Brown, Leeds (2008). Investment Analysis and Portfolio Management, 3rd ed), CENGAGE.
  
  
  
  Topic
  21
• Final Exam

  • Final Exam (Remotely Proctored) Quiz

    Opened: Friday, 5 May 2023, 9:00 AM

    Closed: Friday, 5 May 2023, 9:15 AM

    Mark as done
  • FE2 Quiz

    Opened: Friday, 5 May 2023, 9:15 AM

    Closed: Friday, 5 May 2023, 9:30 AM
  Topic
  22