SYLLABUS & SAP

MM5007 – Financial Management

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
financialcircumstances 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).</span><br></p><p class="MsoNormal" style="margin: 0cm 0cm 0.0001pt; font-
size: medium; font-family: &quot;Times New Roman&quot;, serif; text-align: justify;"><span
lang="EN-US" style="font-size: 12px; font-family: Arial, sans-
serif;"><o:p>&nbsp;</o:p></span></p><p class="MsoNormal" style="margin: 4.5pt 0cm; font-size:
medium; font-family: &quot;Times New Roman&quot;, serif; text-align: justify;"><span lang="EN-
US" style="font-size: 11pt; font-family: Arial, sans-serif;"><span style="font-size: 12px;">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.&nbsp;</span><o:p></o:p></span></p>

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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
Identify and analyze central problems of
1 Integrative Thinking X
a business case
Construct multiple perspectives that
integrate different factors or aspects,
X
other related business functions and
relevant contextual information
Create recommendation based on the
constructed perspectives and the X
company’s strategic objectives
Understand how to collaborate with
2 Team work
others
Apply the concept of managing conflict
to resolve problem in small group
learning environment
Demonstrate constructive feedback in
small group learning environment
Present information in an organized and
3 Communication Skills
concise manner
Demonstrate skill to persuade others in
persuasive manners
Demonstrate listening skills
Recognize ethical issues in business
4 Ethical Responsibility
context
Assess the impact of ethical issue
toward various stakeholders
Systematically analyze the pro and cons
of any decisions related to ethical issues
Demonstrate the propensity to take
5 Leadership
initiative

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 Bring influence toward other people in
her/his team
Inspire and empower others by
evaluating, analyzing, and providing
critics on how leadership behaviors and
characteristics affect employees and
businesses outcomes
Demonstrate an ability to manage
change
Identify global issues that may affect the
6 Global awareness X
industry (Global Intellectual Capital)
Develop understanding toward global
cultural aspects that affect business X
operations
Develop business recommendations
based on understanding about the X
global aspects

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4. Reading Material
Principles of Managerial Finance, 14th ed.

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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/ Activities Lecturer

Module
Topic: -
Introduction and Financial Statements
Sub-topic:
Introduction Financial Market Environment
Activity:
Saturday 16 Lecture
November 2019 Description:

Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Introduction to Financial Management
Sub-topic:
Saturday 16
Financial Market Environment
November 2019
Activity:
Watching Video on Agency Problem
Description:

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 Learning agency problems in corporate finance
Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Financial Statement Analysis
Sub-topic:
Financial Statements Financial Ratios Analysis Dupont Analysis
Activity:
Saturday 16 Lecture and Class Discussion
November 2019 Description:
LGJ Chapter 3
Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Financial Statement Analysis
Sub-topic:
Financial Detective Case
Saturday 16 Activity:
November 2019 Case Discussion (Group Presentation)
Description:

Reference:
Principles of Managerial Finance, 14th ed. ()

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 Topic: -
Financial Statement Analysis
Sub-topic:
Krakatau Steel Case A and B
Activity:
Saturday 16 Case Discussion
November 2019 Description:

Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Cash Flow and Financial Planning
Sub-topic:
Cash Budget Proforma Financial Statements
Activity:
Sunday 17 Lecture and Class Discussion
November 2019 Description:
LGJ Chapter 4
Reference:
Principles of Managerial Finance, 14th ed. ()

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 Topic: -
Time Value of Money
Sub-topic:
Present Value & Future Value Annuity Application
Activity:
Sunday 17 Lecture and Class Discussion
November 2019 Description:
LGJ Ch.5
Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Time Value of Money
Sub-topic:
Developing Financial Insight Case
Activity:
Sunday 17 Case Discussion
November 2019 Description:

Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Sunday 17
Interest Rates & Bond Valuation
November 2019
Sub-topic:

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 Interest Rates Bond Characteristics & Valuation
Activity:
Lecture and Class Exercises
Description:
LGJ Ch.6
Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Stock Valuation
Sub-topic:
Stock Valuation
Activity:
Sunday 17 Lecture and Class Exercises
November 2019 Description:
LGJ Ch 7
Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Cost of Capital
Saturday 30 Sub-topic:
November 2019 Risk and Return Cost of Capital
Activity:
Lecture and Class Discussion

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 Description:
LGJ Ch.8 and Ch.9
Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Cost of Capital
Sub-topic:
Nike Cost of Capital
Activity:
Saturday 30 Case Discussion
November 2019 Description:

Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Capital Budgeting
Sub-topic:
Capital Budgeting Techniques
Saturday 30
Activity:
November 2019
Lecture and Class Exercises
Description:
LGJ Ch10
Reference:

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 Principles of Managerial Finance, 14th ed. ()

Topic: -
Exam
Sub-topic:
Exam
Activity:
Saturday 30
November 2019 Description:

Reference:
-

Topic: -
Exam
Sub-topic:
Exam
Activity:
Saturday 30
November 2019 Description:

Reference:
-

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 Topic: -
Capital Budgeting
Sub-topic:
Capital Budgeting Cash Flow
Activity:
Sunday 01 Lecture and Class Exercises
December 2019 Description:
LGJ Ch.11
Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Capital Budgeting
Sub-topic:
Investment Detective Case Fonderia di Turino Case
Activity:
Sunday 01 Case Discussion
December 2019 Description:

Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Sunday 01
Capital Budgeting
December 2019
Sub-topic:

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 Case discussion
Activity:
Lecture and Class Discussion
Description:
LGJ Ch.12
Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Risk and Refinements in Capital Budgeting
Sub-topic:
Risk and Refinements in Capital Budgeting
Activity:
Sunday 01 Lecture and Class Exercises
December 2019 Description:
LGJ Ch.13
Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Leverage and Capital Structure
Sunday 01 Sub-topic:
December 2019 Lecture and Class Discussion
Activity:
Case Discussion

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 Description:

Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Leverage and Capital Structure
Sub-topic:
Case Discussion: An Introduction to Debt Policy and Value
Activity:
Saturday 14 Discussion
December 2019 Description:
LGJ Ch.14
Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Dividend and Pay Out Policy
Sub-topic:
Dividend and Pay Out Policy
Saturday 14
Activity:
December 2019
Class Exercise
Description:

Reference:

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 Principles of Managerial Finance, 14th ed. ()

Topic: -
Short Term Financial Decision
Sub-topic:
Working Capital Management
Activity:
Saturday 14 Lecture and Class Exercise
December 2019 Description:
LGJ Ch.15
Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Short Term Financial Decision
Sub-topic:
Case discussion: Dells Working Capital
Activity:
Saturday 14 Case Discussion
December 2019 Description:
LGJ Ch.16
Reference:
Principles of Managerial Finance, 14th ed. ()

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 Topic: -
Special Topics in Finance
Sub-topic:
Merger
Activity:
Saturday 14 Lecturing, Exercises
December 2019 Description:

Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: -
Special Topics in Finance
Sub-topic:
Leasing
Activity:
Sunday 15 Lecturing, Exercises
December 2019 Description:

Reference:
Principles of Managerial Finance, 14th ed. ()

Topic: Yunieta Anny Nainggolan

Sunday 15
Special Topics in Finance
December 2019
Sub-topic:

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 Digital Finance
Activity:
Class Seminar
Description:

Reference:
-

Topic: Yunieta Anny Nainggolan

Special Topics in Finance
Sub-topic:
Digital Finance
Activity:
Sunday 15 Class Seminar
December 2019 Description:

Reference:
-

Topic: -
Exam
Sunday 15 Sub-topic:
December 2019 Exam
Activity:

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 Description:

Reference:
-

Topic: -
Exam
Sub-topic:
Exam
Activity:
Sunday 15
December 2019 Description:

Reference:
-

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6. Assessment Summary
Table 4. Assessment summary and weight of Financial Management
ASSESSMENT TASK DUE DATE

7. Grading Policy

Aspect %
Individual Assignment 20
Group Assignment 20
Mid Semester Test 30
Final Examination 30
TOTAL 100

8. Course Policy
1. Laptop and personal communication are not allowed during the class 2. Lecturer will not accept
delays in the assignment submission 3. No make-up quiz and exam 4. Bring calculator

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

Lecture Profile
1 Name : Yunieta Anny Nainggolan

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

Office : SBM ITB Building, Jl. Ganesha No. 10 Bandung, Room 202

Short Profile

Name : Dr. Yunieta Anny Nainggolan (Neta) E-mail : yunieta@sbm-itb.ac.id Office : SBM
ITB Building, Head of MSM/DSM Education background: Bachelor of Economics (Majoring
Finance), University of Indonesia, 2001 Master of Commerce (in Finance), with Honours,
the University of Melbourne, 2006 PhD (in Finance), with outstanding thesis award,
Queensland University of Technology, 2011 Academic Experience: Department of
Management, Faculty of Economics, University of Indonesia (FEUI) (2001 – 2006); Deakin
University (2004-2005); Queensland University of Technology (2009 – 2014); SBM ITB
(2007 – now). Professional Experience: AAA Securities, Dinar Securities, Lab Studi
Manajemen FEUI. Papers: “Optimal trading range and firm value around the Asian financial
crisis,” Afro-Asian Journal of Finance and Accounting (2009); “Ethical screening and
financial performance: The case of Islamic equity funds,” with Janice How and Peter
Verhoeven (QUT) in a high ranked journal, Journal of Business Ethics (2015).
Teaching/Research interests: Corporate Finance, Mutual Fund, Applied Investment, Socially
Responsible Investment, Corporate/Fund Disclosure. Professional Certification: Investment
Manager Representative

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