Syllabus

Fundamentals of Financial Management 1

Credit units

3 units

Code

MAN2101

Facilitator

Sri Handaru Yuliati

Office

South-wing building, 3rd floor

Faculty Economics and Business, Universitas Gadjah Mada
Yogyakarta, Indonesia 55281
Phone : +62 274 548510 ext. 117
e-mail : srihandaru.assistant@gmail.com

Consultation
Time

Wednesday, 10.00 12.00

Friday, 10.00 12.00 or with appointment

Prerequisite

MAN1501 (Introduction to Business)

Course
Description

Financial Management 1 is an introductory finance course designed to

make students understand the basic finance concepts. The course involves
studies on decision-making utilizing financial resources available to the firm
from the perspective of the manager. The course emphasizes the
understanding of finance theory and working knowledge of the financial
environment in which the firm operates in order to develop appropriate
financial strategies. Hence, it covers the whole range of basic finance
concepts, economics and financial environment, financial statement
analysis, risk and return analysis, the valuation process (bond and stock),
capital budgeting (cost of capital and cash flow estimation).

Learning
Objectives

After completion of this course, students are expected to be able to:

1. Identify and describe basic concepts and theories in finance,
especially the financial management of business corporations.
2. Identify critical point of financing decisions process, interpret financial
statement.
3. Analyze risk and return, analyze financial statement (financial ratio),
evaluate corporate operation and performance; distinguish financial
performance, risk and return of companies from different industries
characteristics.
4. Estimate cost of capital, valuate corporate asset both real assets
(capital budgeting, project analysis) and financial assets (bonds and
stocks).
5. Analyze problems, weighing alternative solutions, and deciding the
best possible solution to a companys problems or opportunities in the
financial context.

Book and
Reading
Material

1. Brigham and Houston, adapted by Jun-Ming, Yoon Kee and Arifin.

2013. Essential of Financial Management. Third Edition, Cengage
Learning Asia Pte Ltd, Singapore.
2. Additional materials will be distributed later.

Students
Responsibilities

Class participation. Students are highly expected to contribute ideas,

thoughts, experiences, and argument to the class discussion. Although
overviews of key points and issues will be provided, we strongly
recommend that students comprehend the materials in details, raise
questions and ideas, and create a lively class, meaning that you must
read and prepare readings assigned prior to coming to the class. Besides,
students are encouraged to raise comments on, questions, or critiques to
the other presenting groups.

Absenteeism

Predicted on FEB UGM regulation, students are required to attend 100% of

total lectures held. Any violations against this rule may render the final
grade penalized.

Learning
method

An experiential approach. Continuously and consistently, students are

assigned to construct experiential observations on managerial cases and
practices, and subsequently report the findings to the instructor.
Internet exploration. Students are encouraged to harness the
advancement of information technology in exploring knowledge and
opportunities. Remember that in current circumstances, a clever person is
not she being able to answer all questions; rather, it knows where to find
answers.
Assignments. Student will be assigned individually to solve problem at the
end of each chapter. It is expected that the student works diligently on these
assignments so as to apply theoretical concepts to real problems and
develop students analytical and problem solving skills.

Grading

Examinations. Mid-term and final test purport to examine students

knowledge and understanding on concepts learnt in the lectures.
WEIGHT SCORE:
Assignment and Class participation : 20%
Quiz 1 and 2
: 20%
Mid-Term Exam
: 30%
Final Exam
: 30%

Topics and Learning Goals

Session
1
2
3

Topic(s)
Overview of Financial
Management
Financial Markets and
Institutions
Financial Statements, Cash
Flow, and Taxes

Learning Goals
DAUK

DAC

DAWT

DUICE

Sources
DAL

BH-1

BH-2

BH-3

4
5
6
7
8
9
10
11
12
13

14

Analysis of Financial
Statements
The Time Value of Money
Interest Rate, Risk and Rate
of Return
Bond and Their Valuation
Stock and Their Valuation
The Cost of Capital
The Basic of Capital
Budgeting
Cash Flow Estimation and
Risk Analysis
Real Option and Other Topics
in Capital Budgeting
Case Analysis and Report
(Financial Statement Analysis:
Measuring Corporate
Performance)
Case Analysis and Report
(Current Issues in Corporate
Finance)

BH-4

BH-5
BH-7

BH-9
BH-10
BH-11

BH-12

BH-13

BH-14

TBA

TBA

DAUK=Demonstrate the Ability to Understand Knowledge in the Field of FM; DAC= Demonstrate the Ability to
Communicate; DAWT = Demonstrate the Ability to Work in Team; DUICE = Ability to Identify and Make a Choice based on
ethical consideration; DAL= Demonstrate the Ability to leads others.

Notes: All assignments and others materials to be announced.