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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


      Lecturer Image
◄Chapter 7 – Bond Valuations_Part 2Chapter 8 - Common Stock Valuation_Part 2►

Chapter 8 - Common Stock Valuation_Part 1

  • 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

    What Is a Stock? (+How to Tell Common Stock From Preferred Stock)

    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.


    • 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.


◄Chapter 7 – Bond Valuations_Part 2Chapter 8 - Common Stock Valuation_Part 2►