Beruflich Dokumente
Kultur Dokumente
AND TECHNOLOGY
GRADUATE SCHOOL OF BUSINESS
MR F. CHINJOVA
AIM:
To provide students with an understanding of the principles, concepts and techniques used in
making financial management decisions.
To ensure that the students understand the concepts behind available theoretical models and
can assess the relevance of developments in financial management theory to an enterprise.
To provide an ability to select the techniques most appropriate to optimize the employment of
resources
To ensure that students understand the workings of the financial system and evaluate
alternative sources of fianc and assess investment possibilities.
To appreciate the treasury management function, the working capital aspects.
COURSE OBJECTIVES
At the end of the course students should be able to: Communicate the consequences of financial management decisions to accountants and non
accountants.
Analyse financial problems
COURSE OUTLINE
1. Goals and Functions of Finance
Role of Financial Manager, investment decisions, financial decisions, dividend decisions,
organizing the finance function, financial objectives, relationships between an organisations
shareholder, management, lenders, customers, suppliers, employees.
2. Financial Sector of the Zimbabwe Economy
The Zimbabwe Financial Markets, money and capital markets, the role of Stock Exchange.
3. Methods of Raising Equity Capital
Cost of new issues, Rights, issues, Pricing new issues, Scrip dividends and Scrip issues,
Venture Capital etc, long term, medium term and short term financing determining the choice
of each type of finance, obtaining external long-term financing, common stock (ordinary
shares), fixed income securities, debts and preferred stock, lease financing.
4. Concepts in valuation
The time values, internal rate of return (IRR), bond returns, the return from a stock
investment and dividend discount models measuring risk (the standard deviation) and asset
based methods.
5.
6.
7.
8.
Nostrand Reinhold)
J.R. Franks and J.E. Broyles: Modern Managerial Finance (John Wiley)
C. Higson: Business Finance (Butterworths)
J.F. Weston and E.F. Brigham, Managerial Finance (The Dryden Press
R.G. Schultz and R.E. Schultz: Basic Management: Texts, Problems and Cases
(Intext Educational Publishers)
MR F. CHINJOVA
AIM:
To provide students with an understanding of the principles concepts and techniques used in
making optional decisions in managerial economics.
To ensure that students understand and critically evaluate business alternatives that may not
necessarily optimize profits and other objectives of the firm.
COURSE OBJECTIVES
At the end of the course students should be able to: Apply analytical tools in solving organizational problems in business
Able to make optional business decisions
Able to critically evaluate business alternatives that are not maximizing profits.
COURSE OUTLINE
1. Introduction
Definition of managerial economics;
Methodology of managerial economics
Scope and links of Managerial economics with other disciplines
Business organization
2. Business objectives and models of the firm
The Neo-Classical Model
Sales maximization model
Utility maximization model
Profit maximization rate of growth model
Behavioural model
The concept of x-inefficiency
3. Theory of consumer behavior an market demand
Consumer preferences and choice
Consumer behaviour and market demand
Market demand analysis under perfect competition i.e PED, YED and CED.
Determination of price in the market
Functions of price
4. Production and determination of costs
Theory of production
Theory of costs
5. Formal Models of Market Structures
Perfect competition
Pure monopoly
Monopolistic competition
Oligopoly
6. Risk and Uncertainty
Applications of economics of information
The problem of moral hazard
Asymmetric information
7. Game Theory in decision making
8. Investment Decisions and Cost of Capital
Weighted average cost of capital (WACC)
Investment appraisal techniques i.e payback period, Net Present Value,, Internal rate of
Return and Accounting Rate of Return
RECOMMENDED TEXTS
Chiang A.C (1984): Fundamental methods of Mathematical Economics, 3rd Edition.