BU8201 BUSINESS FINANCE _________________________________________________________________________

Academic Year Course Coordinator Pre-requisites No. of AUs

: : : :

2013/14 Dr.Kong Yoon Kee * see below 3

Semester Other Instructor(s)

: N.A.

Course Description and Scope This course provides non-business and non-accounting students with a broad understanding of the principles and practice of Business Finance/Financial Management. By the end of this course, students would have acquired sufficient finance knowledge to understand and appreciate how various financial decisions can have significant impact on the Profit/Loss and value of firms. They would also be familiar with pricing of stocks and bonds. This is a basic course in finance with emphasis on the major financial decisions made by companies and the valuation of investments made by them. The course starts by examining the various forms of businesses and the importance of interest rates. Time value of money, and the linkage between risk and return, lays the foundation for evaluating the price of bonds and stocks. Students will learn and apply principles of capital budgeting (calculating the profitability of various projects and deciding which one to proceed) and capital structure (financing approved projects by issuing shares or bonds, or using retained earnings). The course concludes with the evaluation of whether a company should use extra cash to pay dividends or repurchase its own shares. Pre-Requisite Students intending to take this course should be numerate (good and comfortable with mathematical calculations and formulas) e.g. they should know well compound interest calculations, Sum of Geometric Progression (G.P.) calculation before attending this course.

Course Learning Objectives See Proposed Weekly Schedule below

Learning & Teaching Methods 2 hours of lecture and 1 hour of tutorial per week Lectures commence in Week 1. Tutorials commence in Week 2

Course Assessments Components Coursework* Examination (closed-book) Total Weightage 40% 60% 100% Individual/Group Individual/Group Individual

* Components of Coursework (40%) are as follows: Class Participation 5% Class Presentation 15% Quiz 20%

Individual Group Individual

Grading for Class Participation and Class Presentation will be based on class attendance + quality of students contribution to class discussions, and quality of presentation made, respectively. Group members may get different marks for Class Presentation depending on their level of contribution. If a student is absent from a tutorial, he should apply for official leave of absence from his own school and submit the official email approval given by his own school, to his BU8201 tutor latest by Friday of the following week. Quiz is tentatively scheduled on Week beginning 31 Mar 2014. Further details will be provided by your tutor later. The quiz will be closed-book; formula sheet will NOT be provided. Attendance is compulsory for the quiz. Unless a student who is absent has an officially approved reason (e.g. medical leave approved by his own school management/admin), zero marks will be awarded. All application for approval is to be sought from the respective school management/admin. The relevant official approval email must be sent by the student to his tutor, latest by Fri 11 Apr 2014.

Textbook Brigham, Eugene F., Joel F. Houston (adapted by Jun-ming Hsu, Yoon Kee Kong, and A.N. Bany Ariffin), Essentials of Financial Management, 3rd edition, Cengage Learning Asia. (ISBN-13: 978981-4441-37-7). For those who want to learn more/need more help, there is an Option which has the hardcopy rd rd textbook (3 Edition) bundled with Cengage Now (3 Edition), which cost a few dollars more. rd Cengage Now (3 Edition) includes online self-study tools, such as an E-book, extra problem sums, etc. Do note that the online access is for a limited period. Also, Cengage Now is for self-learning and is not essential for this course. Course Instructor

Instructor Kong Yoon Kee Marina Lee

* Course coordinator

Email Name (Email Address) Kong Yoon Kee (Dr) (AYKKong@ntu.edu.sg) Lee-Chin Foong Tow, Marina <AMLEE@ntu.edu.sg>

ASSESSMENT PLAN Course Learning Objective

Acquisition of knowledge: Students should show they have acquired the core body of knowledge covered in the curriculum through lectures, tutorials and self-

Assessment Method
Quiz that covers various topics in the core curriculum. Metric: marks scored in the quiz.

directed learning. Students solve tutorial problems and make presentations of their solutions to the class. Metric: marks obtained for the tutorial presentation.

Problem solving & decision making: Students should demonstrate abilities to identify, analyze, and solve problems in business finance.

Proposed Weekly Lecture Schedule (may be subjected to change)

Lect ure 1 2 3 4 5 6 7 8 9 10 11

Week Starting 13 Jan 20 Jan 27 Jan 3 Feb 10 Feb 17 Feb 24 Feb 3 Mar 10 Mar 17 Mar 24 Mar 31 Mar 7 Apr 14 Apr

Tutorial

Lecture Topics Introduction to Financial Management Interest Rate Time Value of Money Types of Financial Markets Bonds and their Valuation Risk and Rate of Return Financial Statement and its Analysis Stocks and their Valuation Cost of Capital Recess Week Capital Budgeting Unequal Project Lives Cash Flow Estimation and Risk Analysis Capital Structure and Leverage ELearning Lecture Distribution to Shareholders: Exams Briefing No Lecture, only Tutorial

Reading C1, C7 C5, C2 C9 C8 C3, C4 C10 C11 C12 C13 C15 C16

T1 T2 T3 T4 T5 T6 T7 T8 T9 QUIZ T10 T11

Activity: Weekly Tutorial questions to be discussed will test and further reinforce concepts taught during lectures. Coverage of Tutorial Session Quick Review of Important Concepts of Lecture Tutorial Presentation Questions and Answers on Lecture and Tutorial conducted by Tutor Questions and Feedback by Students: Other than during the lecture sessions, all questions from students should be addressed to their individual tutorial group instructors. However, students can email the course coordinator about their feedback on lecture delivery and scope/coverage. Tutor Email Address The email addresses of the various tutors are provided in this Course Outline and also in the individual tutorial EdveNTUre website. Calculator Financial calculator would facilitate faster calculations in a number of computation questions in BU8201. One possible choice of financial calculator is the Texas Instrument BA II Plus. Students are expected to be familiar with the use of their own calculator and the use of calculator will not be taught within this course.

As per university procedure, all calculators (financial or non-financial) should bear the university approved sticker that signifies that they are acceptable for use during examinations. Calculator certified by a students respective school is allowed as long as it bears the university approved sticker and all regulations regarding its usage are to be adhered strictly. The rules governing use of calculator during examinations must be strictly adhered to.