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BFN303Management Sciences3 Unitsintermediate

Financial Management

This course provides an overview of financial management principles and practices. It covers key areas such as financial statement analysis, capital budgeting, working capital management, and risk management. Students will learn about sources of finance, cost of capital, dividend policy, and valuation of shares. The course also explores business mergers, takeovers, and the Nigerian banking system, equipping students with the knowledge to make informed financial decisions in various organizational settings.

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208h

Study Time

13

Weeks

16h

Per Week

intermediate

Math Level

Course Keywords

Financial ManagementCapital BudgetingWorking CapitalRisk ManagementDividend Policy

Course Overview

Everything you need to know about this course

Course Difficulty

Intermediate Level

Builds on foundational knowledge

65%

intermediate

📊

Math Level

Moderate Math

📖

Learning Type

Theoretical Focus

Course Topics

Key areas covered in this course

1

Financial Management

2

Sources of Finance

3

Cost of Capital

4

Capital Budgeting

5

Working Capital Management

6

Financial Statement Analysis

7

Mergers and Acquisitions

8

Dividend Policy

9

Share Valuation

10

Asset Management

11

Enterprise Management

12

Financial Risk Management

13

Nigerian Banking System

14

Mortgage Finance

Total Topics14 topics

Ready to Start

No specific requirements needed

This course is designed to be accessible to all students. You can start immediately without any prior knowledge or specific preparation.

Assessment Methods

How your progress will be evaluated (3 methods)

assignments

Comprehensive evaluation of course material understanding

Written Assessment

tutor-marked assessments

Comprehensive evaluation of course material understanding

Written Assessment

final examination

Comprehensive evaluation of course material understanding

Written Assessment

Career Opportunities

Explore the career paths this course opens up for you

Financial Analyst

Apply your skills in this growing field

Investment Banker

Apply your skills in this growing field

Portfolio Manager

Apply your skills in this growing field

Corporate Treasurer

Apply your skills in this growing field

Management Accountant

Apply your skills in this growing field

Industry Applications

Real-world sectors where you can apply your knowledge

BankingInvestment ManagementCorporate FinanceInsuranceReal Estate

Study Schedule Beta

A structured 13-week journey through the course content

Week

1

Module 1: Introduction

6h

Unit 1: Nature, Scope and Purpose of Financial Management

6 study hours

•Define financial management and its objectives.
•Discuss the functions of financial managers, including investment, financing, and dividend decisions.
•Analyze the types of questions financial management seeks to answer.

Week

2

Module 1: Introduction

7h

Unit 2: Sources of Finance

7 study hours

•Identify and differentiate between short-term, medium-term, and long-term sources of finance.
•Explain concepts like rights issue, preference shares, and commercial papers.
•Calculate the cost of cash discount and overdraft facilities.

Week

3

Module 1: Introduction

8h

Unit 3: Cost of Short, Medium and Long Term Finance

8 study hours

•Understand the meaning and usefulness of cost of capital.
•Examine the opportunity cost of capital.
•Calculate the cost of debt, preference shares, and equity using various methods.

Week

4

Module 2: Capital Budgeting and Working Capital

7h

Unit 1: Capital Budgeting Under Certainty 1

7 study hours

•Define capital budgeting and its importance.
•Discuss the procedures involved in capital budgeting decisions.
•Evaluate capital budgeting projects using the payback period method and accounting rate of return.

Week

5

Module 2: Capital Budgeting and Working Capital

8h

Unit 2: Capital Budgeting Under Uncertainty 2

8 study hours

•Explain the modern/discounted cash flow methods of investment appraisal.
•Identify the problems associated with Net Present Value (NPV), Internal Rate of Return (IRR), and Profitability Index (PI).
•Calculate NPV and IRR for investment projects.

Week

6

Module 2: Capital Budgeting and Working Capital

12h

Unit 3: Working capital management

6 study hours

•Explain working capital management and its concepts.
•Understand the factors affecting working capital.
•Describe the operating cycle and its components.

Unit 4: Cash Management

6 study hours

•Define cash management and its objectives.
•Explain cash planning, budgeting, and financing.
•Apply cash management techniques such as accelerated cash collections and optimal cash level determination.

Week

7

Module 2: Capital Budgeting and Working Capital

7h

Unit 5: Inventory Management

7 study hours

•Define inventory/stock management and its concepts.
•Calculate Economic Order Quantity (EOQ) and understand its implications.
•Determine minimum and maximum stock levels.

Week

8

Module 2: Capital Budgeting and Working Capital

8h

Unit 6: Account Receivables and Payables

8 study hours

•Explain accounts receivable and payable management.
•State the factors influencing credit control policy.
•Mention the factors to be considered in granting credits to customers.

Week

9

Module 3: Financial Analysis and Business Combinations

7h

Unit 1: Analysis and Interpretation of Basic Financial Statement

7 study hours

•Define financial statement and its components.
•Analyze and interpret basic financial statements, including income statement and balance sheet.
•Calculate and interpret financial ratios.

Week

10

Module 3: Financial Analysis and Business Combinations

6h

Unit 2: Business Mergers and Take-Overs

6 study hours

•Explain merger and take-over (acquisition).
•State the reasons for mergers and take-overs.
•State the legal and regulatory considerations for mergers and acquisition.

Week

11

Module 4: Advanced Topics

7h

Unit 1: Dividend Policy

7 study hours

•Define dividend policy and its impact on share price.
•Explain the theory of dividend irrelevance.
•Discuss the influence of shareholder expectations and liquidity constraints on dividend decisions.

Week

12

Module 4: Advanced Topics

8h

Unit 2: Valuation of Shares

8 study hours

•Explain valuation of shares and its purpose.
•State the key factors affecting value: growth, return, risk, and interest rates.
•Discuss the various methods of valuing shares.

Week

13

Module 4: Advanced Topics

12h

Unit 3: Asset Management

6 study hours

•Define asset management and its objectives.
•State what constitutes asset management and what does not.
•Discuss the functions of an asset manager.

Unit 4: Enterprise Management

6 study hours

•Define business in contemporary society.
•State the cycle of business.
•State the various forms of business organization.

This study schedule is in beta and may not be accurate. Please use it as a guide and consult the course outline for the most accurate information.

Course PDF Material

Read the complete course material as provided by NOUN.

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Study Tips & Exam Preparation

Expert tips to help you succeed in this course

1

Review definitions and formulas from Units 1-3 on financial management foundations.

2

Practice capital budgeting problems from Units 4-6 using NPV, IRR, and payback methods.

3

Create concept maps linking Units 7-9 working capital management techniques.

4

Analyze sample financial statements from Units 10-11, calculating key ratios.

5

Summarize the key steps and considerations in mergers and acquisitions from Unit 12.

6

Compare and contrast dividend policy theories from Unit 13, focusing on real-world implications.

7

Study share valuation methods from Unit 14, practicing calculations with different assumptions.

8

Review asset management principles from Unit 15, focusing on risk mitigation strategies.

9

Understand the structure and functions of the Nigerian banking system from Unit 16.

10

Practice mortgage finance calculations from Unit 17, focusing on loan amortization.

11

Review capital structure theories from Unit 18, focusing on the trade-off between debt and equity.

12

Allocate study time proportionally based on unit weightings and personal strengths/weaknesses.

13

Review all self-assessment exercises and tutor-marked assignments for comprehensive coverage.

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