SYLLABUS & SAP

MM5007 – Financial Management

GM 8

Semester I - 2019/2020

MASTER OF BUSINESS ADMINISTRATION PROGRAM

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
2019

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1. Mission of SBM ITB
SBM ITB has mission as follows:

“To educate students to be innovative leaders with an entrepreneurial mindset and to

develop and disseminate knowledge of business and management for the betterment of
business, government, and society”

2. Course Description
<p style="text-align: justify; ">MM 5007 Financial Management is a mandatory course for students
enroll in MBA Program. Lectures on Financial Management provide knowledge and practical
experiences in managing corporations. Broadly speaking, Corporate Financial Management covers
the knowledge on matters of risk-and-return, as well as financial liquidity and profitability of the
corporation. Both subjects are keys for success in corporate management, namely so that the
company is capable of growing and developing adaptive behavior towards the company’s
environment. In studying Financial Management, one should also learn about the financial
circumstances where the corporation is, including the financial instruments and institutions that
could assist the corporation or company in obtaining the necessary funds for operation or new
investments for the growing company. The corporate success is determined by its ability in making
strategic financial decisions, through bank loans, issuance of bonds or shares (common stock and
preferred stock), as well as its tactical financing decisions. Students are expected to know and apply
the ethical corporate finance decision making in real business situations. Therefore, the course will
meet the Learning Goals of Master of Business of Administration as follows: 1. LG 1: Integrative
Thinking 2. LG 4: Ethical Responsibility 3. LG 6: Global awareness</p><p><span style="font-size:
12px; font-family: Arial, sans-serif; text-align: justify;">This course focuses on the role of the financial
manager in creating value within a business organization. It provides exposure to the tools and issues
for financial decision making in a firm. Thus, the main focus of the course is on understanding: i) tools
for financial decisions, ii) valuation of stocks and bonds, iii) strategic corporate investment decisions
(which project to take), and iv) strategic financing decisions (optimal dividend payout policy and
capital structure). This course incorporates relevant topics for business leaders towards better
decisions making and problems solving, both on day-to-day matters and strategic investment
decisions, increase ability to communicate effectively within the company and explain how and why
value is created by businesses for sustainability.

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 3. Learning Goals and Objectives of Master of Business
Administration
Master of Business Administration has learning goals and objectives as on Table 1 below.
Fourth column shows the LG/LO of study program attached to courses.

Table 1. Learning Goals and Objectives of Master of Business Administration

No Learning Goal Learning Objectives Course LG/LO
1 LG 1: Integrative 1.1. Identify and analyze central LG 1/ LO 1
Thinking problems of a business case :
1.1.1. Data or information, symptoms
and preliminary business issues

1.2. Construct multiple perspectives LG 1/ LO 2

that integrate different factors or
aspects, other related business
functions and relevant contextual
information :
1.2.1. Comprehensiveness and
relevance of the conceptual framework

1.3. Create recommendation based on LG 1/ LO 3

2 LG 4: Ethical
Responsibility
3 LG 6: Global
awareness
the constructed perspectives and the
company’s strategic objectives :
1.3.1. Systematic, coherence, relevance
of the solution
4.1. Recognize ethical issues in business LG 4/ LO 1
context :
4.1.1. Coherence of issues related to
integrity
6.1. Identify global issues that may LG 6/ LO 1
affect the industry (Global Intellectual
Capital) :
6.1.1. Comprehension of the most
recent global issues
6.1.2. Relevance of the global issues
6.1.3. Impacts of the global issues

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4. Reading Material
Principles of Managerial Finance, 14th ed., Fundamentals of Corporate Finance, Corporate
Finance; Asia global edition

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 5. The Course Schedule/ Plan
Table 3 present the class activities that are required to achieve the learning objectives of this course.

Table 3. Weekly Class Activities of Financial Management

Week/ Date/ Module Activities Lecturer

Topic: RAR
Introduction and Financial Statements
Sub-topic:
Introduction Financial Market Environment
Tuesday 20 August
Activity:
2019
Lecture
Description:
Reference:
Principles of Managerial Finance, 14th ed. (Ch.1 and Ch.2)
Topic: RAR
Introduction to Financial Management
Sub-topic:
Financial Market Environment
Activity:
Tuesday 20 August
Watching Video on Agency Problem
2019
Description:
Learning agency problems in corporate finance
Reference:
The Financial Detective ()
Assignment

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 Individual Assignment (Class Exercises E1-5,P1-2,P1-3,P1-4), Individual
Assignment (Reading and Preparing Financial Detective Case)
Topic: RAR
Financial Statement Analysis
Sub-topic:
Financial Statements Financial Ratios Analysis Dupont Analysis
Activity:
Tuesday 27 August Lecture and Class Discussion
2019 Description:
LGJ Chapter 3
Reference:
-
Assignment
Individual Assignment (Class Exercises 3-12,3-16,3-24, 3-25, 3-26)
Topic: RAR
Financial Statement Analysis
Sub-topic:
Financial Detective Case
Activity:
Tuesday 27 August Case Discussion (Group Presentation)
2019 Description:
Reference:
The Financial Detective (), Krakatau Steel (A): Financial performance (), Krakatau
Steel (B): global competition ()
Assignment
Individual Assignment (Reading and Preparing Krakatau Steel Case A and B)

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 Topic: RAR
Financial Statement Analysis
Sub-topic:
Krakatau Steel Case A and B
Tuesday 03
Activity:
September 2019
Case Discussion
Description:
Reference:
-
Topic: RAR
Cash Flow and Financial Planning
Sub-topic:
Cash Budget Proforma Financial Statements
Activity:
Tuesday 03 Lecture and Class Discussion
September 2019 Description:
LGJ Chapter 4
Reference:
-
Assignment
Individual Assignment (Class Exercises)
Topic: RAR
Time Value of Money
Tuesday 10 Sub-topic:
September 2019 Present Value & Future Value Annuity Application
Activity:
Lecture and Class Discussion

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 Description:
LGJ Ch.5
Reference:
-
Assignment
Individual Assignment (Class Exercise)
Topic: RAR
Time Value of Money
Sub-topic:
Developing Financial Insight Case
Tuesday 10 Activity:
September 2019 Case Discussion
Description:
Reference:
Developing Financial Insights: using a future value (FV) and Present Value (PV)
approach ()
Topic: RAR
Interest Rates & Bond Valuation
Sub-topic:
Interest Rates Bond Characteristics & Valuation
Activity:
Tuesday 17
Lecture and Class Exercises
September 2019
Description:
LGJ Ch.6
Reference:
-
Assignment

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 Individual Assignment (Class Exercises: 6-20,6-22,6-23, 6-25)
Topic: RAR
Stock Valuation
Sub-topic:
Stock Valuation
Activity:
Lecture and Class Exercises
Tuesday 17
Description:
September 2019
LGJ Ch 7
Reference:
Nike Inc.; cost of capital ()
Assignment
Individual Assignment (Class Exercises: 7-18,7-20,7-23), Individual Assignment
(Reading and Preparing Nike Inc, Cost of Capital Case)
Topic: RAR
Cost of Capital
Sub-topic:
Risk and Return Cost of Capital
Activity:
Tuesday 24 Lecture and Class Discussion
September 2019 Description:
LGJ Ch.8 and Ch.9
Reference:
-
Assignment
Individual Assignment (Class Exercise)

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 Topic: RAR
Cost of Capital
Sub-topic:
Eco Plastics Company Case
Tuesday 24
Activity:
September 2019
Case Discussion
Description:
Reference:
Principles of Managerial Finance, 14th ed. (Integrative Case 4 Page 437)
Topic: RAR
Tuesday 01 October Mid Exam
2019 Sub-topic:
Weeks 1 - 6
Topic: ADP
Capital Budgeting
Sub-topic:
Capital Budgeting Techniques
Activity:
Tuesday 08 October Lecture and Class Exercises
2019 Description:
LGJ Ch10
Reference:
-
Assignment
Individual Assignment (Class Exercise)
Tuesday 08 October Topic: ADP
2019 Capital Budgeting

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 Sub-topic:
Capital Budgeting Cash Flow
Activity:
Lecture and Class Exercises
Description:
LGJ Ch.11
Reference:
-
Assignment
Individual Assignment (Class Exercise), Individual Assignment (Reading and
Preparing Investment Detective and Fonderia Cases)
Topic: ADP
Capital Budgeting
Sub-topic:
Investment Detective Case Fonderia di Turino Case
Tuesday 15 October
Activity:
2019
Case Discussion
Description:
Reference:
The Investment Detective (), Fonderia Di Torino S.P.A ()
Topic: ADP
Capital Budgeting
Sub-topic:
Tuesday 15 October
Case discussion
2019
Activity:
Lecture and Class Discussion
Description:

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 LGJ Ch.12
Reference:
The Investment Detective (), Fonderia Di Torino S.P.A ()
Assignment
Individual Assignment (P10-27 and P11-25 on Gitman and Zutter 14 ed)
Topic: OYS
Risk and Refinements in Capital Budgeting
Sub-topic:
Risk and Refinements in Capital Budgeting
Activity:
Tuesday 22 October Lecture and Class Exercises
2019 Description:
LGJ Ch.13
Reference:
-
Assignment
Quiz (Class Quiz)
Topic: OYS
Leverage and Capital Structure
Sub-topic:
Lecture and Class Discussion
Tuesday 22 October Activity:
2019 Case Discussion
Description:
Reference:
Principles of Managerial Finance, 14th ed. (), An introduction to debt Policy and
Value ()

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 Assignment
Individual Assignment (Reading case: An Introduction to Debt Policy and Value)
Topic: OYS
Leverage and Capital Structure
Sub-topic:
Case Discussion: An Introduction to Debt Policy and Value
Tuesday 29 October Activity:
2019 Discussion
Description:
LGJ Ch.14
Reference:
An introduction to debt Policy and Value ()
Topic: OYS
Dividend and Pay Out Policy
Sub-topic:
Dividend and Pay Out Policy
Tuesday 29 October
Activity:
2019
Class Exercise
Description:
Reference:
Kota Fibres ltd ()
Topic: OYS
Short Term Financial Decision
Tuesday 05 Sub-topic:
November 2019 Working Capital Management
Activity:
Lecture and Class Exercise

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 Description:
LGJ Ch.15
Reference:
Principles of Managerial Finance, 14th ed. ()
Assignment
Individual Assignment (Class Exercise)
Topic: OYS
Short Term Financial Decision
Sub-topic:
Case discussion: Dells Working Capital
Tuesday 05 Activity:
November 2019 Case Discussion
Description:
LGJ Ch.16
Reference:
Dell's Working Capital (), Principles of Managerial Finance, 14th ed. ()
Topic: OYS
Special Topics in Finance
Sub-topic:
Leasing
Tuesday 12 Activity:
November 2019 Lecture
Description:
LGJ Ch.17 and Ch.18
Reference:
Principles of Managerial Finance, 14th ed. ()

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 Topic: OYS
Special Topics in Finance
Sub-topic:
Case Discussion: Primus Automation Division
Tuesday 12 Activity:
November 2019 Case Discussion
Description:
Reference:
Primus Automation Division, 2002 (), Principles of Managerial Finance, 14th ed.
()
Topic: OYS
Final Exam
Sub-topic:
Tuesday 19 Weeks 7 - 13
November 2019 Activity:
Description:
Reference:
-

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6. Assessment Summary
For this class, a combination of exams, group assignment, individual assignment, and quiz
will be used to compose the final grade for the student.

7. Grading Policy
Aspect %
Individual Assignment 20
Group Assignment 20
Mid Semester Test 30
Final Examination 30
TOTAL 100

8. Course Policy
▪ Please refer to Study Program/ University Policies (e.g. presence percentage requirement)
and Guidelines
▪ Maximum late allowance for entering the class is 15 minutes, more than that you are
allowed to enter the class but not recorded in the attendance list.
▪ Penalty is applicable for late submission
▪ No make-up quizzes
▪ Student’s final grade will be downgraded by one level when the attendance rate is <80%
▪ Zero tolerance for cheating
▪ Participation in the class is a vital part in developing the students’ competences in this
financial management course.

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9. Lecture(S)/ Facilitator(S) Profile

Lecture Profile
1 Name : Raden Aswin Rahadi (RAR)

E-mail : aswin.rahadi@sbm-itb.ac.id

Office : Room 313, School of Business and Management, Institut Teknologi Bandung

Short Profile

Dr. Raden Aswin Rahadi has direct experience working for 15 (fifteen) years in real estate,
property, architecture, design, investment management, feasibility study, financial
planning consultant and research industry. He holds a bachelor degree in Architecture
Engineering from Bandung Institute of Technology; two master degrees in Management
from Swiss German University, Indonesia and in Business Administration from
Fachhochschule Konstanz – Hochschule für Technik, Wirtschaft und Gestaltung, Germany;
and a Doctorate degree in Management Science from School of Business and
Management, Bandung Institute of Technology. He also holds Qualified Wealth Planner
(QWP®) certification from IAFP Global; International NLP Basic Practitioner Certificate from
National Federation of Neuro-Linguistic Programming (NFNLP); and Registered Financial
Associate (RFA®) Certificate from International Association of Registered Financial
Consultants. Previously, he works as Senior Lecturer at School of Maritime Business and
Management, Universiti Malaysia Terengganu (2016-2017); Managing Partner at RA+
Consulting (2010-2016); Senior Associate at Northstar Pacific and Partners (2004-2010);
and Junior Business Development Manager at PT. Bumi Serpong Damai Tbk. (2003-2004).
Previously, he works as Managing Partner at RA+ Consulting (2010-2016); Senior Associate
at Northstar Pacific and Partners (2004-2010); and Junior Business Development Manager
at PT. Bumi Serpong Damai Tbk. (2003-2004). His main research interests are in Property
Development, Real Estate Management, Property Financial Study, Consumer Behavior
Study, Marketing Study, Entrepreneurship, e-Commerce, Financial Planning, City and
Quality of Life Improvement.

2 Name : Ahmad Danu Prasetyo (ADP)

E-mail : ahmad.danu@sbm-itb.ac.id

Office : Room 313, School of Business and Management, Institut Teknologi Bandung

Short Profile

Ahmad Danu Prasetyo is a faculty member at the School of Business and Management,
Bandung Institute of Technology (SBM ITB). He obtained a Ph.D degree from the Graduate
School of Economics, Keio University, Japan. Danu earned his Bachelor in Industrial
Engineering from Telkom Institute of Technology, Indonesia and Master of Science in
Management from Bandung Institute of Technology, Indonesia. He got a cum laude title for
the later degree.

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 Danu received merit based scholarships for almost in every level of higher studies.
Furthermore, he was appointed as Adjunct Researcher during his doctoral study at Keio
University. He also had the opportunity to join Asian Development Bank Institute in Tokyo
as Research Associate. Danu had also served the Ministry of Finance, Republic of Indonesia
as a consultant for various projects, especially in Government Bond Market development.

Danu has a wide range of research interest in Economics and Finance, especially in
Macroeconomic Policy, Fiscal Policy, Monetary Policy, Public Policy, Stock and Bond
Market, and Personal Finance. Some of his papers were published in Scopus indexed
journals such as International Journal of Economic Policy in Emerging Economies, Journal
of Comparative Asian Development and Global Business and Economic Review.

3 Name : Oktofa Yudha Sudrajad (OYS)

E-mail : oktofa@sbm-itb.ac.id

Office : SBM ITB

Short Profile

Oktofa Yudha Sudrajad, Ph.D is a lecturer at School of Business and Management - Institut
Teknologi Bandung (SBM ITB), Indonesia. He earned his PhD degree from the Department
of Finance and Law of HEC School of Management, University of Liege. He finished his
bachelor degree from Department of Industrial Engineering, Institut Teknologi Bandung.
He holds a Master of Science in Management from SBM ITB.

He has research interest in banking and finance, particularly in Islamic finance. He has
presented his research at several international conferences and workshops. Part of his
work has been already published in international indexed peer-reviewed journals. He also
involved in several projects related to his financial expertise such as with PT Timah
Indonesia, PT Kereta Api Indonesia, PT Telkom Indonesia, PT PLN, PT Toba Sejahtera,
Wilmar Group, Central Bank of Indonesia and many other companies.

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